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Family Loyalty Starts with College Students

Parting Words

Family Loyalty Starts with College Students
By Laura Fisher

While studies show that college students prefer their hometown bank, how can you hold on to these new customers after graduation? One way to create loyalty is to bridge the gap between the structure of home and the independence of college that sometimes leads to financial trouble. Help students manage their money by providing point-of-sale financial education, providing payment card options and educating teens about wise credit use.

The most common way students acquire a credit card is to apply in person at the bank, according to Student Monitor, a market research firm focused on college students. Banks can build students' loyalty and their knowledge by providing credit education along with the new account. A statement stuffer or a basic primer on credit, such as the ABA Education Foundation's Personal Finance Basics series, is an inexpensive way to add value to the transaction.

Check cards are a popular payment method for students -- 59 percent of students use them -- but ATM-only cards also should be offered. Many parents may not be aware of this option. A parent who recently contacted the foundation praised her bank for suggesting this type of card, explaining: "My daughter won't be able to take out more money than she actually has, which limits the overdraft fees, as well as the amount we would have had to cover when she went crazy with the debit card!"

Finally, financial education must be taught early and often. Bankers can get involved by participating in Get Smart About Credit Day on Oct. 16 and throughout the month of October. Participants will be recognized on the ABA Education Foundation Web site and in ABA publications.

Student Monitor found that 57 percent of students who use a hometown bank selected the same bank as their parents. Build a relationship with young adults now and your bank could be serving their family for generations to come.

For more information about Get Smart About Credit Day. Contact Laura Fisher at 1-800-BANKERS or 202-663-5309.

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Supplement Staff:
John Ginovsky,
Managing Editor; 
Deborah Powell,
Designer

Contributors:
Pat Dalton, Keith Leggett, Laura Fisher