RESEARCH PROPOSAL

An investigation into the factors which influence international students' choices of bank in Glasgow

An investigation into the factors which influence international students' choices of bank in Glasgow

Rationale

Today's highly competitive and rapidly advancing market of financial services lead towards challenges to the prosperity of all sizes of banks. This increasing rivalry as well as dispersion among the banks make it essential for banks to focus more and more on their customers' demands. Customers highly consider the time value of money and keeping that in consideration, they evaluate the variety of choices they have in the market, which results in unlimited switching choices (Chigamba & Fatoki, 2011, p.66). Thus, banking institutions are required determining the causes that impacts on the choices of customers to choose a bank and thereby improving their systems. In order to determine how individuals choose their banks have given significant concentration by various researchers, however, one propering and potential segment that has not yet given considerable attention is the “oversees/international students”. This market segment holds an immense importance since they mark the test of upcoming profitable marketplace for banking institutions, and thereby it is essential for these institutions to cultivate this vivacious target market by understanding which factors impact on the their choices of banks. Furthermore, the loyalty of these individuals to the banks needs to be developed prior to their becoming employees or earners (Chigamba & Fatoki, 2011, p.67).

Therefore, this research will determine the factors that influence international students' choices of bank in Glasgow. Currently, 17% of students in the UK and 21% of students in Scotland are international students during 2011 to 2012 (UKCISA, 2012, n.d). This is an important group with the population of 435,240 for banks to attract as customers. According to different studies, there is wide range of factors that influence international students' choice of banks in Glasgow, such as marketing strategies that greatly impacts on the decisions making (Kaura and Kumar, 2012, p.66). Other major factors include financial stability of the banks, strength of brand name, location of the bank, oversees services provided by banks, assurance of confidentiality, and several other reasons impacts on international students' desire to have relationship with their banks (Lajuni et al, 2010, p.105; Tank & Tyler, 2005, p.158). Hence, various factors are presented that influence the selection of banks of the international students in Glasgow, and therefore these factors must be determined and focused.

This topic holds an immense importance for the banks in Glasgow, mainly because this study will provide a clear idea to the Glasgow banks of real financial needs of international students to offer the oversees students more personalized services (WU, 2011, p.3). Similarly, this investigation will also provide an understanding to the oversees students in Glasgow of the factors that impacts on their decision making regarding their banks and which banks are best to meet their financial needs. Thus, this study will fulfil the gap by illustrating the differences in the view and sensitivity of options with regards to determinants that will ...