In the past, designing & marketing student and graduate financial products was relatively straightforward. Marketing to the modern Higher Education student is now much more complex. The consumer base is less socially homogenous, the type of qualifications studied for are more varied, and the way in which students finance their education has altered dramatically. Now, only half of the student market is actually studying for a first-degree, while a significant proportion of Higher Education students study for Diplomas in Higher Education, HNCs, HNDs, Foundation degrees and other sub-degree level Higher Education courses. In addition the post-graduate degree sector has developed substantially. Naturally, this new melting pot of students and graduates creates a more fragmented consumer base, churning out students with differing goals, financial needs and career prospects. Financial providers now need to understand a number of different types of students and graduates in order to tailor and market their financial products correctly. Old assumptions that graduates will go on to be big earners and thus, justify being subsidised through their student days may have to be questioned.

In the past, designing & marketing student and graduate financial products was relatively straightforward. Marketing to the modern Higher Education student is now much more complex. The consumer base is less socially homogenous, the type of qualifications studied for are more varied, and the way in which students finance their education has altered dramatically. Now, only half of the student market is actually studying for a first-degree, while a significant proportion of Higher Education students study for Diplomas in Higher Education, HNCs, HNDs, Foundation degrees and other sub-degree level Higher Education courses. In addition the post-graduate degree sector has developed substantially. Naturally, this new melting pot of students and graduates creates a more fragmented consumer base, churning out students with differing goals, financial needs and career prospects. Financial providers now need to understand a number of different types of students and graduates in order to tailor and market their financial products correctly. Old assumptions that graduates will go on to be big earners and thus, justify being subsidised through their student days may have to be questioned.

This report examines the state of the student and graduate finance market, focusing on current account and credit provision. It assesses the market drivers that have shaped the Higher Education landscape over recent years, governing student and graduate income and expenditure, and ultimately their financial needs. The report analyses the make up of the student population, shedding light on the type of qualifications obtained in Higher Education, and assessing student population trends. The overall size of the sector is detailed, both in terms of the number and types of students in the marketplace and the potential value of their business. In addition, this report assesses the student and graduate financial products on offer from the key players in the market, and assesses the latest advertising trends in student and graduate banking. The Consumer section looks at the various issues concerning former and existing students, including what made them choose which provider to use for student banking, whether they were loyal to that provider after finishing their studies and the differing levels of financial product ownership among students and non-students. The report concludes with an overview of the future for this market, and a forecast of the likely future size of the student market.