Citizens Financial Group Introduces Digital Student Banking Center
Citizens Financial Group, a prominent regional bank based in Providence, Rhode Island, has taken a significant step towards the optimization of its relationship-focused strategy. The company, with a total asset of $218.3 billion, has unveiled an innovative online student banking center. This center aims to provide comprehensive guidance, tools, and banking products to students and their families, assisting them through the college planning process.
The launch of the digital student banking hub comes on the heels of Citizens’ acquisition of College Raptor in September 2022. College Raptor, an online college search and comparison platform, was established in 2012 and has been instrumental in aiding students in their college planning endeavors.
Components of the Student Banking Hub
The student banking hub offered by Citizens Financial Group encompasses three main components. These include free articles and webinars providing insights into college, financial aid, and life after college. The hub also presents digital tools that enable students and their families to search for and compare colleges, scholarships, and financial aid packages. Lastly, it features banking products tailored to students, such as checking accounts and student loans.
Aiming for a Holistic Approach
The primary goal of Citizens Financial Group is to establish itself as a trustworthy resource for students and families as they plan for and invest in higher education. In doing so, they aim to create robust connections and, in turn, sell more products to their existing customers.
Chris Ebeling, head of student lending at Citizens since 2021, expressed this sentiment during an interview with American Banker. “We’re trying to be more deeply engaged with our existing customers, which we haven’t done well in the past,” Ebeling stated, adding that engaging and retaining students from affluent households could potentially transform them into future affluent customers of the bank.
The Broader Picture: Relationship Banking
Citizens Financial Group is among the few U.S. regional banks that have carved a niche in student banking. Their focus on relationship banking extends to their 2-year-old private bank, which has been successful in growing deposits and assets under management. They aim to provide comprehensive wealth management products and services to their customers.
The bank’s venture into student banking comes amidst reports of the Trump administration considering selling some federal student loans into the private market. This move is speculated to be a strategy to reduce the amount of student loan debt on the government’s balance sheet. However, analysts at Compass Point Research & Trading have expressed doubt that the government could unload federal student loans without providing a guarantee.
Looking Ahead
As for Citizens Financial Group, they have refrained from commenting on whether they would be interested in buying federal student loans from the government. Nevertheless, they have offloaded certain student loans that didn’t align with their current relationship-building focus earlier this year. By the end of September, the bank expected to be fully rid of its purchased education loans.
The new student banking hub introduced by Citizens Financial Group is a testament to their shift in strategy. As Ebeling puts it, the bank has transitioned from a narrower “moment of need” mindset to a more holistic approach. This shift is evident in their comprehensive tools and resources, such as the “college match” tool, college rankings, a “career finder” application, and a free student loan calculator. These resources aim to provide students and families with a comprehensive understanding of their options for higher education and post-graduation loan repayment.
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