Assessment of the banking behaviour of Generation Y university students and the future of retail banking in North Central Nigeria

Over the past decade banks in Nigeria have been forced to look for new revenue streams as newbusiness models, technological innovations and non-traditional competition have transformed the banking landscape. Amidst all this change, a new generation has come knocking on their doors. They are in the age group of 18 to 30 years and often called Generation Y (Gen Y for short). This study therefore, assessed the banking behaviour of Generation Y students and its effect on the future of retail banking in Nigeria. The data for the study were collected using questionnaire administered to 500 university students in the four (4) major higher institutions in Plateau State (UniJos, Plateau State University, Pla-Poly and College of Education Pankshin). The data was analysed using descriptive statistics while structural equation model was used to test the hypotheses. The result indicates that retail bank fees/price integrity, unique and Innovative products, ease of use and system quality influences Gen Y banking behaviour and that this banking behaviour have a significant effect on the future of retail banking in Nigeria. Based on these findings, it was recommended that retail banks should refocus their attention their attention on the banking needs of this generation of customers to gain a better understanding of what influences their behaviours. This will compel retail banks to take a closer look at their procedures and strategies in order to manage the fast-evolving needs and expectations of this generation.