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Available online at www.buuconference.buu.ac.th
The 5th Burapha University International Conference 2016
“Harmonization of Knowledge towards the Betterment of Society”
Finance and Banking
Behavior Patterns of Thai Generation Y
Assoc. Prof. Dr. Hermann Gruenwald & Sudip Debkumar Chatterji *
Burapha University International College (BUUIC), Long Hard Road, Bangsaen, Chonburi 20013, Thailand
Abstract
Finance is getting a lot of attention in the media with financial tycoons like Donald Trump trying to conquer the
world and even the US presidency. Many dream of being the next Rockefeller or the Wolf of Wall street. There is an
increasing desire to be in finance, but few have the basic financial knowledge of accounting or even understand the
principals of banking. This quantitative research surveyed generation Y male (56) and female (156) Thai college students
from various international business degree programs. The research questions which were explored the limited knowledge
of common banking products and finance. Like no other generation, today's youth are growing up in a culture of debt
facilitated by expensive lifestyles and easy credit. The objective of this research was to examines college students’ basic
financial management knowledge and banking habits using quantitative data. Specifically, the research investigates how
college students acquire financial and banking knowledge and identifies certain factors that might later put some of these
very students at greater financial risk than others. The results provide important insight into the lack of awareness of these
students about basic financial literacy and inadequate knowledge of banking. This research will be of great importance to
finance faculty who investigate the questions about how are college students obtain their financial knowledge and skills,
and how can they bridge the gap in helping these students acquire a working knowledge of banking and the advantages
that they could obtain from such knowledge and make appropriate use of e-banking today and tomorrow. One of the key
research questions was how we can prepare business students to gain a better understanding of finance and apply the
knowledge in their personal life as well as in their studies of finance through problem based learning?
The findings of the study are of great value both to the finance industry as well as colleges and
universities offering various finance related degree programs. Banking knowledge an literacy has been found
to be low even among finance majors and the participants showed limited interest in on-line banking despite a
growing use of multimedia and smart phones in a personal setting. We addressed most of the issues in the
finding section and would like to further our discussion here. Kasikorn bank was clearly seen as first
preference by most customers due to the forced banking relationship through the affiliation with the
university, which is quite different from the banking behaviour in other countries due to different banking
regulations. 94.5% of the respondents held savings accounts in their own names this is a much higher
percentage than in the USA. Also the ownership of the account coincides with the duration of study at the
given university. The majority of students prefer branches less than one kilometre from their place of
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residence. The close proximity may also be the reason why the majority of respondents visit the bank one to
four time per week and some even more often. Interestingly enough the main reason for visiting the branch
was to deposit money, which raises the question where do college students get the money from? From what
person or type of activity. The students maintained relative high account balances without getting high interest
payments from the bank. The banking behaviour that was discovered in this study raises questions regarding
the financial literacy of the students and their financial savvy.
6. Conclusion
In conclusion we find that financial literacy is quite low and banking habits need to be developed
both in terms of personal savings and loan habits. It is concluded that a good basic understanding of finance
and banking leads not only to personal wealth but also to academic success especially in finance related
courses and in particular in studying finance. Thai universities play a major role in shaping the banking habits
of their students and heavily influence the choice of bank and type of banking and financial relationship. This
research is limited to reflect the students of the upper income families who can afford pricy higher education
in international colleges which cater predominantly to the wealthy upper class which has a different
perspective on finance and banking than low income students.
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Thai Institutions of Higher Education as the Foundation of the Banking Habits
of Thai Generation Y
Fig. 1. Finance/Banking Literacy – Finance Major Success Model
7. Recommendations
It is recommended to replicate this study with a larger sample of students from various institutions of
higher learning from throughout Thailand. It also would be of interest to compare various majors as well as
students in graduate programs and alumni. Also the ASEAN context is of great interest and a comparative
study of other ASEAN member countries is highly encouraged, and additional funding requests are under way
to explore this critical topic of finance in an ASEAN context.
Acknowledgements
The authors would like to acknowledge the role the Burapha University International College (BUUIC)
and Dean Rana played in supporting this research project and the continuous focus of BUUIC on research and
academic inquiry.
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About the Authors
Associate Professor Dr. Hermann Gruenwald received his first degree in Architectural Engineering Dipl. Ing.
(FH) from Germany, he also holds an Master of Architecture from the University of Houston (UofH), a
Master of Education in Continuing and Professional Education from the University of Oklahoma (OU) an
Master of Business Administration (MBA) from Southern Methodist University (SMU) in Dallas, Texas and a
Ph.D. from the University of Oklahoma, Norman Oklahoma USA.
Dr. Gruenwald has numerous publications in peer reviewed journals and conferences as well as several book
publications. He received millions in research funding from various government and industry sources and has
an active research agenda related to information technology (IT) and logistics. He has taught and conducted
research at the University of Oklahoma, University of Phoenix, and University of Alaska and has guest
lectured around the world and helped to establish logistics departments in the USA, the former Soviet Union,