Case Study 2 Flashcards
1
Q
Essential information about Olga:
A
- 21 years old (young adult)
- Going on holiday for weekend in Berlin
- Looking for foreign currency with good exchange rates
- Works for local community organisation
- Promotes social responsibility
- Keen on institutions with good customer service
2
Q
Possible Olga short-term aims/events:
A
- Buy foreign currency
- Go to Berlin - travel insurance
- Have sufficient funds for trip
- Pay mandatory and essential expenses
- Continue her job - income tax and NI
3
Q
Possible Olga long-term aims/events:
A
- Unemployment/redundancy
- Debt?
- Get married/family
- Buy house - mortgage/building and contents insurance
- Car - tax/insurance
- Pension planning
- More travelling
4
Q
Olga mandatory expenses:
A
- Council tax
- TV licence
- Income tax and NI
5
Q
Olga essential expenses:
A
- Food/basic clothing
- Rent
- Utility bills
- Credit card bill
- Building insurance
6
Q
Olga discretionary expenses:
A
- Money for travelling
- Socialising
- Extra food/clothing
- Saving for gifts/emergencies
7
Q
Similarities between the three providers:
A
- All incorporate CSR
- PO and NW do home delivery
- All offer wide range of exchange rates
- PO and NW have branches
- All have good online customer service
- All do not force products onto customers.
8
Q
Differences between the three providers:
A
- Different exchange rates
- CF have 18 foreign currencies, PO have 80
- NW have wider range of products
- CF is regulated by Central Bank of Ireland, NW & PO are regulated by Bank of England
- NW buy back left over currency
- Different times of exchanging currencies
- NW and PO offer delivery service
- NW emphasise more on how they value customer service whereas PO value social responsibility
9
Q
CurrencyFair pros:
A
- Trading with customers, not organisation
- Competitive rates - you choose
- 24/7 access
- Cheapest to buy 800 EUR
- Hold funds so customers can easily and safely exchange currency
- Save money - 8x cheaper than banks
10
Q
CurrencyFair cons:
A
- No delivery
- Only 18 foreign currencies
- No buy back guarantee
- Online - no human interaction
- £3 flat fee
- No guarantee you will get rate you want
11
Q
NatWest pros:
A
- Customer Charter and Queue Busting programme - good customer service
- Emergency next day delivery
- Buy back guarantee
- Home delivery
- Branches
- Wider range
- Trusted bank - regulated by FSCS
- Can order 10 days in advance
- Wide range of currencies
- Currencies are commission free and no hidden charges
12
Q
NatWest cons:
A
- £5 fee for orders less than £500 for delivery
- High rate charges
- Queues are long
- Next day branch delivery cost £5
- Don’t deliver next day on Saturday and Sunday so need to order by Thursday 2pm
13
Q
Post Office pros:
A
- Voted ‘Best foreign exchange/travel money retailer’
- 0% commission
- Home delivery
- Branches
- CSR - Digital Inclusion Programme, Dry Mixed Recycling Scheme, Business in the Community Rural Action Group
- UK’s largest retail network
- More branches that UK’s banks and building societies combined
- 80 foreign currencies
- Order online and collect in branch
- Buy from £400-£2500
- Royal mail next day delivery
- Most trusted
- Most CSR involvement
14
Q
Post Office cons:
A
- £4.99 fee for orders less than £500 for delivery
- No buy-back guarantee
- Charge no fees but profit from less competitive exchange rate
- If you buy less you get worse rate
15
Q
CurrencyFair’s social responsibility:
A
- Peer-to-peer exchange empowering customers to set their own rate
- They hold the funds so customers can exchange safely
- Try to get fairest rate for customers
