Case Study 2

Question 1

Essential information about Olga:

Answer 1

• 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

Question 2

Possible Olga short-term aims/events:

Answer 2

• 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

Question 3

Possible Olga long-term aims/events:

Answer 3

• Unemployment/redundancy
• Debt?
• Get married/family
• Buy house - mortgage/building and contents insurance
• Car - tax/insurance
• Pension planning
• More travelling

Question 4

Olga mandatory expenses:

Answer 4

• Council tax
• TV licence
• Income tax and NI

Question 5

Olga essential expenses:

Answer 5

• Food/basic clothing
• Rent
• Utility bills
• Credit card bill
• Building insurance

Question 6

Olga discretionary expenses:

Answer 6

• Money for travelling
• Socialising
• Extra food/clothing
• Saving for gifts/emergencies

Question 7

Similarities between the three providers:

Answer 7

• 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.

Question 8

Differences between the three providers:

Answer 8

• 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

Question 9

CurrencyFair pros:

Answer 9

• 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

Question 10

CurrencyFair cons:

Answer 10

• 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

Question 11

NatWest pros:

Answer 11

• 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

Question 12

NatWest cons:

Answer 12

• £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

Question 13

Post Office pros:

Answer 13

• 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

Question 14

Post Office cons:

Answer 14

• £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

Question 15

CurrencyFair’s social responsibility:

Answer 15

• 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

Question 16

Post Office’s social responsibility:

Answer 16

• Believe in diversity, inclusion, equality and fairness
• Digital Inclusion Programme - Dry Mixed Recycling Scheme
• Business in the Community Rural Action Group

Question 17

NatWest’s social responsibility:

Answer 17

• Promise to become Britain’s most helpful bank
• Customer Charter
• 25,000 MoneySense for schools lessons
• Devote 15,000 staff days each year to help local communities
• Mobile banks to serve remote areas
• Queue Busting programma