It's a difficult thing in the digital world for banks to attract young consumers — and garner the loyalty of kids while they're young. U.S. Bank has found a promising solution through a partnership with fintech Greenlight. By integrating Greenlight's accounts and services into its own mobile banking app, U.S. Bank aims to attract the next generation of customers while providing valuable financial education and practical money management experience for kids The partnership addresses a critical gap in traditional banking offerings: the lack of transaction accounts for children. With Greenlight's debit card and money app, kids as young as 10 can learn to handle money and transact cashlessly, all while being subject to parental oversight. Parents can set spending limits, monitor transactions, and establish savings goals for their children, fostering financial responsibility from an early age. U.S. Bank sees two key benefits in this partnership. First, it differentiates the bank's "Bank Smartly" accounts, potentially attracting and retaining depositors who value financial education for their children. Second, by engaging with kids through Greenlight, the bank hopes to establish itself as the go-to institution when these young customers are ready for their first checking account. Greenlight's Brandon Horne, general manager of partnerships, emphasizes that the company's bank and credit union partnerships are an additional channel for growth, not a strategic shift. By embedding the parental experience in the bank's app, Greenlight gives financial institutions more ownership in the customer experience and facilitates a smooth transition as kids approach adulthood. Learn more in the full article by Steve Cocheo:
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Teen Banking 💥💥💥. 2M young customers🚀🚀🚀! Revolut with more than 40 million customers around the world, has announced that its <18 app for 6-17 year old now has more than 2 million young customers worldwide — jumping to a total of 3.5 million worldwide when including guardians (see here https://lnkd.in/e-nJ8JBz). This news is nothing short of groundbreaking for legacy banks. So, how did Revolut pull it off? It's quite simple, really if you consider it. They seamlessly integrated their teen offering into their existing services, making it a breeze for current customers to hop on board alongside their checking account. No rerouting, no introducing another brand—just a focus on essential features that matter most to kids and parents. Revolut is riding the wave of features like Pockets (or sub-accounts) for saving towards specific goals and Spare Change round-ups, all while boasting a dedicated app tailored specifically for kids, distinct from their parents'. But let's not overlook the importance of the basics. Both parents have the power to manage card settings, not just one, and they can add funds in real-time from their checking account, bypassing the need for a debit card or ACH transfer. Most teen banking solutions out there won't be able to provide that - you should check... You're a Community Bank / Credit Union and in the market for a teen banking solution, these points are worth considering, but why stop there? Explore more products and features! We Agora (Financial Technologies formerly Agora Services) have built the most advanced white label teen / parent banking solution 💡 Your Brand, Your Customers (not a co-branded solution) 💡 You Keep The Deposits (Yes, You will keep the deposits...) and Own The Revenues 💡 Fast Track Deployment And that's not all! Our solution comes packed with features that truly make a difference: ➡️ Control by both parents ➡️ Real-time funding from your checking account ➡️ Financial Literacy ➡️ Virtual Cards for enhanced security ➡️ Cash Deposit at retailers ➡️ Exclusive Innovative Banking Features (sub-accounts, shared accounts...) ➡️ Chores ➡️ Donation program ➡️ Tree Planting program ➡️ And much more! You want to know how to offer the best teen / parent banking solution to your customers? Contact us. #digitalbanking #corebanking #bankingsolutions #payments #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #embeddedfinance #nichebanking #sharedfinance #teenbanking
Revolut surpasses 2M young customers worldwide on
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Investopedia Top 100 Financial Planner * Author * Forbes Contributor * FinTech & Financial Literacy Advisor
Copper Banking the 'Best Kids Checking Account' - way to go team!! #financialliteracy #getcopper #finlit #financialeducaiton #teenbanking #fintech "If you’re intent on opening a true checking account for your kid, Copper is the best option on the market right now. The account has virtually no fees, robust education features, and beyond-banking capabilities, including guided investing. Copper is a kid and teen-friendly mobile banking solution designed for kids. The Copper app and debit card teach teens how to make smart financial decisions by creating a platform for parents and teens to connect and learn together." https://lnkd.in/eMvWdVQJ
15 Best Bank Accounts for Kids Under 18 (Checking & Savings) - Rates for 2023
https://www.moneycrashers.com
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Boucoup – The hidden benefits of family banking apps. Kirk is a parent who cares about his children’s financial education. But he kept running into a common issue: His kids didn’t care about their traditional banking statements. A bank statement once a month – doesn’t compete with constant digital disruptions. Their lack of interest highlighted a bigger issue: Finances aren’t engaging. Especially not for younger generations. Unfortunately, this wasn’t just Kirk’s problem. Nor was it his kids’ problem. Why? Because it meant the credit union didn’t know how to engage younger members. This meant the CU couldn’t count on their members’ children becoming loyal members as well. They were missing a big possible way to grow. After all, about 50% of teens don’t have banking accounts—that’s quite an opportunity! So, what could the credit union do? It met with Boucoup. Boucoup is a family banking app designed specifically for credit unions. Boucoup offers a kid and parent-friendly digital experience. Real-time alerts, educational tools, and parental controls over spending. Deploying Boucoup made an immediate impact on Kirk and his kids. They became more involved and informed about their finances. They could see the impact of their spending and saving decisions in real-time. The CU saw increased growth, product penetration, and improved loyalty… Especially among kids, teens, and their Millennial and Gen X parents. The CU also saw the average age of its members lower for the first time in decades. After all, kid and teen accounts converted to full member accounts when they turned 18! Boucoup’s success is part of a big trend toward financial empowerment and education for children and teens. One hidden surprise – Loyalty from Gen X and Millenial parents went way up and the CU captured a bigger share of wallet. Offering tools like Boucoup ensures a more engaged, educated, and financial loyal member base. Boucoup addresses the needs of parents like Kirk and the strategic goals of the credit union at the same time. CU 2.0 BankingON Chris Otey Alexey Krasnoriadtsev Aaron Villarreal Rick Cranston #familybanking #memberloyalty
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How can you start courting new customers while they’re young? U.S.A Banks thinks it has a key part of the answer, based on a fintech partnership.📱 As competition among banks to onboard customers heats up, especially to attract Gen Z, some U.S banks have partnered with FinTech companies. These partnerships focus on financial literacy education combined with practical experience in cashless payments, budgeting, and money management, under parental spending control. 🧑🎓 Building a Reason to Start Thinking of U.S Bank as Home🏦 ✅These banking services are available for free to young customers with "Smart" accounts, which offer overdraft benefits and a rewards program. Debit card is a set of training wheels.💳 ✅These new smart accounts the account has helped inculcate children in how to handle money and also in simply learning to transact cashlessly, as the card can also be loaded into the Apple Pay and Google Wallet digital wallets. Serving Parents by Teaching the Kids, Attracting the Kids for the Future. 🚸 ✅The app allows parents to instantly send funds to their children, set up automatic payments like weekly allowances, and control where and how much the debit card can be used. Parents are encouraged to set spending levels and savings goals with their kids. This approach helps teach kids money management and encourages them to choose U.S. Bank for their first checking account in the future.💵 #digitalbanking #customer #onboarding #debitcards #minor #smart #accounts #financialletaracy #innovation #banks #fintechnews #fintech
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A fintech founder once told me why Daniel Liang’s Get app, while obviously useful, is patently uncommon. “There’s just very little money to be made when your target market are teens,” he explains. Banks, therefore, aren’t interested to develop such products further, much less be solely guided by principles and hope for a better future. When you look at your spending habits today, I am 100% sure they’re informed by your financial history as a child. For me, I’m a chronic saver because growing up, I was always told that the family don’t have enough. All my life I’ve scrimped and saved. Even when my salary doubled or tripled, my spending habits didn’t change. Friends are surprised when I tell them I save 80% of my income. “How?” they ask. It’s not how — it’s more a foreboding joy. What if I buy that phone today and tomorrow I’m jobless? What then? What if I buy those shoes and tomorrow the money I’ve saved up gets wiped out (ridiculous — I know). In Singapore, we’ve always been taught how to save — not how to spend. According to a Singapore Department of Statistics report published in 2022, personal savings increased almost threefold from $36 billion in 2011 to $106 billion in 2020. Personal savings rate had also risen sharply from about 35% in Q1 2020 to a record high of 51% in Q2 2020 amid the COVID-19 pandemic. And while we’re a nation of savers, we’re also a nation saddled with credit card debts. According to the Straits Times, the same report also revealed a jump in credit card debt levels throughout 2022 to its highest since before the pandemic. How did we get here? How did a population whose first brush with money was Smiley the Squirrel (the mascot of POSB school savings program, introduced in 1983 to encourage students to save money) get to become a population saddled with Bubble Tea debts? The answer, I theorise is that as kids, we were deeply indoctrinated with valuing money as precious good that when we have adult cash, we squander because we don’t know how to spend it responsibly. It’s why I’m so impressed by Liang’s Get app that puts the power of spending directly into the hands of teenagers and young adults but still within some measure of boundaries. For him, Get is a way to reinforce the idea that they are enough as they are and, at the same time, fundamentally change how they view money. It also encourages them to protect and manage their finances wisely. “Our goal,” he tells me, “is not just to educate them about financial literacy but also to help them build a healthy sense of self that transcends monetary values.” It’s this spirit of character externality that convinced me to choose Daniel Liang as my cover personality for The Peak Singapore March issue. If you’re reading this and you’re a parent, I suggest you hop on to his product and start your kids on their journey of fiscal intentionality today. Have a read.
What does Get’s VISA card for youths have to do with building a healthy and positive sense of self?
thepeakmagazine.com.sg
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Very insightful research from CCG Catalyst Consulting Group - Banks Need a New Approach to Teen Banking. According to CCG, financial institutions have three potential approaches to mobile banking for teenagers. They can either act as direct providers of teen banking services, similar to what Capital One offers. Alternatively, they can partner with fintechs offering teen banking services under the Banking-as-a-Service (BaaS) model, effectively reselling these services. Lastly, they can opt to become customers of white-label solutions offered by certain fintechs like Greenlight or Goalsetter, which claim to provide a white-label offering. But what exactly does "white label offering" mean, and how does it align with the claims? In essence, it should mean that the financial institution's end users become the true customers of the FI, giving them the sense that they are banking with their community bank or credit union, with deposits remaining at the FI level. However, the reality of these "white label offerings" can be quite different: What's the reality with these "white label offerings" out there? - it is at best a co-branded solution upon subscription (then it is fully the Fintech app & brand) - the customer receives a complimentary subscription the 1st year - the end user has to connect her / his FI account as the Fintech funding source. Agora (Financial Technologies formerly Agora Services) stands out as the only fintech (pure B2B provider - no risk of cannibalization) capable of empowering community banks and credit unions with a genuine white-label solution: - The FI institution's brand remains front and center. - The FI retains ownership of its customers and members. - Deposits are securely held by the FI, not by another partner held. - Revenues generated belong to the FI. What's more, Agora's white-label teen banking solution can be swiftly deployed within weeks, without the need for complex integrations with the FI's core systems (Finastra is already live, and other core integrations are on the horizon - ask us when your core is available). If you're interested in learning how to implement a true white-label teen banking solution, don't hesitate to get in touch with us. https://lnkd.in/eDqU_tSY #digitalbanking #corebanking #bankingsolutions #payments #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #embeddedfinance #nichebanking #ai #teenbanking #whitelabelsolutions
Banks Need a New Approach to Teen Banking
https://www.ccginsights.com
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Block just announced its 1st quarter 2024 results, and it is just astonishing and another wake up call for Legacy Financial Institutions ! In the first quarter of 2024, Block's gross profit grew 22% year over year to $2.09 billion. Cash App generated gross profit of $1.26 billion, up 25% year over year! Yes, you read it well! This is how big Cash App has become... 57 MILLION monthly transacting actives Cash App accounts, up 6% year over year. In the first quarter of 2024, overall inflows were $71 billion, up 17% year over year and 12% quarter over quarter 24 MILLION CASH APP CARD monthly actives, which increased 16% year over year. "A transacting active is aCash App account that has at least one financial transaction using any product or service within Cash App during a specified period". And Block is making it super clear on its Cash App strategy to become the primary bank account of its customers: "Cash App, with its bank partners, is focused on a three-part strategy, introduced last quarter: banking our base, moving upmarket by serving families, and building the next-generation social bank. Our primary focus in the near term is banking our base by driving paycheck deposit adoption and increasing inflows per active." Block expect to grow upmarket with families as a key vertical by offering an increasingly robust set of oversight controls to promote safety by redesigning the interface for Families so parents can more easily understand their teen’s balance, pay them, set up a recurring allowance, or modify controls and limits for their teen's account. Teen Banking ! I shared my thoughts 3 years ago that Block would emerge as the true victor among challenger banks (see my post link in the comments below), thanks to Cash App but there is the Sword of Compliance hanging over Block (previous post shared with link below). If Community Banks and Credit Unions aspire to be able to compete with Square and others, they must adopt a challenger bank core technology platform and adopt niche strategies and features. Merely digitizing (launching a new app or adding a online onboarding) is not sufficient; they need more... You're looking for the most advanced modular banking platform, you know where you can find it ! You're looking for the most advanced white label teen banking solution - same place ! Jason Mikula Efi Pylarinou Marcel van Oost Bryan Clagett Ron Shevlin #digitalbanking #corebanking #bankingsolutions #payments #fintechsolutions #digitaltransformation #fintech #baas #neobanks #challengerbanks #embeddedfintech #creditunions #communitybanks #embeddedfinance #nichebanking #ai #apis #modularbanking
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Native Americans are the most unbanked group in the country, with 16% lacking access to banking services. This can lead to a range of challenges, including difficulty accessing credit, paying for basic necessities, and gaining financial literacy. Amber Buker, a Choctaw Nation member who grew up in Tulsa, Oklahoma, experienced these challenges firsthand. When she was younger, she made mistakes with credit cards due to a lack of guidance. As she got older and worked to fix her credit, she realized that many banks didn't understand the unique needs of Native Americans. “There was a really huge invisibility gap which is something that is so common for Native people,” Buker told Tribal Business News. In 2021, after eight years in college and a banking gig, Buker, who is also an attorney, founded Totem, a startup that offers a range of financial products and services tailored to the needs of Native Americans. Totem's services are designed to be accessible to Natives who lack broadband or live on reservations or in rural areas that are so-called “banking deserts.” Totem’s technology delivers banking from the Native perspective, which for now means no monthly fees, no minimum balance requirements, and mailing a debit card where you need it to go. The service also supports Totem-to-Totem money transfers with no fees. “There's a lot of times where auntie needs 20 bucks, so being able to share funds is super important,” Buker said. “We wanted to have a safe, free account that benefits could be deposited into, and we also prioritize features that uphold Native values.” Read more via the link.
Native-owned banking startup Totem aims to close 'invisible gaps'
tribalbusinessnews.com
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Why Copper Stopped Offering Kids’ Debit Cards—And What The Platform Looks Like Now https://ift.tt/VcgMGht Until May 13, 2024, Copper was a kids’ banking platform offering a debit card and mobile app replete with educational games, parental controls and customizable spending, saving and earning features designed to teach money management skills. Copper had one of the best debit cards for kids on the market. Now, it doesn’t have one at all. The Collapse of Synapse Even before Copper discontinued its kids’ banking services, some users found themselves locked out of their accounts. This was because Copper’s banking services were provided by Synapse, a middleman between consumers and fintechs—financial technology companies that provide banking services without bank charters. Synapse has been embroiled in its own sudden, speedy downturn this spring; the company filed for bankruptcy in April, and its demise directly impacted companies and consumers reliant on its technology. This includes popular neobanks Mercury and Dave (among others) and approximately 10 million end users in total. According to Copper, it was going to cut banking anyway but didn’t intend to do so yet. The company’s CEO, Eddie Behringer, issued the following statement on May 12: “Late last week, we learned that [Synapse] is sunsetting their service imminently. Despite our prior planning, this event has forced us to close banking accounts much sooner than anticipated. We completely understand that this expedited closure period is frustrating, and we apologize for not being able to provide ample notice in transitioning your account. However, we will continue to serve our member community as an Earn-first financial app.” The New Copper Copper isn’t gone—it’s just different. It no longer provides youth banking or debit cards, has no subscriptions and isn’t only for kids (though teens remain a target audience). The “earn-first financial app” is straightforward. You collect credits when you play certain games, scan receipts, take surveys, refer friends and complete other simple activities. When you accrue 500 credits, you can exchange them for money and gift cards. Copper claims users have earned over $3.1 million by redeeming credits. Despite this shift, Copper hasn’t severed its financial education roots. It now partners with banks and credit unions to help them grow their customer bases and sponsor financial literacy instruction in schools. And the company plans to provide white-labeled family banking resources through big institutions. Our thoughts, no penny required: We’re curious to see where Copper goes and whether it leans more into education or gamified earning—or something else altogether. Finance via Forbes Advisor https://ift.tt/tc41o8b May 24, 2024 at 01:19PM
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Banks have traditionally focused on adult customers, but there is a growing recognition of the importance of focusing on youth customers as well. Youth customers are the future of the banking industry, and by building relationships with them early on, banks can position themselves to benefit from their business for many years to come. First, youth customers are more likely to be early adopters of new technologies. This means that they are more likely to use digital banking services, which can help banks to reduce costs and improve efficiency. Second, youth customers are more likely to switch banks than adult customers. As a result, banks need to work hard to attract and retain youth customers. Third, youth customers have the potential to be very profitable customers. As they start their careers and build their wealth, they will need a range of banking products and services. Banks that are able to build strong relationships with youth customers early on will be well-positioned to capitalize on this opportunity. There are a number of ways that banks can focus on youth customers via a digital approach. One is to develop digital banking products and services that are specifically tailored to the needs of youth customers. For example, banks could develop mobile banking apps that allow youth customers to easily manage their finances on the go. Another way for banks to focus on youth customers via a digital approach is to partner with schools and universities to provide financial education programs. This can help youth customers to learn about the importance of saving, budgeting, and investing. Banks can also focus on youth customers via a digital approach by using social media to connect with them and provide them with information about financial products and services. For example, banks could create social media pages that provide youth customers with tips on how to save money, how to choose a credit card, and how to invest for the future. By focusing on youth customers via a digital approach, banks can position themselves to attract and retain new customers, reduce costs, and improve efficiency. Here are some specific examples of how banks can focus on youth customers via a digital approach: - Offer zero-fee or low-fee checking and savings accounts for youth customers. - Provide educational content on financial topics on the bank's website and social media pages. - Develop mobile banking apps that are easy to use and have features that are relevant to youth customers, such as the ability to set budgeting goals and track spending. - Partner with schools and universities to offer financial education programs. - Offer discounts and rewards to youth customers who use digital banking services. - Run contests and giveaways on social media to engage with youth customers and promote financial literacy. By taking these steps, banks can build strong relationships with youth customers and set themselves up for long-term success.
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