Youth Banking That’s Built for Parents
- Date:August 23, 2024
- Author(s):
- Dylan Lerner
- Report Details: 26 pages, 6 graphics
- Research Topic(s):
- Digital Banking
- Mobile & Online Banking
- PAID CONTENT
Overview
The banking industry is missing the mark with products geared for kids for a simple reason: They’re failing to listen to the voice of the consumer that matters most— parents and guardians. Rather than standard free kid-size accounts with bolt-on financial literacy, what parents really want is a youth program that provides a logical, incremental path to financial independence: saving before spending, managing cash before swiping cards, relying on debit before credit, and building credit for adulthood.
Javelin’s Youth Banking Graduation Model provides a “crawl, walk, run” framework that recommends age-appropriate financial products and digital features for children, based on input from more than 3,000 parents and legal guardians of children under the age of 18. This model provides a digital banking framework that not only meets the needs of parents but also builds cradle-to-adulthood relationships with young customers, including sought-after Gen Z consumers.
Key questions discussed in this report:
- How can FIs evolve from youth banking accounts to a youth banking strategy?
- What role does digital banking play in youth banking?
- What do parents want from a youth banking program?
- At what age do parents want to introduce financial products and services to their children?
- How can FIs position themselves as the trusted advisor for child financial development?
Companies Mentioned:
Acorns, Apiture, Apple, Banno, Block, Cash App, Chime, Greenlight, GoHenry, Jack Henry & Associates, KeyBank, NCR, PayPal, PNC, Q2, Step, U.S. Bank, Venmo, Zelle, Zogo
Learn More About This Report & Javelin
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