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
Related content
Six Alert Flaws That Banks Can Fix Today
Alerts enable banks to initiate meaningful digital conversations and entice customers to log in to learn, seek advice, and act. But a Javelin Strategy & Research analysis of eight ...
Credit Unions in Business Banking Part 2: The Path to Digital Maturity
Credit unions setting their sights on small-business banking face many obstacles, including the need to upgrade digital banking to serve the money management and financial health n...
Credit Unions in Business Banking Part 1: An Industry Eyes Opportunities to Grow
Credit unions stand at a crossroads in business banking. As their consumer membership base gradually erodes, many are turning to business services as a lifeline for growth. But can...
Make informed decisions in a digital financial world