Youth banking

Fintechs have created several innovative and intuitive ways to create technology based applications that appeal to younger children. These use different techniques like gamification to advance financial literacy and a savings culture from an early age. These range from virtual bank accounts to gamified mobile education platforms

Banks have long recognized the value of segmenting their client base, although much of this has resulted in very broad segments in which there is much variation. They have also recognized the stickiness of families who bank together, particularly by encouraging banking for younger family members. However, these offerings have tended to be reasonably low cost banking accounts as a means to create awareness on savings

The advent of technology now being available to increasing younger children implies an earlier opportunity to advance financial literacy and a savings culture from an early age. The fintech field has created several innovative and intuitive ways to address these, albeit not always using an actual bank account. This presents a significant opportunity for traditional banking institutions to engage with younger clients and create brand loyalty and awareness.

Some solutions

• Financial literacy and saving game for youth clients linked to a bank account
• Child savings account integrated with incentives to save
• Digital tool to build loyalty in children by linking allowance to tasks
• Online piggy bank for children to allow safe internet purchases using Paypal
• Online bank app for children while teaching financial education in a fun and intuitive way

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