As digital natives enter parenthood, taking their kids to the branch to open their first bank account is becoming an anachronism. So is the conventional wisdom that a banker will help guide kids’ financial education or that an early account will serve as the foundation for a longstanding relationship. Neobanks are chasing the next generation of customers and their parents, filling in a gap that banks have ignored—at the peril of losing the next generation of customers.
Kid and teen banking apps try to answer one fundamental question: What will prepare youths to manage their finances as they come of age? As such, these banking apps are built around three categories of features: