Analyst Take: How millennial parents will bank Gen Alpha kids

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.

The App Experience

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:

  • Parental oversight and security
  • Tools for kids and teens
  • Shared functionality related to household tasks and goal setting

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