Next hot (like our morning coffee) topic of discussion these days is the hype surrounding Junior accounts.
Junior accounts are addressed to parents and their children that need to take banking to the next level and start managing and utilising banking products from a young age. Financial literacy is important at any age and if you can kick start this education from a young age, it will sure make a difference later on. For example, kids nowadays can go to the local supermarket and buy with their junior debit card, topped-up from their parents.
But let's see what are the main functionalities found in several banking apps that offer Junior Accounts, and that have drawn our attention.
- Ordering a Junior Card (debit or prepaid)
It is a cool way of letting your kid freely make their own purchases, either online or in physical stores, but still maintaining the appropriate and much needed control as a parent.
Cards can differ for girls or boys. You can customize them by printing cards with their favourite Disney characters on them. The full name of the kid is printed on the Card, which would make any of us feel cool to be honest.
- Set Rules and Limitations
The parents can apply limitations to the card purchases of their children, such as disable contactless payments, online payments, payments to certain merchants, (gambling companies, online casino or any other sketchy webpage) apply maximum payment amount, etc. Another interesting feature a parent can choose is the parent review (accept/reject purchase on the spot) each payment, so that the parent can have a close eye on the purchases made.
- Have total control
The parents can have total control over the junior account by funding or withdrawing money and funds from it at any time they wish. Does your kid need extra money? Transfer them on the spot and the funds will be available immediately. Too much money on their account? Withdraw it in seconds.
- Set an allowance
Part of their financial literacy needs to be them learning how to manage their money throughout a period of time. Kids need to understand the value of money by learning that they cannot go spending it around and ask for more anytime they wish. No worries, as a parent you can set a weekly or monthly allowance, so that your kids learn how to organize and manage their funds until the next allowance kicks in.
We hated them as children, now they have come back as an important feature in junior accounts, in a very nice camouflage package. The parents set up chores for a kid in return to a sum of money, the kid must fulfil it and mark it as completed. Then the parent must review it and either mark it as completed and the funds are transferred to the junior account, or is returned to the kid again to be executed.
Junior Accounts have just started becoming popular, so we are expecting lots of new functionalities to arise in the coming years. We will very soon though, write all about the existing Junior accounts currently in the Market. Is it easier to provide better UX to children than it is to adults? Stay tuned to find out!
All features described above are already analysed and available in FinTech Insights. We keep up with the effort to describe them and capture them in high resolution videos to uncover your competitor’s best kept secrets. See everything for yourself by booking a free Demo.
Become the bank your customers crave. Or that their kids do, whatever suits you.