… The future of banking isn’t denying Baby Boomers of their cheque books. It is being relevant to a generation born in a technology ecosystem that makes handling vast amounts of information, connecting, interacting, winning and having fun being primary nature. Winning is getting ahead of that notion, building trust and skills by creating experiences for them…
Roughly seven in ten parents give their children an allowance who receive on average $67.80 per month, according to a recent survey by the American Institute of Certified Public Accountants. Banks that acquire customers at a young age, through pocket money, have a great opportunity to convert and build relationships early. Banks can instill a sense of trust and value and convert them into being their main financial institute once they get their first job and have a first mover advantage when it comes to loan time. Banks also have an opportunity to pick up mum, dad, the grandparents, and the rest of the family if they get the value proposition right.
… The Commonwealth Bank of Australia got into the market in 1931 with their Dollarmites program and now attest that 20% of their savings volume is “youth related” as well as the largest loan book in the country… 90 years later, others are catching on.
Fintechs spotted it somewhat later. GoHenry in the UK, Spriggy in Australia and Greenlight in the US have all been chipping away at bank’s customers. Moroku with their ChoreScout platform has gained traction with its enterprise platform and has allowed its customers to launch much faster and with powerful features for gamification.
Kids aren’t driven by “banking needs” but through a combination of fun, learning and purpose driven goals. They understand digital currencies from game play, they expect to personalise their apps, they expect an ecosystem of support through video coaching (YouTube), they want to share the achievements on social and often want to collaborate during their play. Just as the childhood skills of controlling a joystick have created jobs for drone operators, intrinsic skills and capabilities from games/apps they use today will be expected in banking’s next generation interfaces. Banking the youth is less about the account and more about creating a model for next generation adults now, building great beliefs and values around money and stacking habits.