Currently sitting at a $1.2 billion valuation, Greenlight states that it serves more than two million parents and children. It claims to have saved families a collective $50 million.
The Atlanta-based fintech can monitor children’s spending, set savings goals, request cash and send children alerts when a guardian loads money to their card… it ensures kids can’t overspend and allows guardians to have full control over spending categories such as stores, restaurants and websites..
Its offering is similar to that of GoHenry’s in the UK, and Spriggy’s in Australia – its international rivals.
…. The fintech is also gearing up to rollout “a revamped app and investing tools” in the next few months.
Banking services for kids are fast becoming a trend amid both challengers and incumbents.
A number of banks have jumped on the banking for kids” bandwagon after Revolut launched its under-18 junior accounts… These include HSBC and its PayMe e-wallet for 16-year-olds and above in Hong Kong, Malaysia-based Hong Leong Bank (MLB) HLB Pocket Connect, and Irish postal service An Post’s Money Mate.
Roughly seven in ten parents give their children an allowance of around $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,” says FinTech Futures columnist, Dharmesh Mistry.
“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.”