How bank fintech teaches children to handle money?
82% of teenagers aged 14 to 17 years already have pocket money – to such conclusions came employees of analytical center NAFI as a result of joint special project with QIWI. As it turned out, almost half of those who participated in the survey use an electronic wallet, 42% – a bank card, issued not on parents’ name. Most often, students buy themselves food and drinks, lay up for large shopping and entertainment. It is worthy of note that the level of financial literacy among children is sometimes higher than that of adults. And yet, most parents believe that the banking fintech should be available to the younger generation only after the age of 18.
Bank fintech is a wide field for activity
The financial relationship between parents and children becomes the main for many banking fintech products around the world. So, the start up Greenlight from the USA launched smart cards for students and attracted one hundred thousand users for 6 months. The highlight of the service was the opportunity to list places where the child can pay with a card. For example, it is possible to pay in grocery near the house, and impossible in fast food. The system gives parents data about what their child wants to buy, for how much and in what store. Adults have the right to approve the payment or not. They can also teach the younger generation to make savings by offering their bet on the savings account. In Britain there is a similar service GoHenry. The Pennybox program offers parents to expose children tasks, pay for their fulfillment and monitor the achievement of goals. Children can not only earn small pocket money, but also compete with their peers in achievements and compare the remuneration received for housework. Finnest is designed to improve financial literacy. Children can see how their savings grow, learn to make reasonable decisions and plan the budget.
Gradually, this trend comes to domestic banks: many not only offer to open a children’s card, but also to install special mobile applications.
In 2018, three major Russian banks launched their applications for the younger generation. On 1 September Sberbank released the SberKids program. The Sberbank’s virtual plastic with online banking is issued on a child’s name. You can create accumulations, watch training videos and pass tests to see how to use money more rationally through the application. It is impossible to transfer funds from the card or withdraw cash. Such children’s service was developed by Post Bank too. Their product is Post Bank. Junior and implies the use of a virtual account by the child through program on the phone. Payments in stores can be made by smartphone and withdrawal of cash is possible only in “native” ATM via QR-code. Parents at any point in time can monitor what the child spends money on and allow or prohibit any payment. Tinkoff Bank has Tinkoff Junior – unlike competitors, here the child is given a real plastic card in conjunction with the application for smartphone. Here you can transfer funds to other accounts, and make purchases.