Revolut has launched a “money management” Revolut Junior product, which can be monitored by parents.
The challenger bank’s new feature is an app aimed at kids between the ages of 7 and 17. The accounts will come with their own bank card for the child to use yet it integrates directly with the main Revolut app on the parent’s side.
Parents or legal guardians can create the Revolut Junior account for their kids directly in their app. Kids get their own Revolut Junior Visa card as well as an app, where they can check their balance and get transaction alerts.
According to Revolut, the app will be a safe way to teach kids and young people money management skills through tailored tools and advice, while the accounts will be managed by a parent or legal guardian.
Eventually, Revolut Youth users will be absorbed into the main banking platform once they turn 18. Data show most customers stick to their first bank for life, meaning “getting them first” has a huge appeal in the long-term view. It’s also seriously more expensive to get customers to switch banks than to get them banked from their early teens.
Revolut’s competitor, challenger bank Monzo, also offers 16-17-year-olds bank accounts, but no others in the market have offered features to under 18s.
Revolut plans to add more gadgets to Revolut Junior in the near future. For example, parents will be able to set a regular allowance and financial goals. Kids will get their savings options, reports, spending limits and more.
“This generation was born with a smartphone in their hand… They’ve always lived around revolutionary movements,” Kard’s Scott Gordon noted.
Sources: https://www.fintechfutures.com/2020/03/revolut-launches-accounts-for-under-18s-in-the-uk/ https://sifted.eu/articles/revolut-junior-launch/ https://techcrunch.com/2020/03/17/revolut-launches-revolut-junior-to-help-you-manage-allowance/ https://www.finextra.com/newsarticle/35476/revolut-launches-app-for-kids
