Just four months after the product was launched in Ireland, about 40,000 young people now have a Revolut Junior account.
The challenger bank Revolut launched an app aimed at kids between the ages of 7 and 17. The accounts come with their own bank card for the child to use and it integrates directly with the main Revolut app on the parent’s side.
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The current data from the digital banking app show that the concept of junior account has a huge potential. Since the launch of Revolut Junior on May 13, an average rate of sign ups was more than 2,600 a week – or 380 per day.
Revolut claims that the app is a safe way to teach kids and young people money management skills through tailored tools and advice, while the accounts are 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.
Aurelien Guichard, product owner, Revolut Junior, says: “Conversations about money typically start at home and we believe these skills are gained little by little, through experience and with help of parents and guardians.
“Revolut Junior ‘grows’ with kids until they are eligible for a standard 18+ account so that once they are independent, they have the financial skills and literacy to avoid potentially costly mistakes.”
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.