Why Teen FinTechs Are Attracting Young People and Their Parents
Money Walkie, Xaalys, Revolut Junior… Financial solutions targeting young people are slowly spreading across the territory. But the recent closure of Vybe, which went out of business at the end of July 2022, raises questions about the viability of their model.
Between payment, money transfers and reimbursements via smartphone, the world of finance has been able to open up to new technologies to offer new consumption methods to businesses and consumers such as ourselves. And, in this game, young people are more and more demanding. The offers of so-called traditional banks do not suit them, they are looking for new user experiences. A boon that several startups are trying to seize, by developing offers designed for those under 18.
“Banking for young people is an old subject… There have been several attempts, including the creation of an appendix to the parents' account, but the successes have been modest” , comments Alain Clot, President of France FinTech. Since 2019, a few neobanks have themselves complied with the exercise by developing offers for 7-18 year olds.
financial educationseduced again
Even if their solutions may differ, all point to the same desire on their site: financial education. Money walkie talking about acquisition « de smooth financial independence » and the development of « good consumption reflexes ». An argument which is also found in pixpay. For its part, Xaalys describes its solution as « usimple and fun way to teach teens the value of money.
The marketing message is clear. But does it really reflect reality? For the three experts the answer is unanimous. "Uses are really developed around financial education", begins Alain Clot. Both for parents and children, as all of these apps are parentally controlled, whether by setting a withdrawal/payment cap or receiving a notification every purchase.
In detail, Pixpay offers five methods for teenagers to manage their budget and save as well as a kitty to teach them how to save for a purchase or a particular event. To better manage their daily expenses, young users have a view of their balance in real time. For their part, parents have their own application to establish a regular payment, to the mission or simply to manage the uses of their children.