From Z to A: The New Battleground of Neobanks & FinTechs
Updated: Feb 24, 2021
Bye Millennials, Hello GenZ & Gen Alpha! Here are the neobanks catering to the vibrant youths of the world and ushering in a new era of digital banking - one that's a lot more fun and full of learnings.
Coming of age in a technological boom makes today's Z & Alpha generations digitally savvy like no other. It's only natural that their 'financial coming of age' will be a much different experience.
From 'How Much?' to 'How?'
Bringing in the parental perspective, in a digital age like ours, the concern of 'How much pocket money should I give my child?' (amount) has evolved into 'How should I give it to them?' (channel).
Over the years, the segment has seen a bubbling emergence of new fintechs and neobanks globally, that can be broadly classified into two types:
Kids & Teen banking as a 'core-offering' - GoHenry, Spriggy, Step - Fintechs partnering with a licensed bank or payments provider on the backend.
Kids & Teen banking as a 'sub-offering' - Tinkoff Junior, Kakao Bank, Rubies Junior - Licensed neobanks with a broader audience.
The products themselves are tailored to fit the activities of the young customers
For the Kiddos - Ex.: Mozper, Gimi, Canvas - From incentivised chores to savings, parent-controlled allowances & investing lessons, these neobanks have it all covered.
For the 'Young Adults' - Ex.: TNEX, Zelf, Bettr - The variety of catchy and hashtag worthy services include colourful debit/prepaid cards, P2P payments among friends and exciting shopping deals.
Emerging markets like Latin America, Africa, the Middle East & South East Asia are gaining prominence for their untapped potential and incidentally, these markets also have promising youth demographics.
Startups in these geographies are promoting healthy financial habits among kids & teens with parental support and paving the way for the next digital generation.
While GenZ continues to take over the world, these will be the enablers supporting them behind the scenes. A proud pat on the back for these fintechs 👏🏼
Don't see a neobank you think should make it to the map? Let us know at email@example.com and we'll be happy to include them in future iterations.