In this report, we look at ways to develop online/mobile banking and card-based services for the youth market, which numbers more than 100 million in the U.S. alone.
Banks typically get serious about younger consumers when they are college-bound and expected to walk into a branch near campus and open an account.
But that’s a holdover from the branch banking paradigm that few 18-year-olds recognize any more.
Tomorrow’s college freshman will arrive on campus with a bank accounts and cards already hooked to their parents’ bank via online/mobile connections. The students will continue those relationships because it’s less hassle and easier for mom and dad to maintain an uninterrupted flow of funds.
So, the key to banking young adults is to make sure they open accounts in high school or earlier. That means appealing to the parents. Once that middle-schooler opens their first account, you could have them for another 80 years!
In addition, guest authors outline why you need to pay attention to:
• Children’s Online Privacy Protection Act (COPPA) compliance by Justin Hosie, Chambliss, Bahner, & Stophel PC
• Child Identity Theft Monitoring by Matt Cullina, Identity Theft 911