Today’s parents are working to give their children a responsible understanding of money management and financial literacy by opening youth accounts. Research shows that 63% of parents have opened a checking or savings account for their children. It is also found that Gen Z and Millennials are starting this process earlier than Gen X and Boomer parents before them. Thirty-five percent of Gen Z and Millennial parents open an account for their child before their child’s sixth birthday, while only 20% of Gen X and Boomer parents did the same.  

This growth in youth accounts is a valuable opportunity for banks and credit unions to build multi-generational relationships and retain customers long term. Research shows that 45% of youth accountholders maintain their relationship with the financial institution for at least five years, and 24% never leave. To take advantage of this banks and credit unions need to build strategies and services that align with the expectations of today’s parents.  

Mobile Banking and Gamified Features

Banks and credit unions must ensure their digital platforms include features that meet the needs of families. Gamified features for things like savings goals or financial literacy are popular with young customers. These features make banking fun while promoting positive financial habits. There is also a strong demand for parental control within these apps, such as real-time spending notifications.

Partnering with Schools

Partnering with schools is an effective way to promote financial literacy programs. Banks and credit unions can also get involved in family-focused events to reach new customers and strengthen their relationships with current customers. These efforts will help financial institutions create positive brand association.  

Create Attractive Offers

Most parents who open accounts for their children choose a youth or team-specific account, rather than a standard checking or savings option. Financial institutions must ensure they are offering products tailored to parental preferences. When opening accounts, 60% of parents prefer accounts with no monthly fees.

As financial institutions work to build their strategies and programs, American Solutions for Business is ready to help every step of the way. We can help create marketing pieces and in-branch signage to help advertise programs. We can help with unique giveaway items for both parents and children.  Or we can even work to create a welcome kit to give new account holders a memorable experience.  

When banks and credit unions work to address the needs of both parents and children, they position themselves for long term success. By tapping into their existing customer base to offer youth accounts, they can benefit from stronger customer relationships and improved retention rates.

To learn more about American Solutions for Business, visit http://www.americanbus.com.