Chore Scout – Children Banking

The future of banking isn’t denying baby boomers of their cheque books. It is being relevant to a generation born in a technology ecosystem that makes handling vast amounts of information, connecting, winning and having fun, primary nature. Welcome to Children Banking

Banking Children and Their Families

Deemed “not profitable enough” by traditional financial institutions, the “pocket money market” has massive potential for scale. Parents want to teach their children financial literacy and responsibility. This is a huge opportunity for financial institutions to demonstrate leadership and capture the next generation of customer and their families.

Chore Scout is a white label children banking for banks and credit unions that want to bank the next generation of customers and their families on a foundation of strong money habits.

GENERATION Z - THE LARGEST COHORT IN THE HISTORY OF THE PLANET

While millennials today are having their moment, the next decade will be shaped by the maturation of the largest generational cohort in history — Generation Z. This cohort of people between 10 and 24 years old comprises 1.8 billion people, making up 24% of the global population.

As the EY Megatrends report informs us, while Gen Z is generally more progressive on social issues than preceding generations, important differences in attitudes emerge. Gen Z is socially conservative and feels more pressured to succeed. Brands will do well to identify the important distinctions among Gen Zers to serve this global cohort effectively and begin building that intelligence and rapport now.

The next decade will be shaped by the maturation of GENERATION Z, the largest generational cohort in history

Source: EY analysis of World Bank Papulation Protections and Estimates data for 2020; age ranges adapted from Pew Research for Globally Consistent data.

The Business Case

Tech giants and banks, like CBA who attribute $10bn of their market capitalization to a strong youth banking program, know that introducing customers to your brand early can be an economic and highly sticky way to attract customers, with a high conversion to MFI. Rather than spend years and millions of dollars to get there , banks can deploy ChoreScout within months.

ChoreScout Case Study

Financial Fitness for Families is Paramount

The importance of financial education for adults and children has been acknowledged throughout the world. Financial products and services have become increasingly accessible to the general population. However, their use is complex and hard to understand for an average individual who has little or no financial education.

The importance of financial education for adults and children has been acknowledged throughout the world. Financial products and services have become increasingly accessible to the general population. However, their use is complex and hard to understand for an average individual who has little or no financial education.

Financial fitness, based on daily habits, enables individuals to improve their financial decision making. This fitness benefits individuals, the bank that delivers the platform, the economy and society broadly. Danes and Dunrud (2013) argue that “… life-long benefits of teaching children good money habits make it well worth the effort. Children who are not taught these lessons pay the consequences for a life-time”.

Parents are the gateway. 87% of high school student acknowledge that they consider their parents as a primary resource to seek financial information but only 22% reported to talk frequently to their parents about money. Banks can step in, facilitate the conversation, build trust and market share.

Few financial institutions focus on children as this market segment has been perceived for a long time as difficult and challenging. Yet those that pioneer in providing financial fitness through digital to children enjoy a wide range of benefits from creating a socially responsible reputation to greatly increasing their customer base before competitors realize the opportunity. Children have more chances to become financially literate adults if they are exposed to appropriate financial education programs and activities from their childhood. This is supported by general sociology that indicates that our beliefs are baked by early teens if not before. Friedline and Elliott (2013) concluded that young adults who had a savings account as a child are two times more likely to have a savings account in their adulthood.

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