Today's parenting involves instilling values and also wealth-building factors. The digital world has and exposes children and young adults to finances through several daily activities that involve transacting to gain services. Many financial institutions also have strategic ways to help children save. The majority of banks introduce piggy banks or junior account to build the saving spirit in childe and young people. Fintech Research Company is also implementing new ways to incorporate children into the Fintech financial system.
The new generation banking system and fintech apps target and create a new client base focusing on children under 18 years? The practice doesn't just help in tracking their money and expenditure. But it's a way to help children's financial skills like saving and compound interest rates. Fintech research shows that children and young adults under 18 years comprise 41 percent of the country's total population—this a potential market for Fintech and a critical area of focus for the ecosystem.
The tech industry has several startups, such as Birdfin. It's a unique Fintech app that trains children on money management skills through games. FamPay, this is India’s neo-bank for children and teenager. Fintech allows parents to track the spending and saving of the teenager. Finin is also an app developed for children and teenagers. To help in expenditure and saving funds, users learn money-related information for the app. There are also payment apps such as Walrus.
This kind of fintech apps helps develop a better money mentality in the children as they grow. Insights from financial industries show that the children and teenager. They will continue to use such apps even in the future. This increases the fintech market, providing the untapped potential for the children.
Features and benefits of children fintech apps
- The pocket money is transferred from the guardian’s/parent’s mobile or bank account to the child’s account.
- The parent can track every expenditure from the app.
- The apps assist children in setting goals like saving to buy what they desire after some period.
- It's an excellent way to earn money after completing chores set by the parent.
- Its transparent app which giving parents details on saving and expenditure.
Today many startups are integrating children-specified features. The apps assist the student in making informed decisions on how they spend. Students can also book their canteen meals, pay after-school tuition using the fintech apps. The fintech apps will also help students plan their higher education fees. They can save a certain amount for a set duration. There some apps, such as EduFund, which encourage students and parents for their higher education. It’s a great way to build a saving culture in children and parents.
However, parents should note children access financial apps and independently spending. This doesn't just help them gain discipline. It's a way to help instill financial knowledge. The fintech apps educate and train children and young adults on finances. They learn the basic features and financial jargon, instrument, and more. The concept won't surprise them in the future, but they can learn to handle their money well.
In behavioral research conducted it show the Gen Z will likely use digital banking system for money transaction. A survey by Forrester shows that 38 percent of Gen Z would prefer to use mobile and digital platforms to communicate with their banks. Fintech has discovered several features which the children and young adults prefer, which should be included in the fintech apps. Using digital finance platforms will help the children become more diverse and involved in financial tools such as online banking, investment, and insurance.