19 March 2020 18:36
This story was delivered to Business Insider Intelligence Banking Briefing subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. UK neobank Revolut introduced Revolut Junior, a product targeted toward children 7-17 years of age, TechCrunch reports. Revolut Junior integrates directly with the primary Revolut app, enabling parents who are Revolut users to create a Revolut Junior account for their child. After that, their child can download the Revolut Junior app and get a Revolut Junior card.
Business Insider Intelligence The new app offers a limited interface, including the ability to see transactions in real time and configurable card settings. And parents can control their child's spending via the Revolut app, instantly transfer money to Junior accounts, disable card features like online payments, and receive a notification when their child uses their card. Revolut Junior is currently only available to the neobank's Premium and Metal customers in the UK, but Revolut plans to roll it out to more users and more countries in the long term. Revolut Junior could help drive customer stickiness by getting entire families to use Revolut. While bringing children onboard with Revolut may not be a big driver of revenue or customer engagement for the neobank, it could yield a significantly higher level of customer loyalty.
This would be a boon to Revolut, as UK consumers seem to be sticking with their bank accounts and switching banks with decreasing regularity. The amount of current account switches handled by the UK Current Account Switch Service (Cass) decreased between Q1 2019 and Q2 2019 and then again between Q2 2019 and Q3 2019, per data from Cass cited by Fintech Futures. Want to read more stories like this one? Here's how to get access: British challenger bank Revolut has launched a new banking app called Revolut Junior to teach kids financial skills. The app is for parents and young people aged seven to 17 years. It comes with a specially designed Junior card. Parents and guardians, with an existing Revolut Premium or Metal account, can create a Revolut Junior account for their children. Only the main account holders can transfer money to the Junior account. Children can make purchases using the app or card, get transaction alerts and check account balances. Is COVID-19 the catalyst for the next financial crisis? Yes, it is a huge factor No, it was going to happen anyway There will not be a crisis in the foreseeable future View Results Loading... The app is enabled with necessary parental controls. It has a separate section for parents or guardians to help them supervise and manage their child's spending. The bank said that parents can check and control online payments and receive notifications on their phones whenever their kids make a purchase using the card. Moreover, the Junior card cannot be used at certain age-restricted merchants. Revolut said that they will soon introduce additional budgeting features in the app such as setting up weekly allowance and creating vaults to manage to spend. The bank is also planning to launch the Revolut Junior app outside of the UK. Last month, Revolut raised $500m in Series D funding, at a valuation of $5.5bn. In the same month, Revolut partnered with TrueLayer to offer open banking for all UK customers. In January, Revolut rolled out an easy access savings product for the UK market, offering a competitive 1.35% interest rate. The app, called Revolut Junior, enables parents and guardians to control the children's expenditure.Bloomchain.ruthat parents can create an Revolut Junior account for their child and get a plastic card, which will be added to the account.The app has a limited range of functions. The interface is divided into two pages: on the first one, the user can monitor their transactions, and on the second one, customize the card parameters. The app offers no other options.In their turn, parents will be able to control the expenses of their children. They can make instant money transfers to Revolut Junior accounts, monitor the transactions, and disable certain functions. For instance, the guardian can disable online payments by card.Only British clients will have access to Revolut Junior initially. The company plans to expand the service to other countries in the future and add more functions to the app.