The cash app became the latest Fintech to focus its service on General Z. Demography It was announced last week It opens the app for 13- to 17-year-olds.

The platform – owned by Twitter CEO Jack Dorsey and managed by digital payment company Karen – now allows teens to send peer payments through the app and use a custom cash card.

The decision to open the cash application platform to the demographic structure of the youth is growing, and the trend of designing Fintex products for the general public is growing.

Many neo-banks have built their platforms around serving the financial needs of young people – the market says these digital players have historically ignored them.

The cash app activity will be seen as an untouchable market for current customers’ children through other payments and digital banking platforms that serve a large audience.

“The key to breaking this audience is to win over the parents of these young people,” said Schiller Lons, vice president of marketing at MX Market. Authors a Recent Report Explore General Zed and the Millennium Trends in Banking.

In an email, she said: “We see a lot of big data companies looking for financing, especially within the family, where a lot of finitex and neo-banks win over small audiences.” “Our study shows that only 47% of Jean-Zed respondents have an account with a traditional bank, credit union, neo-bank or technology company. It only makes sense that these neo-banks are focused on overcoming this demographic structure.”

While many Fintex create products for young consumers, traditional banks have the potential to make the most of their demographics, Lons said.

“Our research shows that local and regional (traditional) banks have more work to do to improve their credibility – and their products and services – to win over younger generations,” she said.

Millennials and baby boomers are more likely to trust domestic and regional banks, and General Z’s children have more confidence in national banks – 44% for General Z and 27% for Baby Boomers, Lance said.

She added: “We believe that parents’ banking habits affect their children, but the differences in banking behavior are widening.”

Here are some of the most common neonates in the Gen Z market.


CJ McDonald, founder and CEO of StepP, said it had decided to take action after noticing that traditional banks and fintechs were building products for the 18-plus market.

“Many people start their financial journey before they die at the age of 18. There is no product in the market that suits their needs.” He told Bank Deve in December. “When we look at it, we say, ‘If we build what will be our first bank account, what if we build that first expense card?’

Launched in 2018, the San Francisco-based startup will provide young people with a free Federal Deposit Insurance Corporation (FDIC) – a secure expense card account that allows users to build loans. The forum displays peer-to-peer payments.

Parents or legal guardians are required to register an action account for users under the age of 18.

Six months after the move, it has grown to more than 1.5 million users and closed its $ 100 million Serie A fund in April. According to TechCrunch. The app is supported by celebrities and social media influencers such as TikTok star Charlie Diamelio and NBA player Stephen Kerry.

While Steppe targets the young demographics, McDonald said the brand is designed to grow with the client.

“Our goal is to grow with consumers in every walk of life, hence the name,” he said. “We are not a teen bank. We are a banking platform and a brand for the next generation.”

Green light

Atlanta-based startup Greenlight In 2017, it issued a debit card for children and said it would serve more than 3 million parents and children. According to TechCrunch.

The platform, founded by Tim Sheehan and Johnson Cook, caught the eye of JPMorgan Chase last year.

The country’s largest bank In collaboration with Greenlight To provide an account for children called Chast First Banking in October 2020.

Greenlight is also looking at a new parent-focused service after the $ 2.3 billion $ 260 million consecutive D shutdown in April.

The forum plans to launch an investment forum aimed at educating parents on how to evaluate stocks and exchanges. According to a CNBC report.

The forum already has savings and investment for children.

“Apart from helping their children become financially savvy, working closely with our families who use GreenLight, one big thing is clear is that saving for college is a big challenge,” Shihan told CNBC. “And there are other things that come up in family life that make you want the money for a variety of purposes.”


UK-based Challenge Bank GoHenry offers General Zed users a teen account, instant peer payments and Giftlinks, which allows Goheni members to receive donations from parent-approved relatives and friends.

A.D. Launched in 2012 in Europe, the forum has been expanding in the United States since 2018.

The company, led by Gohenry CEO Alex Zivoder, last year invested $ 40 million in Gaia Capital Partners, Citi Ventures and Muse Capital in the US-led development firm Edison Partners.

Zivoder He told the banking dive. Last year, the company planned to raise some of its funding on social media channels such as Facebook and Instagram and invest in US TV commercials.

GoHenry charges a $ 3.99 monthly subscription fee for an account in the United States.

The product is designed for 6- to 18-year-olds, but Zivoder says the option is open for one day and allows GoHenry customers to continue using the account once they reach adulthood.

However, Zivoder said the main focus of the forum will be on demographics under the age of 18.

“The reason we don’t focus on what’s going to happen at the age of 18 is because we want to do a good job on what’s going to happen before the age of 18,” he said.

Last month, the company Launched new in-app product. A so-called money mission is a general education experience aimed at enhancing financial knowledge among General Z.

The company has 1.5 million members worldwide.


Seattle-based copper banking, a youth-focused neo-bank, launched in 2019 and has more than 350,000 users on the platform. According to TechCrunch.

Copper co-founders Eddie Beheringer and CFO Stefan Berglundund previously Snap! Raise, youth-centered public fundraising forum. Behringer and Berglund told Tech Crunch that they plan to emulate the Venture Fund, which has raised more than $ 90 million.