According to Dealbook, $1.1 billion has been invested into youth banking startups. Half went to the one breakout performer, Greenlight (see profile below) which was valued at $2.3 billion in 2021. In total, 10 digital banks actively promoting teen/youth accounts. Nine specialize in the niche, and one, Revolut, is a broad consumer digital bank that also offers a dedicated youth account.

If you are a parent thinking about your child’s financial future, here are 10 reasons why you should set up a separate account for your child before they hit high school at the latest (some accounts start at age 6):

  1. Teach financial responsibility: Separate accounts help children learn financial responsibility and money management from an early age.
  2. Monitor allowances/rewards: Parents can tailor the amount of money given to each child based on age, needs, responsibilities and rewards.
  3. Track spending/saving: It allows parents to monitor and track each child’s spending habits, helping to identify areas where guidance is needed.
  4. Save money for goals: Each child can set and work towards their own savings goals, teaching the importance of saving for the future.
  5. Encourage independence & financial literacy: Managing their own accounts can foster a sense of independence and self-reliance while providing needed financial skills for adult life
  6. Provides ready funds for emergencies: Parents can allocate specific amounts for emergencies, ensuring access to funds when needed.
  7. Build Credit: Older children can graduate to a small credit product to start building their credit history/score.

 


Largest Youth Banking Providers (ranked by website traffic)

Rank Company Founded HQ Visits (Jun’24) Funding ($M***)
Digital Banks
1 Revolut <18 2015 London 13.8 million $1,700
2 Greenlight 2014 Atlanta 1.3 million $557
3 GoHenry (Acorns) 2012 Lymington, UK 610,000 $121
4 Step 2018 Palo Alto, CA 100,000 $491
5 FamZoo 2006 Palo Alto, CA 35,000 Unknown
6 Busykid (AKA Leapspring) 2011 Phoenix 34,000 8.3
7 Till 2018 Nantucket, MA 20,000 $6.0
8 Jassby 2017 Waltham, MA 14000 $7.9
9 Mazoola 2008 Philadelphia, PA 7,500 Unknown
10 Goalsetter 2015 NYC 300 39.7
Big Banks
1 186 million
2 121 million
3 115 million
4 4.5 million
Cards
1 26.9 million
2 Venmo Teen Account 12.9 million

Sources: FintechLabs.com, Similarweb, SEMrush, 24 July 2024
Note: Copper removed from list after shuttering bank services in May 2024


Greenlight
Founded 10 years ago in Atlanta, the challenger now gets more than 1 million monthly visits and has achieved relatively high brand awareness. The company was valued at $2.3 billion during its last round, though that was in the heady mid-2021 period. Its self-reported financial metrics don’t seem that unicornish, but its potential around white labeling (eg. US Bank) may be the underpinning of its valuation:

  • 6 million users (kids + parents)
  • 1+ million new accounts generated for partner banks and credit unions
  • $5.5 million donated in 2023
  • $198 million saved in 2023
  • 47 million chores completed in 2023
  • 414,000 Apple App Store reviews (4.8 score) as of 7/22/24 (app ranked #68 in Finance)
  • 52,000 Google Play Store reviews (4.7 score) with more than 1 million downloads
  • 515 employees (Pitchbook)
  • 33,oo0 followers on Linkedin (626 employees)
  • 3.9 TrustPilot score with 5,280 reviews