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 $2.3 billion in 2021. In total, 10 digital banks actively promoting teen/youth accounts. Nine specialize in the niche, and one, Revolut, is a broad consumer digital bank that also offers a dedicated youth account.
If you are a parent thinking about your child’s financial future, here are 10 reasons why you should set up a separate account for your child before they hit high school at the latest (some accounts start at age 6):
Largest Youth Banking Providers (ranked by website traffic)
Rank | Company | Founded | HQ | Visits (Jun’24) | Funding ($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