Each week, crazy, busy parents like me, all around the country, give our tweens $645 million in “informal” cash—money! $645 million a week! And your financial institution isn’t getting a penny of it!
“Mom, I’m meeting friends at Starbucks, I need ten bucks.” Dad, I’m going to the movies.” “I need to rent a surfboard for the day.” The list goes on. If you’re a parent of a tween, you completely understand.
What if there was a way to make kids completely accountable for that informal money and for your institution to promote it and profit from it?
There is. But before I get into that, I’d like to let you know that I’ve been a key ad agency to financial institutions for 25 years. There’s one thing you all seemingly have in common. Your depositors are aging and you need to go younger. So what do you do?
You all rely on your social media channels to reach the “millennials” right? Bad move. Very bad move! They are such a tapped market that no matter what you’re selling, what your asset size, you don’t really stand a chance at making a significant dent. They’re a different breed. (Look for our next blog about new findings on what makes them so different—written by a Gen Z—a completely different generation.
In 2017, I started working with a company called Ourly. Ourly has a patent-pending and secure platform for banks and credit unions to reach the $645 million a week tween demo and their parents. If you were at the recent Financial Brand Forum, you know that Ourly was the only true differentiator in the room.
My client’s concept is simple, as most great ones usually are.
Using a mobile device, parents and children assign and agree to a dollar figure for specific household chores each week. The child takes a before and after picture of the completed chore and sends it to Mom or Dad. If the parent finds the work acceptable, they’ll approve it and the money will instantly be transferred to the child’s card and the funds will be available immediately. So if my daughter cleans her room and I swipe my approval, she can be in the middle of a Starbucks line and have the funds immediately available to buy that Caramel Macchiato she’s been craving all day.
Unlike an ACH/wire transaction, the funds are instantly on the card.
ACH can take up to two days or more. Here’s the secret… The card that the tween is holding is simply a sub-account of the parent’s debit card. The child never opens up an account. Financial institutions do not allow that. In terms of compliance, there is absolutely no issue. It’s all been carefully worked out over a number of years and countless dollars of investment. The platform is COPPA compliant as well.
It’s all about your brand.
From a branding standpoint, your institution would have a lot to gain. Think of this. If that branded sub-account debit card is in your son’s or daughter’s pocket or pocketbook from the age of nine on, who is their bank or credit union when they reach the age of profitability? That first checking account? That first car? That first home?
Switching gears. Online influencers are the best way to reach this market.
Okay, now add to this, DigiTour Media—my new friends/clients. You know the folks that put on DigiFest and Playlist Live and have created countless 13-year old online celebrities like Tyler, Bryce, Jackson, Mikey & Justin. If you don’t know what I’m talking about, ask your kids.
After you’ve Googled Digi, you’ll understand the significance and the impact of the content they are delivering, and the reach they have in the tween market.
What if your financial institution were to incentivize parents to open a checking account that offered 4 VIP tickets to a Digi event in your area for free (a $400 value) provided their child earned half the value of the tickets by doing their assigned household chores? As millions of us parents know, our tweens can be a challenge when it comes to cleaning their rooms, mowing the lawn or emptying the dishwasher. And believe me, I put that mildly without any expletives, and I’m quite proud of myself.
Our little “hornet’s nest” of a child would unquestionably and relentlessly push us to sign up for a checking account that they heard about on their social channels about your institution’s product offering.
Can you think of a better community-oriented, family-oriented platform? Isn’t this what community banking (verb) is all about?
Financial institutions are constantly looking for a differentiator. Not a very easy thing to find. I’ve got one for you. If you’d like to learn a lot more, please reach out. My email is email@example.com.