Revolut Junior: helping kids to better manage finances
Money literacy is not something that is usually t...
FinTech Magazine takes a closer look at Revolut’s new banking service for children, Revolut Junior.
Money literacy is not something that is usually taught in schools. For many, understanding how to save and spend is taught by parents and guardians, or in some cases, the hard way.
Teaching children and teens the value of money from a young age is a way to equip them to be sensible in the future, and so Revolut has introduced Revolut Junior, a Revolut account designed specifically for young people aged 7-17, with an overarching control from parents or guardians.
Control of finances
To ensure that control remains with the parent or guardian, they can transfer money to the account, as well as alter the security settings.
Much like Revolut's standard services, the account provides instant spending notifications, and the account controller will also be updated with all of these notifications
In the spirit of most digital banks, setting up the account has been designed as a straightforward process. Parents or guardians can sign up for the account through their own dashboard, by clicking on "Junior accounts" and filling out the child's information. They can then order a card for the child, and add money to their card from the account.
Unlike the classic Revolut account, the dashboard is optional for Revolut Junior. Children and teens can download the app via a QR code provided on the account creator's dashboard, or just work with the debit card.
The balance between security and freedom
If you're worried that a child may go and spend all of their money on sweets, the account holder can control which merchants the child or teen can use the card for. They are also automatically blocked from using age-restricted merchants.
This financial inclusion will nurture a greater understanding and management of money from a younger age, giving children the opportunity to better understand the value of money. Revolut emphasises that the junior account is focussed around trust and respect, which will assist younger people in understanding the value and management of money.
The UK challenger hopes to soon provide more support for recurring allowances, new tools to encourage saving towards goals, as well as a rewards section for children doing chores.
The service is currently available to Revolut Premium and Metal customers in the UK.
Did you know? Revolut won innovation of the year at the British Bank Awards 2020.
For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.
CMA warns UK and Irish banks over bank transaction histories
Specifically, the CMA named prominent challenger bank Monzo, the Bank of Ireland, NatWest Group, and Virgin Money as not providing customers with records of their bank transactions within the maximum outlined timescale (40 days after closing the account).
Such information is crucial not only for ensuring a smooth transition from one bank to another, but also to provide a foundation for credit applications in the future.
According to the Retail Banking Market Investigation Order 2017, 95% of bank and building society customers should receive their bank transaction histories in at least 10 days.
Reputation: A bank’s greatest asset?
Of the 150,000 customers affected, Monzo was by far the main contributor - 143,000 (95.3%) - with the other three dividing the remaining 7,000.
The extent to which the magnitude of its mistake is attributable to being a digital-only bank is not clear, although it may give some customers pause for thought. With a superior customer experience being among the bank’s greatest assets, continued reputational damage is something that it cannot afford to sustain.
Although the CMA’s action in this instance has been to issue each bank a warning and order the immediate dispatch of all outstanding information, it has warned that future breaches will carry heavier consequences. Measures could include legally enforceable compliance audits on a yearly basis.
Helping customers get a better deal
Condemning the banks for negligence that could negatively impact customers’ desires to take out loans or mortgages, Adam Land, CMA Senior Director of Remedies Business and Financial Analysis, promised that his organisation would remain vigilant to similar behaviour moving forward.
“Banks must comply with all the rules – that includes providing a full transaction history promptly.
“We will be watching closely to make sure these leading names stick to their word and don’t let their customers down again. The Bank of Ireland, Monzo, Natwest Group, and Virgin Money should be in no doubt that the CMA stands ready to take further action if these failures are repeated.
Image source: gov.uk