Allowances can be a contentious issue in family households, so Greenlight Financial's smart debit card hopes to make it easier for parents and kids to see eye to eye on the money front. The company provides debit card designed specifically for kids, giving them a modicum of financial freedom while still offering detailed parental controls.
The Greenlight Financial card looks indistinguishable from any other debit or credit card — the Mastercard Debit-certified card has a number, the owner's name (the child, in this case), and an expiry date. It's the controls over the card that separate it from others. Greenlight cards come with an intuitive app that parents use from their smartphones, letting them control things like total funds available; 'greenlights', which are funds that can only be spent at certain locations; and freely available funds. Kids can also check their funds through a companion app at any time, helping to teach them about budgeting.
What's Driving This Trend
- Kid-focused Debit Cards
- There is a disruptive innovation opportunity for financial institutions to offer kid-focused debit and credit cards with parental controls.
- Mobile Parental Control Apps
- There is a disruptive innovation opportunity for companies to create mobile parental control apps designed for kid-focused debit and credit cards.
- Youth Financial Education
- There is a disruptive innovation opportunity for education companies to offer youth financial education designed for kids with debit cards.
Who This Affects Most
- Banking
- Banks could adapt to the market demands by offering kid-focused debit and credit cards with parental control features.
- Fintech
- Fintech companies could offer mobile parental control apps for parents to manage their kid's debit and credit cards.
- Education
- Education companies could offer financial education tools designed especially for kids to understand how to use their debit cards and learn about financial responsibility.
