Step banking offers financial tools to teens, opening up financial literacy and transparency to the typically excluded younger generation. The app-based banking system was developed by two financial industry pros, CJ MacDonald and Alexey Kalinichenko. The two wanted to provide youth with a more modern and connected banking solution, offering them the opportunity to build up their credit. Endorsed by the likes of NBA star Steph Curry and Tik Tok celebrity Charli D'Amelio, Step banking features a no-fee approach to banking, so young consumers won't have to worry about monthly, overdraft, ATM, or late fees.
For security's sake, accounts with Step banking benefit from FDIC insurance up to $250,000, Visa's fraud protection, and advanced encryption and authentication. The app has built-in integration with both Apple Pay and Google Pay and operates like a debit card. To ensure safety, Step accounts must be linked to parent accounts.
Image Credit: Step, Techcrunch
What's Driving This Trend
- Teen-branded Banking
- Offering financial tools to teenagers allow them to learn financial literacy and build up their credit, which disrupts the traditional banking industry.
- No-fee Banking
- Offering a no-fee banking system to young consumers disrupts the fee-based traditional banking industry.
- Mobile-first Banking
- Developing an app-based banking system for teenagers disrupts the traditional brick-and-mortar banking industry with a more modern and connected solution.
Who This Affects Most
- Banking
- The traditional banking industry could benefit from developing more mobile-first and no-fee banking strategies that appeal to younger consumers.
- Fintech
- Developing new financial technology solutions that integrate with mobile devices and foster financial literacy for younger consumers could help disrupt the traditional banking industry.
- Education
- Partnering with banking and FinTech companies to offer financial literacy education for teenagers can help promote better understanding of finances and disrupt current banking models.
