US bank joins in green light on teens' bank accounts

The American bank launched a partnership with Greenlight aimed at increasing financial education.

The collaboration will give eligible U.S. bank customers free access to Greenlight's debit card and money app, designed to help families teach their children financial skills, according to a new release released Thursday (June 6).

The bank is the first financial institution to offer Greenlight through an integrated mobile app experience, using Greenlight's new software development kit, according to the release. The program will allow the youngest members of the American Bank family to learn how to earn, save and spend, all under the supervision of their parents. Greenlight also allows parents to send money instantly, automate allowance payments, manage household chores, and set spending controls.

“For families, there is no better way for children and teens to develop their financial confidence and skills than with hands-on experience,” said Tim Welsh, vice president of U.S. Banking. individuals and businesses at US Bank.

“Our partnership with Greenlight revolutionizes the way our customers can teach their children about money, providing reliable, proven financial tools that create positive financial habits.

This partnership follows a recent request from the Office of the Comptroller of the Currency (OCC) to U.S. financial institutions (FIs) to help improve “the financial capability and financial health of their customers.”

Although the request was made in celebration of National Financial Capability Month in April, PYMNTS Intelligence data shows that consumers seek trusted financial advice from their financial institutions throughout the year.

In fact, “seeking advice” is an understatement. According to PYMNTS Intelligence's “How UC Can Help Young Consumers in a Struggling Economy” study, nearly 6 in 10 FI customers expect their financial institutions to help them improve their financial health.

The report, produced in collaboration with PSCU, reveals that the need for financial advice is particularly pronounced among younger consumers, with 29% of Gen Z consumers surveyed admitting to not knowing their credit score.

“This is perhaps not surprising, given that 79% of Gen Z and millennials say they get their financial advice through social media,” PYMNTS wrote. “Only 11% say they use financial advisors to get the guidance they need.”

Another PYMNTS Intelligence Tracker, “Personalization Beyond Traditional Banking to Build Financial Wealth,” found similar trends in the U.K., where 58% of Gen Z consumers say they follow “end-influencers.” from TikTok. Just over a quarter say their social media gurus offer better advice than the professional financial providers they speak with.