Money Management and Kids, The Fintech’s Approach

Kids fintech products can teach vital financial and life skills.


The Fintech Industry has discovered a very fresh and promising consumer base of children and teenagers in India. This is a very new-age approach by the fintech industry and one that’s producing much-needed, progressive results for the young generation of India. The age demographic for this novel consumer base is under 18 years of age. 

Vital Financial and Life Skills to be inculcated through Kids Fintech products

  • Growing wealth
  • Money Management
  • Pocket money tracking
  • Expenditure tracking
  • Savings and Compound Interest Rates
  • Financial literacy and independence

Market opportunity

The current market opportunity for children and teenagers is huge in fintech. Young adults and kids in India make up for 41% of the total Indian population. The market has newly been discovered and new entrants are only just cropping up. 

Fintech’s approach towards Kids’ Money Management

Fintech start-ups are approaching Kids Money Management through Gamification and AI (artificial intelligence) driven insights. They are using creative ways to garner children’s interest towards expense and savings tracking. 

By also involving parents into the solution, fintech products are firmly placing the safety net around kids’ money management.

What the Fintech industry stands to gain from Kids’ business

The Fintech industry is showing keen interest towards the kids’ business since they have identified several long-term benefits to the industry:

    • Increase in the user pool

By roping in children who constitute a major chunk of the Indian population, the fintech industry will gain a spike in its consumer base. 

    • Easier to enforce regulations and compliance

By onboarding the young demographic early on into financial services, it will be fairly easy for the fintech industry to enforce regulations and compliance. 

    • Strengthening online security

By raising awareness among kids and teens who are most vulnerable to cyber-attacks, online security and protection against payment data breach and scams can be strengthened. 

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Young adults and kids in India make up for 41% of the total Indian population. The market has newly been discovered and new entrants are only just cropping up.

What’s in it for me?

A number of fintech start-ups are introducing kids and teenagers to the regulated fintech space like FamPay, Fyp (Gurgaon-based start-up), Junio (kids digital pocket money start-up), Birdfin and EduFund. Investors are showing bullishness towards the teen neo-banking space in fintech because it’s being viewed as an unserved market with huge potential. 

Fintech start-ups getting into this space need to come up with a combination of in-app gamification, monetary prize giveaways and community building to align with the trends of GenZ. In terms of branding, it should be modern and attractive to the young audience. Although the digital pocket money and virtual card segment in India is still at its fledgling stage, it has huge growth potential. 

Anju Nambiar
Anju Nambiar
Anju has 5 years of experience covering business. She writes on startups, business life cycle and startup ecosystem. Her stints include Amazon and Adjetter Media Network.

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