Life Stage Banking: A FinTech Advantage Over Legacy Institutions
February 20, 2020 12:22 pmIf you were watching the classic American television game show “Pyramid,” and “investment” and “growth” were hints, you would probably shout “finance!” at the TV. These topics are also top of mind for a much larger and permanent audience: new parents.
Financial institutions have long-recognized how age progression affects their customers. Now, life stage banking is an increasingly hot front in the fight for newcomers seeking a share of the financial services market.
For example, in 2019, the UK-based startup StorkCard launched the world’s first app designed to help parents “baby-proof” their finances by teaching them how to navigate the unfamiliar path of managing money with a new addition to the family.
Using machine learning, the app predicts costs for the essentials baby will need — food, clothing, supervision, etc. — and generates a customized budget accordingly. Social integration allows users to coordinate expenses with partners, family and friends.
Agile companies meet consumers at lifestyle and convenience touchpoints such as this, placing banking functionality in the background. This gives these companies a leg up over ones built on models from the last millennium.
Financial institutions have long-recognized how age progression affects their customers. Now, life stage banking is an increasingly hot front in the fight for newcomers seeking a share of the financial services market.
For example, in 2019, the UK-based startup StorkCard launched the world’s first app designed to help parents “baby-proof” their finances by teaching them how to navigate the unfamiliar path of managing money with a new addition to the family.
Using machine learning, the app predicts costs for the essentials baby will need — food, clothing, supervision, etc. — and generates a customized budget accordingly. Social integration allows users to coordinate expenses with partners, family and friends.
Agile companies meet consumers at lifestyle and convenience touchpoints such as this, placing banking functionality in the background. This gives these companies a leg up over ones built on models from the last millennium.