One of the things I often remind financial institutions of is this: the number one influence on where a child banks isn’t an app or a trend. It’s their parent.
And while that influence is powerful, parents need the right tools to introduce their children to banking. A $7B financial institution in the Northeast faced this reality head-on. They were watching fintech and neobank apps become the first financial experience for kids and teens. These apps were purpose-built for families and have a low cost of entry, but they came with a tradeoff: deposits moved off the balance sheet, and the institution lost visibility into a relationship that could have lasted decades.
The risk wasn’t theoretical. A widely cited Access Softek study found that only 10% of credit union members actively encourage their children to join their credit union. That gap represents a major challenge and a major opportunity for institutions willing to act.
This institution decided it didn’t want to be part of that statistic.
The number one influence on where a child banks isn’t an app or a trend. It’s their parent.
Competing without giving up control
Leadership knew they needed a modern youth banking experience that could match fintech functionality without outsourcing the relationship. Referring customers to third-party apps wasn’t an option.
They chose a turnkey, fully white-labeled youth banking platform that integrated directly into their existing core and digital banking systems. The experience carried their brand, lived inside their digital channels, and allowed parents to introduce their children to banking in a trusted environment.
Only 10% of credit union members actively encourage their children to join their credit union.
Just as importantly, deposits stayed on their balance sheet. The institution maintained full ownership of the customer experience while offering kids and teens tools to learn how to save, spend, and give responsibly with parental oversight.
Speed, security, and trust
Time to market mattered. Competitive pressure from apps wasn’t slowing down, and leadership wanted a solution that could be deployed quickly without sacrificing security.
For families, trust is non-negotiable. The platform the institution launched exceeded COPPA requirements and was designed to protect both parent and child data. That assurance helped build confidence internally and externally.
The product was rolled out first to employees, then expanded to customers, ensuring alignment across teams and refining the experience before broader adoption. Early responses confirmed what they believed: families wanted modern tools, but only from an institution they already trusted.
Why this matters for all regional and community financial institutions
While this story reflects a regional bank, the dynamics are the same for all regional and community financial institutions. All users face the same alternatives, and parents have the same expectations.
Youth banking is a strategic investment in long-term relevance, deposits, and multi-generational relationships.
At REGO, we work alongside partners like Lumin Digital to help financial institutions launch these experiences faster and with less friction. Together, we support institutions as they compete effectively while preserving what makes them different.
The institutions that win the next generation won’t hand it off. They’ll build on the trust they already have.
James Peil
Head of Partnerships, REGO
