Banks race to win over Gen Alpha with teen-only financial services
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Banks and credit card companies are aggressively introducing financial platforms and mobile content targeting Generation Alpha, defined as those born from 2010 onward, in a bid to capture teenage customers, industry officials said Monday.
Mindful of a demographic that comprises over 8 million potential future consumers, Toss Teens — a dedicated financial service for users aged 7 to 18 — has taken the lead in the market, reaching over 3 million users as of May, just 3 years and 9 months after its debut.
Viva Republica, operator of the mobile financial service Toss, said Teens is designed to address financial inconveniences faced by teenagers in areas such as money transfers, payments, transportation and shopping.
The USS Card, one of the key Teens services, is a prepaid top-up card that helps teens develop independent financial habits. More than 3.2 million USS Cards have been issued since its launch in December 2021.
Teens also provides dedicated financial education for youth, as well as a mock stock investment service that allows teenagers to practice investing in both domestic and global stocks with virtual funds, while monitoring real-time market prices.
USS Card, a key service of Teens, Toss' financial service for users aged 7 to 18 / Courtesy of Toss
Woori Bank’s Woori teenteen service is a prepaid electronic payment option for youths aged 7 to 18. Foreign users are eligible to use the service starting from age 14. It offers deposit and withdrawal functions, online and offline card payments and transportation card capabilities.
Recognizing teenagers’ frequent visits to convenience stores, the bank recently extended discount offers to all CU convenience stores nationwide. Until the end of this year, users can receive a 50 percent discount on all convenience store foods such as hamburgers and cup noodles when paying with the teenteen card at CU stores across the country.
Kbank launched its ALPHA Card, tailored for teenagers aged 14 to 17, featuring easy transportation card top-ups via smartphone touch. It also includes a “Money Mission” game-like feature that rewards users when they complete daily tasks, making financial activities more engaging.
In July, Shinhan Card unveiled a financial platform tailored for teenagers, along with a prepaid card exclusively for the demographic, becoming the first in the card industry to do so.
The platform’s main screen highlights popular financial services among teens, including payments and transfers, and clearly shows the current month’s spending and remaining account balance for easy understanding.
These financial companies are aiming for a lock-in effect where young users remain loyal even after reaching adulthood.
“A variety of teen-oriented financial products will continue to be developed to appeal to Generation Alpha, who are familiar with digital technology and value entertaining experiences,” an official from the banking industry said.