Boston based Radius bank launched a new savings app for families with teenagers that helps reward users when they both save and spend money. The bank has $1.4 billion in assets and has focused on digital banking as one of its core value propositions. For this initiative, it is partnering with Wallit in developing the savings app and will serve Wallit as a banking partner providing FDIC insurance. Parents will have to open the account for themselves and for their children. Features of the app are:
- Earn cash rewards for completing savings goals or items on a to-do list
- Budget and track monthly spending
- Automate funding methods to make saving easier and rewarding
- Gain real-time access to account balance and transaction activity
- Automate and manage allowances and chores
- Send money instantly for any reason
While small and even midsize banks could be seen as being challenged in creating tools for their customers compared with large banks, banks in the asset size of Radius need to make shrewd decisions in who to partner with to create a competitive advantage. The Bank’s digital banking platform already allows consumer clients to bank from anywhere with a computer or mobile device and provides features such as check deposit, bill pay, card management, and a personal financial management dashboard. Every bank needs to consider how to capture market share for the next generation of retail clients.
Radius is looking to capitalize on the next generation of bankers, and help teenagers that are already living and breathing on apps to use it to develop positive habits. Mike Butler, the President and CEO of Radius Bank said, “Everything the Gen Z generation does is digital, so it makes sense to teach them money management in a way they can inherently understand. Wallit’s easy and engaging digital experience allows parents to teach teens to earn, budget, spend and save the right way to learn healthy financial habits.”
The banks representatives went on to state that they want to make sure every consumer has equal access to essential banking products and services, and possess the knowledge early on in their formative years. They believe the product will be of interest to parents that focus on preparing their children for college.