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Spain: Fintech companies point to the centennial market and compete against traditional banks

In the absence of products that meet the needs of the centennial market, new fintech proliferate that break with traditional bank proposals and several options are offered in Spain. This was reported by that financial comparator to Cointelegraph en Español, on June 18, through a press release.

Centennials or Generation Z are those that come to the millennial generation and are all young people born between the late 90’s to 2010, a generation connected to the Internet.

Centennials take advantage of offers and discount coupons and, compared to millennials, have lower purchasing power and, therefore, their frequency of purchase is more reduced. However, they value the diversity of payment options, the personalization of offers and are highly susceptible to online advertising.

There are banking limitations for minors

Despite being one of the most connected generations, adolescents over 14 years of age do not have access to an offer of digital banking products suitable for their profile. Most banks offer bank accounts for children destined for savings, in which cards can not be associated, or current accounts with linked prepaid cards. “Paradoxically, in none of the cases are digital accounts, a failure of product focus by entities for this type of target audience.They do not usually allow opening through the bank’s web or app, an option that the entities offer in their current accounts for adults, Children accounts require, obligatorily, the presentation of the father, mother or guardian together with the minor in the bank branch to carry out the contracting of the account, a process not adapted to the digital era”, the statement said.

“Few banks offer banking applications from which young people can control their finances, it is usually the parents who have the credentials of mobile or online banking and are responsible for managing the account and providing this information. to the child”, they explained later.

In this context as explained by the financial comparator, in the absence of products that meet the needs of these adolescents, active consumers of both online commerce and physical stores, new fintech proliferate that break with the existing account for children of banks traditional

Fintech options in Spain

There are several proposals that offer options in Spain. Here are some of them:

The Madrid fintech Rebellion, an application from which young people over 14 can open an account and associate a prepaid virtual or physical card. The opening process is relatively simple. You have to download the app and that both father, mother or guardian and child make a photograph of the ID and a video selfie with the camera of your smartphone, a process of less than three minutes, as they say from the app.

Mitto is an app for people over 14 years old, from which they can buy online or in stores through the customizable prepaid associated card, receive money instantly and know their available balance at all times. From this application, teenagers and parents can operate together: ask for money, perform recharges, lock and unlock the card, etc., so each user must download the app on their mobile.

Revolut and Bnext are already designing products of these characteristics in order to meet the needs of the centennials, the digital natives. Revolut will launch a new application for children and adolescents associated with a card from which they can manage their savings and thus promote their financial education. For its part, Bnext will allow accounts to be opened to those over 14 years of age, in which they can receive payment or control their expenses if, for example, they travel abroad.

“These new start-ups aim to fill the gap left by banks in terms of their online offer for teenagers, which is not very adapted to their profile and consumption habits”, the statement concluded.

Published inFintech

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