Current Account Targets Teenage Mobile Spenders
The mobile-only bank has extended its offer to include a full current account for 16- to 17-year-olds, without many of the restrictions that normally apply to younger account holders. With Monzo, customers can transfer money, set up direct debits and withdraw cash with a contactless debit card.
However, some restrictions do apply. Transactions on gambling platforms are prohibited until account holders turn 18, and they also won't be able to take out an overdraft. If a customer accidentally spends more money than they have in their account, the bank simply requests that they pay back the overdrawn amount, with no additional charges or fees.
Monzo also offers a money-tracking interface and real-time feedback through its app to help customers track their spending and avoid getting into financial difficulty.
With 77% of Gen Z consumers already working in some capacity to earn their own spending money (CGK, 2017) and over 50% admitting to being in some kind of debt (Charles Schwab, 2018), financial platforms should help these digital natives to manage their spending through apps and other online tools. See 10 Youth Trends to Watch for more on what's driving Gen Z culture.