Today, a large proportion of Indian parents still do not want to involve their children in discussions around money or finance as a result, they lack understanding of money and financial tools that are the foundation for building a financially independent life. With India poised to become one of the fastest growing fintech markets in the world, several fledgling fintech startups are exploring the children’s financial market to make them financially independent to manage their spending on their own.
Data from the National Center of Financial Education (NCFE) Financial Literacy and Inclusion Survey 2019 states that only 24% of respondents in rural areas are financially knowledgeable, while literacy in the urban population is 33%. The survey itself gives a hint as to where the resources need to be focused. Against this backdrop, a new breed of fintech startups has emerged whose primary goal is to impart financial literacy to children and make them money wise.
Here are five fresh-faced fintech startups that are helping young Indian kids and teenagers achieve financial freedom with ease
1) June– Junio is a child-focused smart card and app that allows children under the age of 18 to make purchases online and offline. Co-founded by former Paytm Senior Vice President Shankar Nath and Ankit Gera, it is based on the pocket money concept. To use this card, a child does not need a bank account, and parents can set limits on online expenses and cash withdrawals from the ATM, so that the children can only use the amount loaded on the card. The card has a limit of Rs 10,000 per month with minimum KYC, while Rs 5,000 is the daily limit on the Junio card. A full KYC allows transferring up to Rs 1 lakh a month. The app also provides real-time alerts when the child uses the card and you can monitor consumption.
2) Fampay – This card offers a cashless function for teenagers with a numberless card, FamCard. It is a debit card that minors can use to make online (UPI & P2P) and offline payments without a bank account. Co Founded in 2019 by IIT Roorkee candidates, Kush Taneja and Sambhav Jain. The card has no numbers as all the details are stored in the app, so the teenagers do not have to refer to the physical card and there is no fear of information theft in case it is stolen or lost.
3) Slonkit – Among the first companies to launch the concept of prepaid cards for children in India, in 2010, Slonkit was co-founded by Javed Tapia and Murad Naithani. It is a prepaid Visa card that can be recharged, connected to the mobile app, which allows parents to give a monthly allowance to children. The app is available on Android and iOS, and helps parents transfer money instantly, create budgets, set transaction limits, build guide rails, analyze their child’s spending across categories and set alerts. Slonkit’s vision is to reinvent how parents and children manage pocket money.
4) Php – Fyp is a payment app and a countless prepaid card for teenagers, with which they can make online and offline payments without opening a bank account. India’s first holographic card, it comes with a one – touch blocking feature on the Fyp app. Founded by Kapil Banwari, it works in collaboration with YES Bank and Visa and aims to help teenagers learn financial management and concepts.
5) Pencilton– Pencilton offers virtual and physical RuPay debit cards, PencilCard, to teenagers and students to help them manage their spending while learning how to handle money. The app allows parents to give pocket money to children, while keeping track of their expenses and learning real money. The card was founded by Hyderabad-based technicians, Pureti, Ashish Singh, Pallavi and Viraj Gadde, and can be activated and managed via the Pencilton app.
