Acquisition of College Financial Planning Platform Helps JPMorgan Chase Attract Young People

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The news: JPMorgan Chase acquired Frank, a college financial planning platform for students.

More on this: Frank’s various solutions, currently used by more than 5 million students in the United States, will be available to Chase customers:

  • An online portal that enables a more efficient FAFSA application process for students
  • Financial aid counseling
  • Scholarships
  • A college-level course market for an eligible credit

Trend research: Several neobanks have discovered that targeting a younger population is an effective strategy.

  • Running started offering debit cards for teens, and has since tripled its user base to over 2 million after expanding its target demographic.
  • Stage, a banking service that provides teens with FDIC-insured bank accounts and an interest-free credit card, raised $ 100 million in April and grew to more than 1.5 million users just six months after his beginnings.
  • Since the launch of a debit card for children in 2017, Green light added over 3 million parent and child accounts.

The big takeaway: By providing actionable and valuable solutions to young consumers, the acquisition of JPMorgan Chase could generate long-term loyalty and retention.

  • One of the main issues is education fees or student loan repayment barriers to achieve retirement savings goals for self-directed active investors aged 25 to 34. Products aimed at alleviating these financial barriers would be particularly valuable for the 17-24 age group Frank serves, and they could also help tie these customers more closely to the bank.
  • Bankrate data suggests this the average millennial keeps their checking account for just over nine years. With Frank’s value-added solutions, JPMorgan could make a lasting impression on a young client and ensure they stay with the bank for years to come.

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