goHenry is designed to create a way for kids to build financial independence and responsibility – all whilst being safely and remotely overseen by their parents. Parents set up an online bank account, with their children’s account linked to their own. Children have their own debit cards, which they can use within the parameters parents set. Due to the careful rules, there is no risk of the children going into debt or overdrafts, and parents can limit where the debit cards are used (both online and in shops), as well as immediately block the cards if they get lost or stolen.
How they’re disrupting
This is the first digital banking company aimed specifically at families. Visa debit cards and mobile banking apps are specifically designed for children as young as 6, resulting in safeguards that aren’t available with other leading debit cards, which usually have a minimum age of 11 for their users. Children have the chance to learn about responsibility and finances in their own way through a number of unique opportunities offered, such as choosing themselves how much to save each week or doing set chores to earn extra money. Parents receive real-time spending notifications and can view their children’s earning, saving and spending habits with ease on both mobile and web applications, giving them unparalleled control.
With 78% of children in the UK alone receiving pocket money, and similar figures in North America and Europe, there is a large potential audience, especially by decreasing the minimum age. With over half a million users in the UK alone already, goHenry has the potential for a lot of future growth.
Investments and future
goHenry raised £3.99 Million in equity crowdfunding in June 2016, opening up the possibility for parents to invest in a tool they can use for themselves. They plan to further develop their product, as well as move it into the European market.