British challenger bank launches accounts for children

Revolut, one of Europe’s biggest fintech (financial technology) firms, has launched a “money management” product for children, which can be monitored by parents via the app.

The online-only bank, which claims more than 10 million users worldwide, announced Wednesday it was launching Revolut Junior, an app aimed at kids between the ages of 7 and 17. The accounts will come with their own bank card for the child to use.

Revolut was founded in 2015 and has added features like cryptocurrency trading and savings products to its app over the years in an effort to become profitable. However, Revolut’s losses doubled in 2018 to £32.8 million ($42.4 million).

Initially, Revolut Junior will only be available to the children of U.K. Premium and Metal customers – those who pay for the two top-tier accounts offered by the company – before being expanded to the children of customers with free accounts and in other regions.

Accounts will be opened by the parents or legal guardians, who can then manage and monitor their children’s money on the app.

The junior account also gives parents an option to receive notifications when their child spends money, and includes security settings which will enable guardians to control how a card is used – for example, by prohibiting online payments.

U.K.-based fintech rival Monzo currently allows teenagers aged 16 or 17 to open bank accounts, but has no offering for younger children.

A fundraising round in February raised Revolut’s valuation to $5.5 billion – meaning it’s currently tied with Swedish payments start-up Klarna as the most valuable fintech company in Europe.

– CNBC’s Ryan Browne contributed to this article.