Family Banking and the Rise of Gen Alpha: A Trend to Watch for 2025

As we enter a new year, the financial industry has a new kid on the block: Generation Alpha. Born between 2010 and 2024, this generation stands at over 38.55 million, bringing with them great potential as they enter the financial landscape. Their preferences and behaviors are already shaping the way banks interact with customers, and by successfully engaging this audience now, banks are more likely to be able to convert these customers later in life. The oldest are already 15, so this generation is primed to start making money moves in the next decade. 

Rise of Family-Centric Finances

This generation is growing up in a world where financial education and digital tools are more accessible than ever. Still, they’re also witnessing the financial challenges their parents face—rising costs, economic uncertainty, and the increasing complexity of managing money. As a result, families are looking for solutions that foster financial literacy and teamwork early on. Enter family banking: a model designed to help families work together to achieve their financial goals while equipping younger generations with the tools they need to succeed. This approach not only strengthens financial habits within the household but also aligns with Gen Alpha’s upbringing in a collaborative, tech-savvy environment.

Family banking and family-centric financial services have begun to rise as banks try to engage and attract Gen Alpha users. Family banking focuses on the interconnection of family members and allows the family to be seen as a unit rather than as individual banking customers. Bank of America is just one bank that has launched a family banking option, offering financial literacy services and parental controls such as daily spending limits. Family banking strives to educate children on good financial habits, under parental supervision, until eventually, the child can become the sole account holder, ideally staying with the same bank. By offering family-centric financial opportunities, banks unlock the potential to gain lifetime customer relationships.  

Digital-First Generation 

Generation Alpha is the first generation to grow up in an almost entirely digital world. They are used to having access to information and assistance at their fingertips, and they are going to expect that with their finances. It’s no secret that digital banking has been on the rise, but it is going to become exponentially more crucial for reaching Gen Alpha. The digital environment also opens up unique opportunities to engage customers, such as through gamification and educational tools. 

• Being Digital savvy is a Must: Since Gen Alpha has grown up on smartphones and Siri, banks must adapt to these digital innovations with their offerings. Banks should focus on having a user-friendly app, where Gen Alpha can easily see their account balance, send money, and receive on-demand customer service. Gen Alpha also is changing the platforms customers can be reached on, making digital savvy advertising just as important. 65 percent of Gen Alpha aged 8-10 spend up to 4 hours a day on social media, with Youtube and TikTok being the most popular platforms. This opens up great potential for banks to reach Gen Alpha on newer advertising platforms, such as TikTok or Snapchat. 
• Engaging Through Education: Engaging younger customers through educational resources is another beneficial way of reaching Gen Alpha through digital means. Visa offers an online hub of financial education resources where kids can browse different games such as Avengers: Saving the Day, which features recognizable superheroes and teaches tools like saving and budgeting.
• Learning Through Gamification: Similar to Visa’s online hub, banks can also create gamification aspects within their apps to engage younger users. Things like a savings tracker, rewards for reaching goals, and badges for no-spending streaks can motivate and engage kids, by making money management seem more like a fun game, while also teaching key management skills. 

Leaning into the Interconnectedness 

As technology has grown, families are becoming more connected than ever. A significant 68 percent of parents prefer the unified banking that family banking offers, as they can see and manage all accounts through one centralized dashboard. Several key features of family banking lean into this consumer desire for interconnection, including customizable spending limits for family members, real-time notifications of any transactions, and shared savings goals that each family member can add to. 

By integrating and promoting these interconnected family banking solutions, banks can successfully meet the evolving needs of modern families. By enhancing financial transparency, promoting responsible spending for all ages, and encouraging financial family planning, banks can attract new long-term customers while also positioning themselves as institutions that prioritize family-centric innovations. 

Gen Alpha is bringing a transformational opportunity for the financial world, heavily focused on digital innovation and family-centric approaches. By engaging these younger financial players now through educational resources, gamification features, or even family saving goals, banks have the opportunity to center themselves as key players in this generation’s financial journey. Banks that can successfully build loyal relationships with Gen Alpha now are laying the foundation for a lifetime customer relationship. 

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The information provided in this blog is for informational purposes only and should not be considered financial advice. HIFI is a marketing agency and not a licensed financial advisor. Always consult with a qualified financial advisor or professional before making any financial decisions. HIFI is not responsible for any financial decisions made based on the content of this blog.