Atlanta-based fintech startup Greenlight has demonstrated that there’s big business in kids and their cash. Boasting a variety of products for kid-friendly bank accounts, Greenlight raised $260 million in a Series D funding round last April and has expanded its user base to five million families.
Where is the novel kid-focused firm intending to go from here? Right into parents’ wallets: a Greenlight-branded Mastercard credit card is due to be launched in the near future, offering cash back incentives as well as a way to easily invest in their children’s education.
According to Greenlight Co-Founder and Chief Executive Officer Tim Sheehan, the new feature is designed to be as flexible and user-friendly as possible. The automatic investment scheme is opt-in only, and parents are given the option to invest their savings in a variety of ways through the company’s app.
“We just decided, after talking to really a lot of parents, that they basically valued flexibility over the small tax benefit of the 529,” said Sheehan. “Essentially, they said, I would rather have the flexibility and not be penalized to use the money for anything my family needs.”