Teenagers are green. Both an environmentally-conscious generation as well as new to the banking world, Gen Zers are a customer segment, ready for digitally-forward products that have an impact in the real world. The starting point? Green credit cards for teenagers.
When did you get your first credit card?
For most people, it would have not been until our 20s, but according to research by TransUnion, nearly 1 in 5 Americans between 13 to 17 now have a teenage credit card.
This trend presents an opportunity for banks to play a role often lacking in curriculums – teaching young people to manage their finances responsibly and become more conscious consumers.
The sustainability generation is here. Banks should seize the opportunity or risk falling far behind.
Young people, particularly teenagers, are driving the sustainability agenda. The climate crisis is now Generation Z’s number one concern, with environmental and ecological disasters drastically increasing in frequency. In response, younger consumers are making more informed and sustainable purchase decisions, pressuring brands to create more environmentally conscious products.
For traditional banks who may have difficulty engaging a younger, digital-first generation, this is their opportunity to stand out and compete with neobanks. Teenagers and younger generations lead fully digital lives, expecting nothing less than a cohesive and personalized experience to manage their finances.
One advantage that traditional banks have over challenger neobanks is trust. A study by IBM found that 55% of Gen Z trust banks to resolve serious issues like fraud compared to 11% who fully trust neobanks. And this trust is something that banks can capitalize on to, particularly from an educational perspective, by helping teenagers become more financially and environmentally responsible.
Green credit cards should be the default for teenagers
One way banks can do this is by offering green teenage credit cards as a default product for environmentally-engaged teenagers and young people. These cards provide traditional features with an eco-friendly twist, such as account statements and mobile apps that provide information on the CO2 impact of spending as well as climate insights to encourage more sustainable lifestyles. They also allow customers to offset their carbon footprint by making nature-positive contributions directly through their app.
Green credit cards can also come with incentive schemes and community challenges based on impact reduction or compensation. This provides a fun and engaging way for young people to make a meaningful impact on the environment while also building their credit score.
But it’s not just about the benefits for young people. Embracing more sustainability at a product level can help banks stay ahead of regulatory demands and improve financial performance. Banks are under increasing pressure to protect themselves from the impact of climate change and align with global sustainability agendas. Pursuing sustainability leads to stronger financial performance, making it a win-win-win for everyone involved.
Banks must adapt to the changing times and prioritize environmental education and sustainable practices. By doing so, they can help young people develop critical life skills and make a positive impact on the planet for future generations to come.
Join the green banking revolution in 2023 and discover the top five trends that are set to change the banking industry and make a positive impact on the world. Read our comprehensive guide on the “Top Five Trends in Sustainable Banking in 2023” and get ahead of the curve. Here’s our guide to help you start your journey towards a better, more sustainable future.