JPMorgan Chase acquires college financial planning platform

  • JPMorgan Chase has acquired college financial planning platform Frank.
  • The acquisition could help Chase boost long-term customer loyalty and retention.
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Frank, a platform that provides financial planning services for college students, has been acquired by JPMorgan Chase.

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Frank's various solutions, currently used by over 5 million students in the US, will become available to Chase's clients:

  • A portal online that allows students to apply for FAFSA faster
  • Financial aid advice
  • Curated scholarships
  • Marketplace of college-level courses that are eligible for credit

Many Neobanks found that targeting a younger audience is an effective strategy.

  • Current started out offering debit cards for teens, and has since tripled its user base to over 2 million after broadening its demographic focus.
  • Step, a service that provides FDIC insured bank accounts to teens and a fee and non-interest-free credit cards, raised $100m this April. Six months after its debut, it has already grown to more than 1.5million users.
  • Greenlight created a debit card for children in 2017 and added over 3,000,000 child accounts to parent and child accounts.

JPMorgan Chase may be able to retain and build long-term loyalty through its acquisition by offering young consumers valuable solutions.

For self-directed active investors aged 25-34, paying down student loans or education costs is one of the biggest obstacles to reaching retirement savings goals. Frank's age group of 17-24 year-olds is a unique target market for products designed to alleviate financial roadblocks.

Bankrate data suggests that the average millennial has a checking account that they keep for less than nine years. With Frank's value-add solutions, JPMorgan could make a lasting impression on a young customer and ensure they remain with the bank for years to come.

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