- JPMorgan Chase has acquired college financial planning platform Frank.
- The acquisition could help Chase boost long-term customer loyalty and retention.
- Insider Intelligence publishes hundreds research reports, charts and forecasts about the Banking industry. Find out how to become a client.
Frank, a platform that provides financial planning services for college students, has been acquired by JPMorgan Chase.
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.
Do you want to see more stories like this? Here's how to get access:
- Join other Insider Intelligence clients who receive Fintech forecasts, briefings, charts, and research reports to their inboxes each day. Become an Insider Intelligence Client
- Find out more about related topics. Browse Our Coverage
Insider Intelligence subscribers will have access to all archived content.
Register to receive Insider notifications! Stay informed about what you need to know.
Get push notifications
Loading Something is loading.