The acquisition of a college financial planning platform helps JPMorgan Chase hold the number of young people

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An online portal that enables a more efficient FAFSA application process for studentsFinancial aid adviceCurated scholarshipsA marketplace of college-level courses for eligible credit

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 banking service that provides teens with FDIC insured bank accounts and a fee and interest-free credit card, raised $100 million this April, and grew to more than 1.5 million users just six months after its debut.Since launching a debit card for kids in 2017, Greenlight has added over 3 million parent and children accounts.

Education costs or paying down student loans are one of the leading barriers to achieving retirement savings goals for self-directed active investors ages 25-34. Products aimed at alleviating such financial roadblocks would be uniquely valuable to the 17- to 24-year-old age bracket that Frank serves—and it could also help tie these customers more closely to the bank.Data from Bankrate suggests that the average millennial keeps their checking account for just over 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.

The big takeaway: By offering actionable and valuable solutions to younger consumers, JPMorgan Chase’s acquisition could engender long-term loyalty and retention.

Story Highlights

  • More on this: Frank’s various solutions, currently used by over 5 million students in the US, will become available to Chase’s clients:

  • Trendspotting: Several neobanks have found targeting a younger demographic is an effective strategy.