Barclays to buy children’s debit card and money app GoHenry

Susannah Streeter, chief investment strategist at Wealth Club, said: “Barclays is aiming to lure in what used to be the piggy bank generation by acquiring Go Henry.

“Now brought up in an era of contactless payments and cashless shops, more children are being encouraged to use cards and get used to spending money wisely.

“Barclays’ move is aimed at capturing customers before they are old enough to open a traditional current account, and also potentially provide a channel to reach older relatives with other offers and promotions.

“If Barclays can bring children into their banking family early, with cards and apps, there’s less risk they’ll open an account with another provider when they start earning money.

“This is a well-trodden path, as big banks have tried to attract young savers for decades but the disruptors in the market like Go Henry have made it harder to win young customers.

“By acquiring this stash of accounts and the brand, for Barclays it’s a shortcut to winning a big slice of the market.

“NatWest recognised the potential back in 2021 when it snapped up rival Rooster Money, integrating it as a free perk for existing customers.

“But the young banking space is now crowded, with Revolut Teen Finance, HyperJar, Nimbl and others also competing for attention from families, often undercutting Go Henry’s subscription prices.”