Today, banks and fintech startups do not offer products specifically for families, and this appears to be a gap in the market. Meanwhile, a general lack of financial education and financial literacy means families are missing out on securing financial prosperity for their families.
GoHenry ($121.2M raised), which bills itself as a “smart bank for kids,” has tried to crack this market segment, but it’s targeting kids, not families, they say. Meanwhile, others chew on Gen-Zs and parents like Greenlight (USA), Spriggy (AUS), Ruuky (DE), Step (US), Current (US), Nosso (UK), Unest (US).
Into this fray enters Bling, a 20-year-old provider of a financial platform specifically aimed at families, designed to help parents plan for their children’s finances, from pocket money to initial investments.
It has now raised a €3.5M seed round of funding from Peak (based in Amsterdam). La Familia; Such as Lea-Sophie Kramer, Verena Powder, Felix Haas (founder ID), Jacob Schreier (founder Orderbird), former ING-Diba CEO Ben Telgs, soccer World Cup winner Andre Schürler, family ‘influencer’ Carmen Kroll Angels, angel investment and venture capital.
The startup says it is handling an estimated €3.3B in pocket money each year in Germany for children aged six to 13 alone, along with €35B (German count) spent on the home market in Germany.
Bling’s product has educational modules for parents, offers a child payment card that can cover household chores, for example.
Founder Nils Feigen started Winter Blooming when he was just 20 years old, and created it because he was frustrated by watching his classmates fall into personal debt in high school: “After twelve years of schooling, I realized: Well, now we have the Pythagorean Theorem and the rocks.” “I know, but I have no idea about saving money responsibly,” he said in a statement.
With Bling, parents sign up, but no KYC is required because it works with an initial sub-€150 amount. They create a family account, receive a card and set up their child’s account. Children learn through modules, create savings pots, earn money through activities and tasks, and prepare their cards.
After that, family members and the community join Bling through links, thereby contributing to savings pots and investment plans, managing family spending and preparing for critical financial events.
Bling claims to have more than 10,000 kids using a Bling card as their first personal payment experience 6 months after its launch, as it leverages network effects for growth, eventually becoming like grandparents, godparents and friends.
Bling’s business model is direct subscription, transactions and payments from financial products, partnerships (first mobile phone plans, insurance etc.).
Before Bling, Feigen Winter founded three other companies in the youth sector, including Switzerland’s largest student magazine, a family business and licensing house, as well as a consulting agency specializing in young adult topics, leading him to be described as a ‘fintech wunderkind’. German media. He is joined by CTO and co-founder Leon Stephan.