Greenlight gears up its B2B offerings with “Greenlight for Banks”
- On Wednesday, Greenlight announced the launch of its new B2B product “Greenlight for Banks” with which FIs can integrate its services within their own ecosystems.
- With the integration, banks can access Greenlight’s entire suite of family-oriented banking tools such as financial tools for earning, saving, spending, and giving.
Greenlight builds family oriented financial literacy solutions and financial tools. The company offers debit cards for kids and teens, cash back credit cards for parents, and even a financial education game Level Up. On Wednesday, the firm announced the launch of its new B2B product “Greenlight for Banks” with which FIs can integrate its services within their own ecosystems.
With the integration, banks can access Greenlight’s entire suite of family-oriented banking tools such as financial tools for earning, saving, spending, and giving. Moreover parents can automate allowance, manage chores, and send money instantly as well as ensure supervision.
The integration also comes with Greenlight’s Level Up, which is an interactive, curriculum-based financial literacy game. Banks can also ensure their visibility with the co-branded landing page and app.
“Greenlight for Banks can be launched as quickly as three weeks, depending on the level of integration requested by the partner,” said Matt Wolf, SVP of Business Development, Greenlight.
Currently the firm has partnered with Morgan Stanley’s CashPlus brokerage account, through which clients can access the firm’s app and debit card with the monthly fee waived.
Similarly the firm also has some retail bank partnerships. “We believe we’ll be better able to serve parents and their children with age-appropriate financial management skills,” said Cathy Cooper, Executive Vice President and Chief Consumer Banker at WaFd Bank.
Tearsheet take:
B2C fintechs historically have had less luck with investors than their B2B counterparts. Moreover, B2B fintechs have been better at turning profits because their software-as-a-service approach is sticky and scalable, while B2C firms find it hard to breakeven, differentiate, or defend against new competitors.
It is likely that Greenlight’s focus on B2B partnerships and products emerges from a mix of these reasons as well as the fact that the B2B financial market size is a lot bigger than that in B2C.
Greenlight for banks gives banks the option to hold deposits at their own bank or have it stored with Greenlight’s sponsor bank. How well will this strategy work in adding to the core customer base engaged by a bank and under what circumstances will banks decide to let go of these deposits and have them stored at Greenlight’s sponsor bank?