Tinkoff Bank is ramping up its segmentation strategy, launching Tinkoff Junior, an easy-to-use app to help young clients manage their personal finances. It is also extending its mass affluent Tinkoff Black card to accommodate up to 30 currencies, reports Douglas Blakey
Tinkoff Bank is expanding its banking platform for children and teenagers with Tinkoff Junior. Parents can open a current account with a Tinkoff Junior debit for their child via the bank website or app. The card can also be added to a young client’s smartphone. The account enables contactless payments via Apple Pay, Android Pay or Samsung Pay. Moreover, parents and their children can choose the card’s design.
Tinkoff Junior card holders will also join the Tinkoff Junior loyalty programme. Rewards include 2% of the purchase amount as bonus points for online shopping and 1% for other purchases.
Bonus points may be spent on online shopping as well as items such as restaurants and fast food. The amount of bonus points spendable during the settlement period is capped at 2,000.
Cardholders can use the Tinkoff Junior mobile app to pay for a variety of services including school meals and games. They can also set spending limits, change their PIN and choose app themes such as space, wildlife, travel or dinosaurs.
In addition, Tinkoff Junior clients will be able to open a ‘money box’ savings account and top it up, including via Card 2 Card transfers. Young clients will be able to reach Tinkoff Bank’s managers via chat. Other features include access to age-relevant content in Tinkoff Stories such as advice on using bank products. Parents can use their own mobile app to top up their child’s Tinkoff Junior accounts.
There is also the facility to offer financial rewards for children doing tasks, which the child has the option to decline. Parents can amend the child’s spending limits and enable the Where is My Child? feature, enabling parents to keep an eye on their child’s whereabouts.
Future customer base
Maxim Yevdokimov, chief digital customer experience officer at Tinkoff Bank says:
“While you are reading this, the world of financial services has already changed. Similarly, today’s children and teenagers will soon become the banks’ primary audience.
“It will take no more than five or seven years for them to start opening deposit accounts and using credit cards. As we speak, they often prove to be more advanced in modern gadgets and solutions than their parents.
In developing Tinkoff Junior, we sought to go beyond promoting financial literacy. We have leveraged our hands-on experience in managing personal finances. Our objective is simply to support this knowledge with an easy-to-use and robust tool.
Tinkoff Black extends
The launch of Tinkoff Junior coincides with a major upgrade of the mass affluent Tinkoff Black account. Tinkoff Black card customers can now open multiple accounts in up to 30 currencies at a time. Moreover, Tinkoff Black customers can instantaneously exchange money between currencies at attractive rates.
The currency mark-up for Tinkoff Black customers is rarely above forex market rate plus 0.5%. Russia’s Tinkoff Bank is adding 26 currencies to the already available Russian rouble, US dollar, UK pound and euro.
New currency accounts can now be opened via the Tinkoff mobile app for iOS. The service will be available later this year across the Android platform. Tinkoff customers can also link their multi-currency cards to Apple Pay, Samsung Pay and Google Pay.
Anatoly Makeshin, head of payment systems and vice-president of Tinkoff Bank, explains: “Tinkoff Bank customers are active travellers. They use Tinkoff Black multicurrency cards on their international journeys.
“With 30 currencies now on the list, we give our clients a long-awaited opportunity to use Tinkoff Black more often, no matter where they choose to go.
“Holders of this easy-to-use multi-currency card do not have to worry how to best exchange their money while travelling. This option is now available in their smartphone. You first transfer money to the right currency account at an attractive rate. Customers can then link it to the card and continue using Tinkoff Black as usual.”
Tinkoff is Russia’s first and largest direct bank with around 7 million customers. It is also the second-largest player in the Russian credit card market, with a market share of 11.7%.
In June, Tinkoff Bank CEO Oliver Hughes, told RBI: “We are opening over 400,000 accounts per month across all products. In consumer current accounts, we are opening
120,000 new accounts per month.”
Tinkoff is successfully disrupting the existing market, while its current account net promoter score of +57 is sector-leading. Tinkoff is on track to report net income growth per year in the 20-40% range to the end of fiscal 2019.