Facebook
Britain's News Portal
Around The Clock
BREAKING
Loading latest headlines…

Barclays Acquires GoHenry Kids' Money App to Boost Family Offerings

Barclays has announced its acquisition of GoHenry, the popular debit card and money management app for children, from US fintech firm Acorns. The move aims to strengthen Barclays' appeal to families and enhance its youth banking services.

  • Barclays is buying the UK operations of GoHenry, a children's money app and debit card provider.
  • The acquisition is part of Barclays' strategy to target young people and affluent families.
  • GoHenry, founded in 2012, offers prepaid debit cards with parental controls and financial education tools for 6-18 year olds.
  • The deal is expected to complete next year, with GoHenry retaining its brand.
  • This acquisition positions Barclays to better compete in the growing youth banking market against rivals like NatWest and fintechs.

Barclays, one of the UK's leading high street banks, has confirmed its intention to acquire the UK business of GoHenry, a well-known money management app and debit card service designed for children. The purchase from US fintech company Acorns, which will retain GoHenry's US division, represents a strategic move by Barclays to expand its offerings for households and attract younger customers.

GoHenry, established in 2012 by British entrepreneur Louise Hill, provides personalised prepaid debit cards and an accompanying app for children aged six to 18. The platform enables young people to save, invest, and engage with financial lessons, all while offering parents robust control over spending. Approximately 500,000 children in the UK currently utilise GoHenry accounts, which originated from Hill's observation of parents' concerns regarding their children's spending habits.

While the financial terms of the deal remain undisclosed, it is anticipated to be finalised next year. The GoHenry brand is expected to continue operating under its current name. Vim Maru, Chief Executive of Barclays UK, stated that the acquisition would 'turbocharge' the bank's services for families. Louise Hill, who will remain involved, expressed that the brand 'isn't going anywhere' and will be able to 'do more' under Barclays' ownership, offering a continued financial journey for members as they turn 18.

This acquisition places Barclays in a stronger position within the increasingly competitive youth banking sector. Traditional banks are actively seeking to secure future customer pipelines against agile fintech challengers such as Revolut and Monzo, which have also introduced savings accounts for younger individuals. Barclays' move echoes NatWest's earlier purchase of the children's pocket money app RoosterMoney in late 2021, indicating a broader trend among established financial institutions to engage families with children from a young age.

The deal also aligns with a wider industry shift where high street banks are increasingly focusing on affluent families for growth, aiming to diversify income streams beyond interest-rate-sensitive loans. Barclays' shares on the FTSE 100 saw a nearly 5% rise following the announcement. The bank also informed investors that the acquisition would slightly reduce its CET1 ratio, a key measure of financial health, by approximately five basis points, though it confirmed no impact on its financial targets for 2026 or 2028.

Why this matters: This acquisition highlights the growing importance of financial education for children and the intense competition among banks and fintechs to capture younger demographics, which represent future adult customers. It signifies a strategic shift by major banks to integrate innovative services for families.

What this means for you: What this means for you: If you are a parent using GoHenry, the service will continue as usual, but with the backing of a major high street bank, potentially leading to enhanced features or integration with Barclays' wider banking products. For Barclays customers, this expands the range of family-focused financial tools available.

Related Articles

Get the news that matters.

Join thousands of readers getting the best of British news straight to their inbox.