What Can We Learn From Justin Bieber’s Pre-Paid Debit Card

by. Mark Arnold

What is the financial services world coming to? Justin Bieber is now offering a pre-paid debit card for teens. Are you serious? It’s bad enough we have to listen to his music and watch his ridiculous commercials. Now we have to compete with him, too?

Although there will probably be very little real competition Bieber brings when it comes to reaching teens and their money, there are a few things we can gain from his entry into the financial services sector. Here are some lessons financial institutions can learn from Bieber’s pre-paid debit card:

(1) Offer a better pre-paid debit card or consumer friendly checking. Ron Shevlin has been warning us for the past year about the “de-banked” and pre-paid debit cards. If you haven’t read his post “The Debanked: The $1.7 Billion Threat to Banks,” it’s a must-read. Whether you like it or not (and think the Bieber card is stupid, which it is), there is a market  (and a growing younger demographic market) that are opting for pre-paid debit cards. Financial institutions can respond with their own pre-paid card as a product or offer a more consumer friendly checking account. Not doing so ignores one of the trends in banking today. The biggest issue to improve either product: fees. Whether you offer a checking or pre-paid debit card make sure you are addressing consumers concerns about fees. The reality of the Bieber card is that it is a horrible deal for consumers. Beat the horribleness of Bieber.

2) Use video tools to reach teens. How did Bieber launch the card? With social media but also primarily through YouTube. You can check out the video below.

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