Sponsor Bank Readiness for a Family-based Prepaid Debit Program

The Challenge

Millions of teens lack confidence and want to learn about personal finance. The NewCo addressed this by letting kids earn, save, and invest with tools designed for hands-on, educational growth. It also solved the problem of parents struggling to find ways to monitor money given to kids for field trips or school supplies without handing over physical cash.

Solution context

The NewCo partnered with a financial institution to issue debit cards to families. They created an intuitive app with easy RED, YELLOW and GREEN indicators for allowance with spending controls. As NewCo did not know how to create a compliance program to satisfy bank requirements and was therefore stalled in the process of obtaining a sponsor bank, E&S came in and pushed this forward and NewCo has been successful ever since!

How E&S helped

• - Understand and interpret NewCo's prepaid debit product structure to assist in negotiation of processor and sponsor bank term sheets

• - Collaboratively work within the organization to create bank-accepted policies

• - Customize and successfully handover structure for NewCo to manage moving forward

• - Quickly respond to bank inquiries as needed during the approval process