Key facts
- Barclays is acquiring the UK business of fintech firm Gohenry.
- The acquisition aims to expand Barclays' services for youth banking and the mass affluent market.
- Gohenry offers prepaid debit cards and a money management app for individuals aged six to 18.
- The deal is expected to complete next year and will slightly reduce Barclays' CET1 ratio by approximately five basis points.
- Barclays' shares rose nearly 5% on the news.
Barclays has agreed to acquire the UK business of Gohenry, a fintech company specializing in youth banking services, in a move to bolster its offerings for younger customers and the mass affluent market. The deal, struck with Gohenry's parent company Acorns, which will retain the US branch, is expected to be completed next year.
Gohenry, founded in 2012, provides prepaid debit cards with parental controls and a money management app for individuals aged six to 18, aiming to teach them about saving, investing, and financial literacy. The company has over 2 million customers across the UK, France, Spain, Italy, and the US, employing approximately 200 people.
The acquisition is anticipated to have a minor impact on Barclays' financial health, reducing its CET1 ratio by about five basis points, but will not affect its 2026 or 2028 financial targets. This strategic move places Barclays in direct competition with challenger banks like Monzo and Revolut, which have also launched services for younger demographics, and follows Natwest's acquisition of RoosterMoney in 2021.
High street banks are increasingly focusing on wealthy families for growth and seeking to defend their customer pipelines from fintech rivals.