Teen Banking Firm Step Logs Over One Million Users

Teen banking firm Step announced on Thurs. (Feb. 25) that it has amassed over 1 million users since its launch four months ago.

Step offers financial tools to teens under age 18. Users can build credit with an FDIC-insured bank account, secured spending card and Step’s peer-to-peer payments platform.

The financial services company recently raised $50 million in a Series B funding round in December, and counts among its investors famed baseball star Alex Rodriguez and TikTok influencer Josh Richards, Step told PYMNTS in an email.

“The rapid adoption of Step reflects the evolving needs of today’s teens and we’re really excited to be working with partners like Alex and Josh to help push our financial literacy movement even further,” said CJ MacDonald, Step’s founder and CEO, said in the press release.

The firm also recently closed a new venture debt facility with Bridge Bank, according to the company press release.

“As someone who grew up with limited resources, financial literacy has always been a mission that resonates with me,” said Alex Rodriguez, chairman and CEO at A-Rod Corp. “I tell my kids all the time that knowledge is power. Step is the type of tool that can empower young people by helping them understand personal finance and money management.”

The earlier the better when it comes to financial literacy, MacDonald told Karen Webster in a recent conversation. “The more educated and equipped you are early, the better decisions you can make down the road,” he said. But, according to Step’s press release, 34 percent of teens are unbanked and only 21 states currently teach personal finance in schools.

But Step is trying to combat that and is engaging with teens on social media to have those conversations about financial literacy, the press release noted.

“I truly never thought I would see a day where teens were actively talking about their banks on social media,” said Josh Richards, influencer and Step investor, in the press release.