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Early start pension for children’s custody accounts: successfully tapping into the junior customer market

Germany’s federal government is planning to introduce the so-called Frühstart-Rente (early start pension) on January 1, 2026. In order for children and junior customers to receive the state subsidy, they will need an old-age provision custody account.

The new state-subsidized pension model will generate enormous sales potential in the strategically important junior customer segment and open up considerable growth and customer retention opportunities for banks in Germany.

Direct and neobanks in particular have already positioned themselves on the market with innovative offers for children’s custody accounts. These providers stand out against their competitors with fully digital and easily accessible products, complemented by attractive incentives. In doing so, they are setting the course for reaching young target groups quickly and easily – thereby increasing the competitive pressure on traditional institutions.

For traditional banks this means that by proactively implementing customer-oriented and innovative offerings at an early stage, they can not only secure their market positioning but also strengthen it in the long term. These offerings will allow them to sustainably consolidate their role as important market players and build stable, trust-based customer relationships in the junior customer segment.

 

Regional banks in particular will benefit from their strong local roots, a dense branch network and long-standing customer loyalty. By combining digital services with custom advice and proximity, they can secure their relevance to position themselves successfully in a dynamic competitive environment.

 

In order to optimally leverage the potential of the early start pension, banks have to invest in digital infrastructure, customer-friendly closing technologies and targeted communication. This is the only way for them to retain young target groups in the long term and build stable, trust-based customer relationships.

For traditional banks this means that by proactively implementing customer-oriented and innovative offerings at an early stage, they can not only secure their market positioning but also strengthen it in the long term. These offerings will allow them to sustainably consolidate their role as important market players and build stable, trust-based customer relationships in the junior customer segment.

 

Regional banks in particular will benefit from their strong local roots, a dense branch network and long-standing customer loyalty. By combining digital services with custom advice and proximity, they can secure their relevance to position themselves successfully in a dynamic competitive environment.

 

In order to optimally leverage the potential of the early start pension, banks have to invest in digital infrastructure, customer-friendly closing technologies and targeted communication. This is the only way for them to retain young target groups in the long term and build stable, trust-based customer relationships.