Junior ISA Servicing

Most Junior ISA owners belong to Generation Z, with different and evolving servicing demands compared to Millennials, and previous generations.

Junior ISA’s launched in November 2011 replacing the existing Child Trust Fund products as a key pillar in the Treasury’s drive to strengthen the UK’s savings culture. As Junior ISAs continue in popularity, they create a valuable opportunity for UK providers.

Engaging with customers early on in their financial services lifecycle provides a great opportunity to capture their custom into the future as their finances mature. Getting this early engagement right can reap significant benefits for providers aiming to retain customers in the long term.

Providing an omni-channel, digital-first and always on service for Junior ISA customers is critical for both customer attraction, and retention.

The Junior ISA Servicing Opportunity

Active start to the customer lifecycle

While Child Trust Funds were initiated by way of a voucher from the UK government, Junior ISA require a conscious decision to invest, usually by a parent or guardian. As such these funds are likely to be more “active" than their CTF predecessors with greater opportunity for meaningful engagement. In particular, encouraging conversion to adult ISA products at maturity is key for growth, but dependent on customer satisfaction and subsequent retention.

Origination and maturity

Providers will experience the challenge of handling both originations, and maturity of Junior ISAs at the same time, as well as ongoing account administration. But, get it right and there is a great opportunity to capitalise on customer loyalty way into the future.

Omni-channel, always on, for Generation Z and beyond

Preparing for the demands of Generation Z with always on, omni-channel digital communications will stand any provider in good stead for dealing with registered contacts, as well as the underlying account owner, once they assume control whether that be at age 16 or maturity. Our research shows that all generations demand a choice of channels.

Junior ISA Servicing

Digital-first demographic

We know how demanding Generation Z can be, and their high expectations of customer experience, so getting this right will go some way to delighting and retaining these valuable customers at the very start of their financial life cycle.

Generation Z has been brought up in a digital first world, with instant communication the norm. They expect access to their financial accounts and personal data at any time, and from anywhere. They also tend to be sceptical of financial services, having witnessed recession and miss-selling within the industry.

Generation Z Demands:

  • This new generation in the marketplace demands digital. Providers must enable good digital solutions to support distribution models, in attracting and retaining such customers
  • With Generation Z at the very start of their financial services lifecycle, providers need a solid communication strategy dedicated to encourage the uptake of adult ISAs or other re-investment as Junior ISAs mature
Target Group Servicing

The Junior ISA Servicing Solution

Outsourcing Junior ISA servicing will enable a quick transition to a multi-channel, digital-first model. Not only will this help to meet increasing demand pressures, it will also ensure quality service provision across multiple channels.

Choosing the right partner with experience in this difficult to serve demographic, with help achieve the slick customer journey that Generation Z demands.

Outsourcing Investment Fund Servicing

Target provides outsourced investment servicing for CTFs and Junior ISAs

Complete portfolio lifecycle management

Target provides outsourced servicing for around 1 million investment accounts including CTF and Junior ISAs.

Governance and compliance

Target's expert compliance team is well-embedded in the UK’s financial services environment, as well as always being fully up to date with the latest regulatory guidance and compliance standards. The team prepares advice and guidance for clients through its monthly Risk and Compliance Bulletin, and regular roundtables.

Comprehensive MI and reporting

Get access to our management information suite, for insight and complete visibility of your portfolio, providing additional governance.

Experience and expertise

Target has serviced over £4.5bn of investment products, and has the systems, processes and expertise to take our proven solution, and develop and deliver tailored servicing for our clients.

Get in touch to find out how outsourced Junior ISA servicing can enhance your customer journey