Child trust funds
Child Trust Funds

Reaching maturity

Child Trust Funds (CTFs) started to mature in September 2020. Young adults began to access their investments, either cashing in their pot or transferring part or all to alternative products. There are around 6 million accounts with billions of pounds under management, so it’s a significant market.

Some parents and guardians actively participated during the product lifecycle - adding to the savings pot until maturity. But some young adults don’t even know they have a CTF in their name. There’s already a significant issue with ‘gone away’ clients with nearly one million being out of contact.

The challenges are two fold:
  • Effective engagement strategies for engaging young digital first investors
  • Tracing and “Know Your Customer” especially considering the financial footprint of this age group

The difficulties in finding, engaging, informing and then actioning should not be underestimated. Providers may require additional resource to deliver such a process driven service.

Junior ISA
Hands holding a piggy bank

Junior ISA

Junior ISA’s launched in November 2011 to replace Child Trust Fund products. A key pillar in the Treasury’s drive to strengthen the UK’s savings culture.

Generation Z

Generation Z

Junior ISA owners belong to the Generation Z demographic. They have different and evolving servicing demands compared to other generations.

Providing an omni-channel, digital-first and always on service for Junior ISA customers is critical for customer attraction, and retention. But we can’t forget the parents or other adult role models that initially signed up for the service. That’s why the customer experience needs to meet different user preferences at the time they choose to access information, support or funds!

As Junior ISAs continue in popularity, they create a valuable opportunity for UK providers.

Engaging with customers early in their financial services journey provides an opportunity to capture their future needs as their finances mature.

Early engagement can reap benefits for providers aiming to retain and grow customers in the long term.

The Junior ISA servicing opportunity

An active start to the customer lifecycle

Child Trust Funds were initiated by a UK government voucher. Junior ISAs require a conscious decision to invest, usually by a parent or guardian. Interaction from customers is likely to be more “active" than their CTF predecessors.

This provides greater opportunity for meaningful engagement throughout the lifecycle. Encouraging conversion to adult ISA or current account products at maturity is key for growth. Customer satisfaction during lifecycle is key to retention.

Origination and maturity

Origination and maturity

Providers will experience the challenge of handling new business and maturity of Junior ISAs at the same time, as well as ongoing account administration. Get it right. Realise the opportunity to capitalise on customer loyalty well into the future.

We know how demanding Generation Z can be, and their high expectations of customer experience. Getting this right will go some way to delighting and retaining these customers at the 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 finances and personal data at any time, and from anywhere. They tend to be sceptical of financial services, so building trust is paramount.

The 'digital first' demographic

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

Preparing for the demands of this younger cohort will put providers in good stead for dealing with the registered contacts, as well as the account owner, once they assume control at maturity. Our research shows that all generations demand a choice of channels.

Generation Z demands

This new generation demands digital. Providers must enable digital solutions to support distribution models.

With Generation Z at the very start of their financial services journey, providers need engaging communication strategies to encourage uptake of adult ISAs or other savings as Junior ISAs mature. Retention equals increased customer lifetime value.

Call centre agent

CTF and Junior ISA Fund Servicing

Target provides outsourced investment and savings servicing for CTFs and Junior ISAs  as part of our wider savings and investments proposition.


Outsourcing CTF and Junior ISA servicing will enable a quick transition to a multi-channel, digital-first model. This will help meet increasing demand pressures and quality service across multiple channels.

Attracting and retaining this customer demographic is important for your business and to increase customer lifetime value. Choosing the right partner with the necessary experience will help achieve the slick customer journeys that Generation Z demands.

Outsourcing Investment Fund Servicing

Our compliance team is made up of a group of experts with extensive experience in financial services.

They're here to help you navigate the governance and compliance landscape. Helping you to protect your business, mitigate risk and most importantly provide assurance for your customers. The team prepares advice and guidance for clients through its monthly Risk and Compliance Bulletin, and regular roundtables to help you stay informed.

Governance and compliance

Our team is up to speed on all the latest developments in the UK’s financial services environment.

They’re fully up to date with the latest regulatory guidance and compliance standards. This ensures we provide your business with the expertise and experience needed to meet control and oversight obligations.

Comprehensive MI and reporting

Our servcing solution beings access to our management information suite.

Our MI suite enables governance and oversight and complete visibility of your portfolio, to support you in meeting your regulatory obligations and tax reporting requirements.

Experience and expertise

We're tried and trusted. Target has serviced over £4.5bn of investment products.

We have the technology, processes and expertise to take our proven solution to service your customers.