Edinburgh study calls for youth-friendly banking redesign

New research from the University of Edinburgh's Futures Institute and Young Scot has called for banks, policymakers and financial providers to redesign financial services for young people. The report draws on the experiences of more than 350 young people across Scotland.

The study examined how children, teenagers and young adults manage money in an increasingly digital environment. It found that many existing products, support services and education efforts no longer reflect how young people make financial decisions.

Researchers gathered evidence through an online survey of 300 people aged 11 to 24, four co-design workshops in Aberdeen, Dundee, Edinburgh and Glasgow, and interviews with 14 professionals from across the financial sector.

The research identified five broad trends shaping young people's financial lives: using digital money at earlier ages; encountering financial behaviour through gaming platforms; relying heavily on parents or online sources for advice; seeing traditional banks as distant; and receiving school-based financial education that many consider inconsistent and insufficiently practical.

The findings suggest a gap between the structure of many financial services and the everyday experiences of younger users. Although many participants described banks as remote or irrelevant, they were comfortable using banking apps, suggesting digital services may work better when paired with clearer guidance and stronger support.

Gaming emerged as a notable theme. Young people are often introduced to spending, saving and financial risk through gaming environments, where regulation remains more limited than for mainstream financial products.

Advice was another area of concern. Parents and guardians remained the main source of guidance for younger children. Still, older teenagers increasingly turned to social media and online content despite often distrusting what they found, creating what the report described as an information-trust gap.

Participants said they wanted financial services to reflect real milestones such as starting a first job, taking on a student loan or paying rent. They also called for simpler language, stronger protections against scams and overspending, and products that account for inequality and economic uncertainty.

Co-design focus

A central recommendation is that children and young people should be more directly involved in developing financial products, services and policies. The report argues for ongoing co-design rather than one-off consultation, and calls on regulators, educators and financial firms to build that approach into decision-making.

For policymakers, the recommendations include reconsidering age thresholds to reflect when young people are already using digital forms of money, improving support for practical money skills beyond the classroom, and strengthening safety and guidance around online platforms and gaming.

For financial services groups, the report highlights the need for financial pathways that develop alongside young people's circumstances. It recommends combining digital access with human support and improving protections against fraud, scams, and data use while preserving ease of use.

The work was carried out through a year-long partnership between the University of Edinburgh and Young Scot. Workshop support came from Royal Bank of Scotland and the Royal Society of Edinburgh-funded project Thinking the Future of Money in the Humanities, with participation from organisations including Lloyds Banking Group and Tesco Bank.

"This is a fantastic example of collaboration between academia, industry and the third sector, led academically by Professor Tina Harrison of the Business School and Dr Chris Elsden of the Institute for Design Informatics at Edinburgh College of Art, with strong sector engagement," said Douglas Graham, Director of Innovation Clusters at Edinburgh Innovations.

"By working together in this way, including actively involving young people, we can design products, services and policy that are really fit for purpose and, in this case, improve financial health and wellbeing."

Young Scot said the findings point to a wider mismatch between institutional systems and the financial realities facing younger generations.

"This research is a clear call to action. Young people are navigating an increasingly complex financial world, yet too often the systems and support around them haven't kept pace with how they live, learn and manage money today. By working directly with young people, we've been able to highlight not only the challenges they face, but the practical changes needed to better support them," John Loughton, Chief Executive of Young Scot, said.

"Financial services have a huge opportunity here to become more inclusive, more transparent and more relevant to young people's real lives and experiences. Let's all collectively strive to meet the challenge of this generation's financial hopes and expectations."

Royal Bank of Scotland, which supported the workshops, said the findings would inform its work with younger customers in Scotland.

"One of the most important things we can do as a bank, when designing for our younger customers, is to listen to their views and understand their context and needs. Recognising the things we do well for these customers today whilst understanding how we can continue to grow and adapt our offering to reflect the group's evolving needs is vital," said Sandi Royden, Head of Retail Banking Customer Propositions at Royal Bank of Scotland.

"This research forms an important input to our continued development of our propositions for young people in Scotland, helping them build their financial skills, self-belief and confidence."

The report also included direct contributions from young people who took part in the project.

"Money is already a big part of our lives, but a lot of the support out there doesn't feel made for us. We're learning through apps, games and online, but it can be confusing and sometimes hard to know what to trust. It would make a huge difference to have clearer advice and tools that actually match the stages we're going through, like starting work or managing rent for the first time," Emmanuella Shodunke, a Young Scot volunteer, said.