Barclays is set to acquire GoHenry, a popular app that helps children learn about money management, as part of its strategy to attract young people from well-off families. The high street bank has reached an agreement to purchase the UK operations of GoHenry from the US fintech company Acorns, which will retain the brand's American division.
The transaction, whose financial terms have not been disclosed, is expected to close next year. The app will continue to operate under the GoHenry name. GoHenry was founded in 2012 by British entrepreneur Louise Hill and provides prepaid debit cards with parental controls, along with a money management app for children aged six to 18, enabling them to save, invest, and take financial lessons.
Approximately 500,000 children in the UK hold GoHenry accounts. Hill, a mother of two, conceived the idea after hearing other parents complain about their children's spending habits during school pickups. The business was reportedly valued between $250 million and $500 million in 2022. Hill sold it to Acorns the following year and continues as executive chair.
Vim Maru, Barclays' UK chief executive, stated that the acquisition would “turbocharge” the bank's offerings for households and families. Hill emphasized that the brand “isn't going anywhere” but can achieve more under Barclays' ownership, adding that it provides a pathway for GoHenry members to continue their financial journey after turning 18.
GoHenry has over 2 million customers across France, Spain, Italy, the US, and the UK, and employs around 200 people. Initially named PKTMNY (pronounced “pocket money”), Hill later called the name “stupid” because it was hard to pronounce and spell. The name changed 18 months later, inspired by its first customer, an 11-year-old boy named Henry from Bristol.
The acquisition gives Barclays a stronger foothold in the youth banking market, where established UK banks are competing with fintech rivals like Revolut and Monzo, which launched children's savings accounts last year. Barclays is catching up with NatWest, which bought the pocket money app RoosterMoney in 2021 to target families with children aged six to 17.
RBC Capital Markets analyst Benjamin Toms noted that GoHenry has been loss-making overall, making the acquisition more about cross-selling and customer inertia, as UK consumers rarely switch banks. He explained that the deal is about acquiring customers and deepening relationships with families to retain them as they age.
High street banks are increasingly focusing on wealthy families for growth to reduce reliance on income from everyday loans tied to interest rate fluctuations. Barclays lost a bidding war for wealth manager Evelyn Partners to NatWest earlier this year, while Lloyds has taken full control of its venture with Schroders, rebranding it as Lloyds Wealth.
Barclays informed investors on Friday that the GoHenry acquisition would reduce its CET1 ratio by about five basis points but would not affect its financial targets for 2026 or 2028. Shares in the FTSE 100 bank rose nearly 5% on Friday.
