Incent’s New Youth-Centric CUSO Finds Initial Support from Pioneer FCU

By W.B. King

To reinforce Incent’s mission to partner and collaborate with financial institutions to build the best-in-class youth engagement tools, the Portland, Ore.-based fintech launched a new CUSO.

“Last year, we were researching the market and meeting with credit unions, banks and third-party providers to better understand how to offer a better youth banking solution,” Marcell King, COO and president of Incent, told Finopotamus. Designed specifically for community financial institutions, the company offers business-to-business (B2B) youth banking services for U.S. banks and credit unions.

“We started working on the CUSO relationship with Pioneer FCU around June 2024 and officially launched the CUSO in April 2025,” he continued. “Pioneer FCU is the first credit union to join the CUSO, and we are looking for additional CUs to join to support our mission.”

Tracey Miller, EVP / VP of operations at Pioneer, explained that the Pioneer team wasn’t confident they had a solution that met the “specific needs of young people” as well as for “the parents who oversee their child’s banking experience.” And for Miller, it was a personal journey.

“l want to teach my nine-year-old the value of money, which is increasingly challenging in a digital, cashless world,” she told Finopotamus. “I struggled to find a solution that offered a controlled digital banking experience for my child to learn how to earn, save and use a debit card that was offered by my institution, not a third party.”

The Mountain Home, Idaho-based $712 million Pioneer FCU supports more than 49,000 members. When Incent approached the credit union with its solution and the prospect of joining the CUSO, Miller said it became clear a winning partnership was in the offering.

“With Incent’s solutions, we can help guide our members’ children through an entirely digital financial world, with safeguards in place to protect and educate them about money,” she continued. “Incent recognizes that offering a branded youth account helps to build relationships between the child and institution, as well as keep their deposits at the credit union. We know they are not going to be children forever, so we want to make sure young members are educated, prepared for their first credit card or loan.”

Impetus and Implementation

While business-to-consumer (B2C) digital banking providers, such as Greenlight, are partnering with institutions to provide a youth banking solution, King believes they’re missing several key benefits.

Marcell King

“First, the institution loses the user deposits as the youth and parent account is held at Greenlight, not the credit union. Second, young consumers have an estimated $360 billion in annual disposable spend, and the interchange revenue is going to B2Cs that offer debit cards,” he said. “The third, and most important part of this, is that the credit union does not have a complete relationship with its members because they’re building loyalty and brand equity with the B2C provider. When the child turns 18, they will find a new institution.”

When it comes to the technological side of the equation, King said the CUSO’s solution, which is “plug-and-play,” is embedded into a credit union’s existing digital banking experience, so parents and children don’t need a separate app.

“We have existing integrations with the leading core providers and digital banking providers and can have clients up-and-running in a few short months,” King said. Miller added that Pioneer FCU has two employees overseeing digital banking products, including this latest offering.

As the Pioneer anticipates the official rollout of the solution in the coming months, Miller said that there has been interest from staff in offering these youth banking solutions, with several employees testing the solution.

“Our members want to open youth accounts with Pioneer FCU. We want to honor that responsibility and trust by offering a youth solution that helps parents monitor their child’s finances and teaches children about the value of money,” she said. “We wanted to offer something that looks and feels like Pioneer FCU and doesn’t require a separate application or digital banking experience to access.”

CUSO Value Proposition     

As King sees it, CUSOs are another way for credit unions to stay relevant and competitive. To this end, he said credit unions have to partner with technology companies that have the capabilities and resources to help develop those types of products.

Tracey Miller

“Most CUs don’t have development resources to build their technology stack to their exact needs. CUSOs offer a way for vendors and credit unions to directly collaborate and partner to understand how to address their problems,” he noted. “CUs provide influence and crucial guidance on the product and its roadmap, resulting in a best-in-class solution.”

When looking for new products and services, Miller said Pioneer FCU consistently seeks like-minded CUSOs. “They are run by peer credit unions that are passionate about gathering industry feedback and strategically planning to build the best products possible,” she added. “At their core, credit unions are cooperative and CUSOs are integral in moving the industry forward.” 

Looking to 2025 and beyond, Miller said the CUSO will continue expanding on the life cycle strategy that’s been developed to date.

“Children have different needs, so we are going to separate our youth banking experiences into segments, including preteen, teenager and into early adulthood. There are several paths for adults, including attending college, getting a job or joining the armed forces,” he told Finopotamus. “We are building our solution to meet each consumer for their unique life stage and path.”