Step is launching a mobile banking app for teens, backed by $3.8 million in seed funding from CrossLink Capital, Collaborative Fund and Sesame Ventures, according to a press release.

Step, working in partnership with Evolve Bank and Trust, will offer traditional banking services via the app that allows parents to monitor teen spending. The bank is paying 2.5 percent interest on savings, no-fee access to 35,000 ATM machines, no overdraft fees and the ability to send and receive money through the app.

The bank also provides teens with a spending card that is linked to the app, allowing users to make mobile purchases, shop at retailers and make payments using Apple Pay.

"Teen expect instant services, but existing banks have failed to innovate and meet their needs," C.J. McDonald, co-founder and CEO of Step, said in the release. "Most banks charge fees and implement rules and restrictions that hurt teens financial progress."

Step allows teens to request funds through the app and parents can send funds and get complete transparency over what their kids are buying through the mobile device.

Step is scheduled to launch this Spring and allowing teens and parents to sign up on a wait list. The Step platform, available for Android and iOS, will be rolled out to customers on a first-come, first served basis, according to the release.