When it comes to attracting Australia’s future credit card and mortgage holders, financial institutions are using a combination of new and old-school strategies to catch them young.
Informative sites such as Commonwealth Bank’s Beanstalk portal, which offers games and activities for young bankers to promote financial literacy, and Westpac’s Pay Pig pocket money app are examples of the new – but school banking also alive and flourishing, with an impressive eight institutions researched by CANSTAR offering school banking programs. Commonwealth Bank offers Australia’s largest school banking program serving more than 3,800 schools around the country.
Which banks offer school banking?
- B&E Personal Banking
- Bendigo Bank
- Commonwealth Bank
- ECU Australia
- Hume Bank
- Newcastle Permanent Building Society
- The Mutul
What can kids earn on their money?
Australia’s financial institutions are also offering good old-fashioned incentives in the form of higher interest rates – certainly higher that what’s on offer for parents.
“Those aged under 18 can potentially earn more than five percent per annum on their money if they make regular savings,” said CANSTAR Head of Research, Mitchell Watson.
“This compares to the top at-call interest rate available on our database for adults of 3.40 percent, which is a promotional rate for only four months. There is obviously an advantage to financial institutions in attracting young customers.”
The institutions that offer outstanding value
Each year CANSTAR awards both a Junior Banking Award for institutions offering an outstanding combination of savings product, financial literacy education and school banking for those aged 12 and under, as well as a Youth Banking Award for institutions offering an outstanding combination of savings and transaction products, financial literacy education, online banking functionality and distributions for youth aged 13 to 18.
In both of these categories CANSTAR award both a Bank of the Year and a Customer-owned Bank of the Year award.
In 2016 the winning institutions are as follows
“For the seventh consecutive year, the Commonwealth Bank has cemented itself as Australia’s leading bank in Youth Banking and Education. This year they were the clear winner due to their long established school banking and financial literacy program,” said CANSTAR Head of Research, Mitchell Watson.
“Commonwealth Bank has long been the biggest player in the school banking sector serving more than 3,800 schools Australia wide. The continue to be the market leader in financial education proving seminar content to both primary and secondary students on money, saving, spending and banking topics. They also provide individually tailored workshops to secondary students on gaining employment, superannuation and loans and credit.
“Commonwealth Bank also offer their “Beanstalk” portal on their website with games, colouring activities and educational resources to generate financial literacy skills in junior bankers.”
When it comes to the customer-owned space, Hume Bank is consistently the market leader, winning the CANSTAR award for six years in a row.
“Hume Bank offers the largest school banking network of the customer-owned institutions and their education across both primary and secondary ages is impressive,” said CANSTAR’s Mitchell Watson.
“Hume Bank’s educational resources are the key factor that separate them from their competitors in this award. Getting Australia’s youth engaged with saving and developing that engagement into a habit is one of the most important factors at a young age.”
CANSTAR congratulates both Commonwealth Bank and Hume Bank on their achievement. The report can be viewed here.
For further information:
Editor in Chief
Ph. (07) 3837 4151 / 0400 127 733
CANSTAR provides Australia’s interactive online research service in consumer and business finance. Founded in 1992, CANSTAR Pty Limited is Australia’s researcher of retail finance information for over 250 institutions such as Banks, Building Societies, Credit Unions, Finance Companies, Brokers, Mortgage Originators, Life Companies and finance related Internet Portals. CANSTAR customers use the extensive database for competitor analysis as well as a means of disseminating their product range. CANSTAR also distributes this information to print and electronic media for publication and to Agents, Accountants, Brokers and Internet Portals for use in advising their clients.
What are the CANSTAR star ratings?
CANSTAR researches, compares and rates the suite of banking and insurance products listed below. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.
|Account based pensions||Managed investments|
|Business banking||Online banking|
|Business life insurance||Online share trading|
|Car insurance||Package banking|
|Credit cards||Personal loans|
|Deposit accounts||Reward programs|
|Direct life insurance||Superannuation|
|First home buyer||Term deposits|
|Health insurance||Travel insurance|
|Home & Contents||Travel money card|
|Home loans||Youth banking|
COMPLIANCE DISCLOSURE and LIABILITY DISCLAIMER
To the extent that the information in this report constitutes general advice, this advice has been prepared by CANSTAR Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“CANSTAR”). The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. CANSTAR provides information about credit products. It is not a credit provider and in giving you information it is not making any suggestion or recommendation to you about a particular credit product. Please refer to Canstar’s FSG for more information.
The information in this report must not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, or stored for subsequent use for any purpose, in whole or in part, in any form or manner or by means whatsoever, by any person without CANSTAR’s prior written consent. All information obtained by CANSTAR from external sources is believed to be accurate and reliable. Under no circumstances shall CANSTAR have any liability to any person or entity due to error (negligence or otherwise) or other circumstances or contingency within or outside the control of CANSTAR or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication, or delivery of any such information. Copyright 2014 CANSTAR Research Pty Ltd A.C.N. 114 422 909
The word “CANSTAR”, the gold star in a circle logo (with or without surmounting stars), are trademarks or registered trademarks of CANSTAR Pty Ltd. Reference to third party products, services or other information by trade name, trademark or otherwise does not constitute or imply endorsement, sponsorship or recommendation of CANSTAR by the respective trademark owner.