Banks trying to catch them young

Banks trying to catch them young

CANSTAR research finds that technology + a good interest rate = value for kids

When it comes to attracting New Zealand's future credit card and mortgage holders, financial institutions are using a combination of new and old-school strategies to catch them young.

Innovative games such as Westpac's, Zombie Cash-Tastrophe and ASB's GetWise video playlist on YouTube are goldmines your kids can access from any internet-connected device. And with kids being very app-savvy, offerings such as Westpac's Cash Critter app or Kids Count Money NZ are great.

School banking is also still standing strong, with CANSTAR research estimating that more than 870 schools are offering a program, with thousands of educational workshops being run each year.

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, both kids and teenagers, can potentially earn up to four percent on their savings if they are savvy about spending and saving," said CANSTAR General Manager – New Zealand, Jose George.

"This compares to the top rate available on our database for adults of three percent. There is obviously an advantage to financial institutions in attracting young customers."

The institutions that offer outstanding value

CANSTAR's Bank of the Year – Junior Banking Award recognises the institution that is able to provide appropriate support for financial education, school banking, content or resources for both schools and parents, and a savings account to give kids aged 12 and under a head start. Taking CANSTAR's Bank of the Year – Junior Banking Award is ASB.

"ASB offers a winning combination of competitive interest rates and terrific education tools – both online and in-school," said Mr George.

"They offer a comprehensive offering of financial education workshops for both primary and secondary students and last year managed to conduct a total of 4,134 workshops in New Zealand schools!

"The online tools are also comprehensive; the Getting Kids Startedwebsite makes it easy to navigate ASB's products and educational resources designed for parents and kids beginning to learn about money. And another impressive innovation launching this year is the Clever Kash app, a digital moneybox.

"Getting kids engaged with saving and developing that engagement into a habit is one of the most important factors at a young age."

CANSTAR's Bank of the Year – Youth Banking Award places its focus on the institutional support in finance education, engagement through workshops, and great savings and transaction accounts for teenage youth to age 18. Taking CANSTAR's Bank of the Year – Youth Banking Award is Westpac.

"The transition from junior to youth can be hard enough for those in their first job, nearing graduation, or keeping up with the latest trends, and institutions should be helping them to understand how to manage their finances," said Mr George.

"Westpac does a terrific job of this with outstanding value savings and transaction accounts that are competitive across both interest rate and fees, as well as comprehensive educational resources.

"Westpac also offer a rich and intuitive online functionality that as adults we appreciate and admire - but which our kids simply expect."

CANSTAR congratulates both ASB and Westpac on their achievement. The report can be viewed here.

ENDS

ends

© Scoop Media