CHOICE welcomes ACT’s vote to ban bank marketing in schools, CHOICE is also calling on other states and territories to follow ACT and Victoria’s lead and stop banks from marketing to kids in schools.
“This is an important moment for the ACT community. School banking schemes are simply polished marketing programs designed to capture lifelong customers,” CHOICE Banking Expert Patrick Veyret commented “ASIC’s recent review was damning about school banking schemes like the Dollarmites. They found that the bank programs failed to improve long-term savings behaviour of children. ASIC found that banks, including the Commonwealth Bank used sophisticated marketing techniques to get school children to open an account with their bank,”
Mr Veyret explained that CHOICE’s own research found that the Commonwealth Bank program traps many people as customers for life. Mr Veyret said that the research found that 46% of people got their first account with Commonwealth Bank, and a third kept this account into adulthood.
“It is encouraging that the proposal to ban school programs had support from all major political parties in the ACT. Our kids deserve better than being served marketing dressed up as financial literacy. We are calling on other states and territories across Australia to follow ACT and Victoria’s lead,” Mr Veyret commented.