"This is an important moment for the ACT community. School banking schemes are simply polished marketing programs designed to capture lifelong customers," says CHOICE Banking Expert Patrick Veyret.
"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," says Mr Veyret.
"CHOICE's own research found that the Commonwealth Bank program traps many people as customers for life. We found that 46% of people got their first account with Commonwealth Bank, and a third kept this account into adulthood," says Mr Veyret.
"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," says Mr Veyret.
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In 2019 over 500 teachers, parents and community members helped CHOICE expose the flaws in school banking and shared their perspectives with ASIC's review.
In 2018, CHOICE awarded the Commonwealth Bank a Shonky Award for their Dollarmites program. CHOICE called the scheme a "relentless marketing program targeted at young minds."