Children savings total more than $650m
Banks should seize on the chance to provide services for children aged between six and 13, who currently have $653 million in personal savings, Roy Morgan research showed.
The research showed around 20 per cent of bank customers has children in this age bracket.
"There is obviously a major role to be played by parents to encourage their children to save but banks also need to play a role by providing suitable products and incentive," Roy Morgan industry communications director Norman Morris said..
"Success in the longer term will depend on a number of factors and experiences over many years but children's banking should at least provide a good foundation for an ongoing relationship."
Heritage bank had the largest proportion (25.8 per cent) of customers with children in that age bracket while the Bank of Queensland had the lowest at 18.7 per cent.
Out of the big four banks ANZ had the highest at 22.5 per cent, while the National Australia Bank came last with 20.2 per cent. The Commonwealth Bank of Australia had 20.3 per cent.
The Young Australians Survey of 2,800 children showed children save $285 on average, but there is disparity between the balance distribution, with 21.2 per cent having less than $50, while 10.2 per cent have $1000 or more.
Over a quarter of the children surveyed (26 per cent) either have no savings or cannot say if they do.
Morris added that while children's banking mainly pushes or education rather than savings levels, but with around one fifth having saved less than $50, more children need to be urged to save.
"The current trend is not meeting this objective," Morris said.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
