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May 19, 2020updated 11 Jan 2022 10:34am

Banks can establish parental trust by offering financial education for children

By Evie Rusman

Looking beyond Covid-19, banks looking to benefit from children’s banking should build a reputation with parents as a trusted source of knowledge while engaging their children with fun and educational content.

For parents, making sure their child is financially literate can be a daunting task. While the subject can make an enormous life difference, it is rarely taught in schools with children too busy learning everything else. Meanwhile, many parents neither have the time nor the expert knowledge necessary to teach it confidently.

However, GlobalData’s 2020 Banking and Payments Survey has found that in parents’ minds, banks are well suited to offer trusted financial content. Our results show that “teaching the importance of money management and saving” was the top aim of a majority of parents with children 16 years old or younger across Asia Pacific when opening a child’s bank account.

These results show conclusively that educational content should be the priority focus for banks when venturing into children’s banking. Almost always, the need for financial literacy is stronger than finding a good interest rate or even using the app to save money, with other factors like controlling children’s spending or giving kids their own account rarely selected. Banks that cultivate themselves as a fountain of knowledge will find they develop a deep level of trust with parents and children, who respect the bank for giving them knowledge that significantly helped them in their life.

Some are already becoming financial content providers. NatWest recently launched a free PS4 game called Island Saver, marketing it comprehensively to parents as a way for children to learn good habits such as saving and recycling.

However, banks not only need to get parents on board but also need to engage children with the content they are producing. In NatWest’s case, Island Saver lacks interesting game mechanics, with in-game banking tasks like entering a PIN number likely to leave children bored after playing once.

Instead banks should engage children by making content that helps them understand the real world. The 2011 game Savings Spree, for example, contains behavioral aspects to its mini-games, teaching kids about the nature of rewards for hard work and taking risks with money in a way that is fun and relatable. This is why Tycoon and other business simulators have proved consistently popular over decades in the gaming scene.

By offering fun, educational content for children, packaged with an easy-to-use savings account that parents can deposit money into, banks can successfully start developing a reputation as experts in financial literacy.

Related Report
Pages: 20 Published: May 2020 Report Code: GDFS0442CA Add to Saved List Overview Contents Canadian Imperial Bank of Commerce (CIBC) is a provider of personal, small business, and commercial and corporate banking solutions. Under personal banking it offers accounts, overdrafts, credit cards, loans, mortgages, investments, retirement planning, travel and creditor insurance, advisory, and other supporting solutions. Under small business banking it provides cash management, merchant services, accounts, credit, specialty services, corresponding banking, trade finance, and foreign exchange. The commercial and corporate banking segment provides business solutions, global investment banking and management, and custody services. It serves individuals, SMEs, corporates, HNW and UHNW individuals, and wealthy families. It has operations in Europe, Asia Pacific, North America, and the Caribbean. This report provides insights into CIBC's digital transformation strategies and innovation programs. It also gives an overview of its technology initiatives, covering partnerships and product launches, as well as insights on each technology initiative including technology theme, objective, and benefits. In addition, the report includes details of the company's estimated ICT budgets and major ICT contracts. Scope – CIBC is strengthening its focus on the use of innovative technologies to enhance its digital banking capabilities. Cloud, AI, blockchain, cybersecurity, big data, and robotic process automation are among the technologies the company is focusing on. – To explore the potential use cases of blockchain, CIBC has partnered with several financial institutions to establish R3, a distributed ledger technology platform. CIBC also co-launched DataVault Innovations, which offers analytical data for the fixed-income and derivatives market. – In 2016, CIBC launched CIBC Innovation Banking, CIBC Data Studio, and CIBC Live Labs, which act as innovation hubs for financial institutions, technology startups, and entrepreneurs to explore emerging technologies and build digital solutions. Reasons to buy – Learn about CIBC's fintech operations, including investments, product launches, partnerships, and acquisitions. – Gain insight into its fintech strategies and innovation initiatives. – Discover which technology themes are under the group's focus. Companies mentioned Paymi iGTB Plaid Borrowell Thinking Capital Wolters Kluwer SecureKey Technologies Chatkit VisiQuate R3 Digital Currency Group Dynamics SecureKey Technologies Receipt Bank Conversica Table of Contents Table of Contents Overview Digital Transformation Strategy Accelerators & In-House Labs Pricing Single User:$1,295 Site:$2,590 Enterprise:$3,885 Discounts available for multiple report purchases. +44 (0) 161 359 5813 Join our mailing list Email
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