OCBC to enable kids from age 7 to operate own bank accounts, debit cards

SINGAPORE: OCBC will soon enable Generation Alphas, or children aged 7 to 15, to bank digitally via their own accounts and to hold debit cards.
But there’s a catch.
The OCBC MyOwn account, available for this age group from Oct 20, will operate “within boundaries and controls set by parents”, the bank said in a media release on Tuesday (Sep 3).
Due to the minimum age requirement, a vast majority of teenagers and older children under 16 years old cannot operate their own bank accounts, OCBC noted.
“Instead, their bank accounts are mostly held jointly with their parents, with digital banking access given only to their parents,” it said.
The bank said that the OCBC MyOwn Account will be registered solely under the child’s name. However, parents must be the ones to open the account via their OCBC Digital app.
Parents can download the OCBC Digital app to a separate smartphone and their child can create their own username and password to access their bank account digitally once an account is opened.
Additionally, an OCBC MyOwn Debit Card will be provided with the account and the child can “choose their favourite design from a range of attractive options”, said the bank.
Parents will be able to monitor their child’s account activities from the app in real time.
This includes the child’s funds transfers, payments, ATM deposits or withdrawals, as well as debit card usage, said OCBC.
This parent-and-child-view dashboard is a first for a digital banking app in Singapore, it added.
There are certain account controls only accessible via the parent’s app, and this will be “progressively rolled out”.
“These include setting transaction limits on the account and debit card, updating their child’s contact details, resetting card and PIN, and reporting a lost debit card.” 
Parents can also be immediately updated via push or email notifications when their child makes a purchase or funds transfer.
They will also be able to decide when their children can access the bank account or use the debit card.
OCBC said in response to CNA’s query that the OCBC MyOwn account will have the same “stringent safeguards” its digital app has in place.
These include its anti-malware security feature, money lock feature and a kill switch.
They can also lock and unlock their debit card to prevent digital banking, debit card and ATM access if they suspect their account has been compromised.
OCBC said in response to CNA’s query that it “has a robust surveillance system that screens and flags suspicious transactions”.
It will also be ramping up its education efforts on how to keep safe while banking digitally.
“This will be done through comic strips, incorporating relatable characters and compelling storylines,” OCBC said.
The launch of the OCBC MyOwn Account follows 18 months of extensive research into the behaviours, psychology and aspirations of parents and their children, said the bank.
“Feedback and insights from parents of teenagers and older children aged under 16 indicate they want to give their children an early start to learning digital banking basics and financial independence, yet still want to supervise their child’s financial behaviours,” it added.
A special financial literacy programme will be rolled out with the launch of the MyOwn Account, said OCBC.
The programme will provide an overview of budgeting, tracking of expenses, money management, debit card usage, online safety and how to protect themselves from scams.
The content will be available on the child’s OCBC Digital app, so they can be “equipped with the necessary knowledge and skills to navigate their finances and the digital financial world responsibly”, said OCBC.
Meanwhile, when queried about its products for teenagers and older children, DBS shared with CNA about its POSB Smart Buddy programme.
Launched in 2017, the programme is an integrated in-school wearable digital savings and payment programme.
Through this programme, students and their parents can track spending and saving patterns via the POSB Smart Buddy app, a DBS spokesperson said.
Students can set savings goals, while parents manage daily allowances and monitor real-time purchases.
More than 192,000 students, including teenagers, can use POSB Smart Buddy cards and smartwatches to “make payments at school vendors and over 10,000 NETS merchants islandwide”, its spokesperson said.