OCBC Bank will be launching a digital banking solution for Generation Alphas (or Gen Alphas), which refers to the generation of children born after 2009.
From Oct 20, the new OCBC MyOwn Account allows children and teenagers aged between seven and 15 to manage their own bank accounts digitally with boundaries and controls set by their parents. The initiative fills a gap in the market where most banks require sole account holders to be aged 16 and above. As such, teenagers and older children have bank accounts that are mostly held jointly with their parents and with digital banking access given to their parents only.
While the OCBC MyOwn Account will be registered solely under the child’s name, his or her parents will still have to open the account via their OCBC Digital app. The MyOwn account will provide the child with a debit card. Children will also be able to make cashless payments including scanning merchant QR codes and using PayNow.
Once the account is opened, parents can download the OCBC Digital app to their child’s smartphone where the child can create his or her own username and password to access the account.
In a first for a digital banking app in Singapore, account holders’ parents may monitor their child’s account activities – including fund transfers, payments, ATM deposits and withdrawals – through their own app.
The OCBC money lock feature, which prevents a portion of funds in the account from unauthorised digital access, will also be available to MyOwn account holders.
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The launch of the OCBC MyOwn Account follows 18 months of research into the behaviours, psychology and aspirations of parents and their children. The account also takes into consideration the feedback and insights from parents of teenagers and older children, who 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.
According to OCBC, the number of 16-year-olds opening their own OCBC Bank account when they can has risen by almost 25% y-o-y since 2022. By availing individual bank accounts even to those not yet 16, OCBC MyOwn account addresses the need for individual bank accounts at an early age, says the bank.
“Gen Alpha has never known a world without digital technology, but digital banking may be the one area they are not familiar with yet. OCBC MyOwn Account addresses this in a thoughtful way. It is about striking the right balance. It gives older children and teens ownership over their finances,” says Sunny Quek, OCBC’s head of global consumer financial services.
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“For instance, it has always been easy for kids to spend, but now that they can check their app and see how spending affects their account balance, they will better understand the value of money,” he adds. “This financial independence is counterbalanced by supervisory oversight from parents. The dashboard that parents have access to will give them peace of mind. As we head towards the official launch on Oct 20, we will continue to find ways to make the account extra special for older children and teens.”
In addition to the launch, a financial literacy programme will be created for Gen Alphas. The programme will include an overview of budgeting, the tracking of expenses, money management, the use of debit cards, online safety and scam protection. Advanced modules including the basics of investing will be rolled out progressively.
