• Published on 3 September 2024
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OCBC launches digital banking for Generation Alpha

OCBC will be the first bank in Singapore to enable ‘Gen Alpha’, the generation of digital natives born after 2009, to bank digitally via their own bank accounts.

Today, a vast majority of teenagers and older children under 16 years old cannot operate their own bank accounts as the minimum age to open most bank accounts is 16. Instead, their bank accounts are mostly held jointly with their parents, with digital banking access given only to their parents.

OCBC MyOwn account addresses this gap. Available from 20 October 2024, teenagers and older children aged between seven and 15 will be able to operate their own bank accounts digitally via the OCBC Digital app within boundaries and controls set by parents. Although the account is registered solely under the child’s name, parents must be the ones to open the OCBC MyOwn account. This is done via the parent’s OCBC Digital app. 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. Once the account is opened, parents can also 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.

Parents will be able to use their own OCBC Digital app to monitor their child’s account activities. Their child's fund transfers, payments, ATM deposits or withdrawals, and debit card usage, will be displayed on their app's dashboard. This parent-and-child-view dashboard is a first for a
digital banking app in Singapore.

Digital banking enables financial independence for teenagers
Given that parents in Singapore typically already allow teenagers to use a smart device, OCBC MyOwn account will be a natural choice. It enables teenagers to make digital payments more easily while out with friends, without having to rely on their parents. This is especially important as some merchants are going cashless, and essential services like transportation and delivery apps are more conveniently paid through digital means.

Teenagers will be able to scan-and-pay merchant QR codes or use PayNow via the OCBC Digital app. In addition, with their debit cards, they can also make contactless payments, unlocking exclusive in-store and online deals at selected merchants including their favourite bubble tea shops, food outlets, stationery shops and e-commerce platforms. At the same time, with access to a simplified dashboard on their OCBC Digital app, these teenagers will be able to monitor their expenses and keep an eye on their account balances.

While the bank account is in the teenager’s name, parents can still supervise their teens’ account activities in real-time via the separate dashboard of their teenager’s account on their own OCBC Digital app. They can be updated immediately via push or email notifications when their child makes a purchase or funds transfer. Certain account controls are only accessible via the parent’s OCBC Digital app and will be progressively rolled out for parents. These include setting transaction limits on the account and debit card, updating their child’s contact details, receiving notifications on all their child’s account activities, resetting their teen’s card and PIN, and reporting a lost debit card.

Fourteen-year-old secondary school student Ng Yi Heng, who currently has a joint account with a parent, is looking forward to the launch of OCBC MyOwn account. He said: “I can’t wait to have my account and debit card. It will be so much more convenient when I go out with my friends, not just to pay for meals, but also for when I want to rent a bike to cycle home or around my neighbourhood using an app. I won’t have to keep using my parents’ credit card and can use my card.”

Early financial education for older children
Prior to entering their teenage years, some children’s device screen time is restricted by parents and they would not have their personal smart device. Rather than payments, the bank therefore expects OCBC MyOwn account’s usefulness for this segment to centre on savings and to facilitate early financial education.

For instance, parents can use their OCBC Digital app, which has a dashboard of their child’s OCBC MyOwn account, as a teaching tool. They could make deposits via ATMs or digital banking transfers and show their child how their account’s balance grows. The educational aspect of OCBC MyOwn account is further strengthened as it is solely in the child’s name and therefore instils a sense of ownership. This helps to encourage a more prudent mindset.

Parents can continue to monitor their child’s account activities and decide when the appropriate time is to enable their child to access their bank account via the OCBC Digital app on their personal smart device. They can also decide when to enable their child to operate and use their own debit card.

“This account will be a good way to get my daughter interested in financial literacy, tracking her savings, and learning to control her spending,” said Alicia Ching, 38, a luxury marketer with an eight-year-old daughter. Her daughter currently has a joint bank account with her husband, and they often deposit cash from red packets received on birthdays and Lunar New Year celebrations into the joint account via ATMs. “Being able to pick her debit card design will make the start of her financial journey fun and give her a sense of ownership. She’ll finally be able to use her card to deposit her ‘angpow’ monies at the ATM.”

Demand for Gen Alpha bank accounts rises

The launch of the OCBC MyOwn account follows 18 months of extensive research into the behaviours, psychology and aspirations of parents and their children. 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.

The number of teens who had opened their own individual OCBC Bank account at the first opportunity – at 16 years old – has risen by almost 25% year-on-year 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.

The launch of OCBC MyOwn account adds to the bank’s comprehensive stable of products and services aimed at helping parents plan for their children’s financial future. This includes the OCBC Child Development Account (CDA), where OCBC has cornered more than 50% of the CDA market share. In addition, the OCBC Mighty Savers programme, which helps parents to teach their younger children under 16 years old to save, has also continued to attract strong demand with accounts growing 10% year-on-year in the last three years.

Sunny Quek, OCBC’s head of global consumer financial services, said: “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 thoughtfully addresses this. It is about striking the right balance. It gives older children and teens ownership over their finances. 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. 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 20 October, we will continue to find ways to make the account extra special for older children and teens. Partners are key to this. Through an upcoming collaboration, we can bring a touch of magic to the banking experience.

“By leveraging our strengths as a regional leader in wealth management, we have been able to develop a comprehensive suite of products that caters to parents’ and children’s financial needs. This spans infancy, teenage and tertiary education years, and even extends to when they get their first jobs. OCBC MyOwn account is another example of a unique proposition, and we believe that it will help us to become an even stronger player in this segment.”

Comprehensive financial literacy programme
A special financial literacy programme created specifically for Gen Alpha will be rolled out with the launch of OCBC MyOwn account. 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. Advanced modules that offer a deep dive into specific topics such as the basics of investing, will be rolled out progressively.

To engage Gen Alpha in a relatable and entertaining way, the programme’s content will be delivered through comic strips. By incorporating relatable characters and compelling storylines, the comic strips will encourage them to apply their financial knowledge in practical situations, fostering a deeper understanding of financial decision-making.

The financial literacy content will be available on the child’s OCBC Digital app, so Gen Alpha can be equipped with the necessary knowledge and skills to navigate their finances and the digital financial world responsibly.

With the use of OCBC MyOwn account, Gen Alpha can also learn how to bank safely. The OCBC Money Lock feature will be available to OCBC MyOwn account holders. It enables a portion of funds in the account to be securely locked, preventing them from unauthorised digital access. A “kill switch" can also be activated to freeze their account. Using the OCBC Digital app, they can lock and unlock their debit card to prevent digital banking, debit card and ATM access if they suspect their account has been compromised.

Re-disseminated by The Asian Banker