OCBC launches MyOwn to reach out to children

Generation Alpha is for young people born between the early 2010s and mid-2020s, particularly exposed to new technologies. A generation that is now entering adolescence, and which represents a new target for banking players such as OCBC. The Singaporean bank has dedicated a new banking offer to help them learn how to manage their finances and make payments through digital media, with the help of their parents.

FACTS

• From 20 October 2024, children aged 7 to 15 will be able to manage their own bank accounts digitally via the OCBC Digital app. It is to meet the need of the Alpha generation when it comes to managing their finances that OCBC has launched its new offer MyOwn, combined with an OCBC debit card MyOwn and various digital payment services.
• Intended for children, this offer is nevertheless based on strict parental supervision. Parents are invited to open the OCBC MyOwn bank account for their child, via their own OCBC Digital application. This same application must also allow them to track the financial activity of their child.
• The application centralizes on the dashboard data concerning:
• transfers of funds,
• deposits or withdrawals made with distributors,
• the use of the child’s debit card,
• information regarding the use of digital payment methods, PayNow (the local instant payment service) or via Qrcodes scanning at merchants.
• It also allows parents to set transaction limits on the account and debit card. Notifications and emails are also sent to parents when transactions are recorded on their child’s account.
• A financial education program specifically designed for the Alpha generation will also be launched on October 20, 2024 with the OCBC MyOwn account. This program will address various topics relevant to informing its target, namely budget management, pocket money spending and online security.

CHALLENGES

• Supporting financial literacy among the youngest: With the rise of smart devices in Singapore, it has become easier for children to manage their expenses through a digital app. OCBC is now committed to offering them a service tailored to their needs, focused on pedagogy.
• Optimize co-management and support: If the OCBC MyOwn account is aimed at younger children, their parents are clearly identified by the bank as the co-managers of these accounts and as drivers for their child’s financial learning.
• Adapt to an increasingly digital world: More and more merchants are adopting digital payment via tools such as PayNow or through the scan of Qrcodes in Singapore. For this reason, the OCBC MyOwn account will also allow teens to easily make digital payments, along with a card presented as just one option among others. This effort to standardize digital payment services aims to adapt to a target for which the use of a smartphone to make payments can be natural, rather than having to use a card for example.
• Boost prospecting: OCBC has seen an increase in the number of bank accounts opened by 16-year-old clients by 25% year over year since 2022. She is now capitalizing on her attractiveness to younger people to ensure the success of her new MyOwn offer.

MARKET PERSPECTIVE

• The bank conducted 18 months of research on parents and children’s behaviour before launching its new solution. The market research revealed that parents were very keen to introduce their children to banking and independence while maintaining control of their finances, particularly through digital tools.
• This is why the OCBC MyOwn account now complements the bank’s product range, which was already supported by the Child Development Account (CDA) or the OCBC Mighty Savers program. The latter encourages savings among children under 16 and has grown at a rate of 10% per year over the past three years.
• The rejuvenation of banks' client portfolios is continuing at international level, as this target attracts more players (Monzo in the UK, PixPay in France and Westpac also in Australia). All continue to offer cards, integrating them into a more holistic digital banking experience.