ASIC seeks public input to review of school banking

ASIC is seeking the public’s view of school banking programs as part of its ongoing review of their use and impact in primary schools (refer 18-313MR).

Through this review into school banking, ASIC is seeking to better understand:

  • how these programs are implemented
  • how they are marketed to school communities
  • how students are engaging with these programs, and
  • the type of accounts established through these programs while they are at school and in later years.

Members of the public and organisations interested in the issue are encouraged to respond to questions posed in the Consultation Paper 323Review of school banking programs.

school banking

Community opinions will help inform the development of high-level principles on the implementation of school banking programs.

ASIC Commissioner Sean Hughes said, ‘Young people are engaging with money every day and they need to understand financial concepts and develop the skills to identify financial services that are right for them. Financial literacy is embedded in the Australian Curriculum, and needs to be – and there is a long history of school banking programs in Australian schools.

’It is important for ASIC to understand the range and extent of impacts that school banking programs can have on students, parents and school communities, as part of our responsibility to ensure the financial sector is delivering for all Australians, and especially for future generations of financial consumers.’

ASIC has already consulted with a diverse range of stakeholders including primary school principals, parents, present and past students and organisations from the education and consumer advocacy sectors, as well as the authorised deposit-taking institutions offering the programs.

It is expected the review will be completed in early 2020.

ASIC’s role in building the financial capability of Australians

ASIC is the lead Australian Government agency for financial capability, consistent with its strategic priority and statutory objective to promote confident and informed consumers and investors. ASIC’s financial capability program includes:

  • leading the National Financial Capability Strategy
  • providing consumer information via ASIC’s MoneySmart
  • delivering ASIC’s MoneySmart Teaching Program
  • implementing ASIC’s Indigenous Outreach Program.

The National Financial Capability Strategy, led and coordinated by ASIC, seeks to broaden reach and impact of financial capability initiatives that assist Australians to be in control of their financial lives.

What are school banking programs?

School banking programs are programs where a bank has a relationship with a school to offer deposit products to their students. These students are encouraged to establish bank accounts and make ongoing deposits into those accounts at the school.