Victorian Minister for Schooling James Merlino introduced the ban on Sunday, saying the Victorian faculty curriculum included monetary literacy.
“Victorian college students deserve high-quality monetary literacy, free from industrial pursuits – that’s why we’re banning monetary establishments from delivering faculty banking applications,” he stated.
“The Victorian curriculum units our expectations for monetary literacy and that have to be our focus. It’s time to draw a line underneath this challenge.”
The state authorities’s issues embrace complaints from college students, lecturers and households concerning the high quality of the schooling and the monetary literacy outcomes of the applications. There are additionally issues concerning the ways some banks have used, together with luring youngsters with prizes to construct model loyalty in younger youngsters. One other concern is the rates of interest supplied by way of the varsity banking applications are low in comparison with grownup banking merchandise. The company watchdog ASIC reviewed faculty financial institution applications in 2019 and located severe points with components of the applications.
A Commonwealth Financial institution spokesperson stated the financial institution was stunned and disillusioned with the choice which is able to have an effect on the bank-funded unbranded StartSmart monetary literacy program.
“This can have an effect on 1000’s of youngsters, households, faculty communities and volunteers, proper throughout the state.
“We’ve got been participating constructively with the ASIC overview, refined our program to include or deal with the preliminary findings, with submissions from communities, colleges and people proper throughout the nation exhibiting vital help for Faculty Banking.”
Client group Selection has known as upon different state and territory governments to observe the Victorian authorities’s transfer to ban the applications.
“Applications just like the Commonwealth Financial institution’s Dollarmites are little greater than slick advertising and marketing applications aimed toward main faculty aged youngsters,” Selection chief govt Alan Kirkland stated.
“Selection has by no means been capable of finding any proof that applications just like the Dollarmites have any affect on long-term financial savings habits. The one affect they’ve is to offer the Commonwealth Financial institution a gentle stream of younger clients, a lot of whom stick to the Commonwealth later in life.
“We welcome the Victorian authorities’s dedication to real monetary literacy applications.”
Begin your day knowledgeable
Our Morning Version e-newsletter is a curated information to crucial and fascinating tales, evaluation and insights. Enroll here.
Sarah Danckert is a enterprise reporter.