SINGAPORE: OCBC Bank’s plan to introduce Singapore’s first digital banking account for children aged 7 to 15 has raised some eyebrows online, with a number Singaporeans expressing concerns about the potential risks.
The new product, named the OCBC MyOwn Account, will allow children to have an account registered in their own name, provided their parents open the account on their behalf through the OCBC Digital app.
Alongside the account, OCBC will issue an OCBC MyOwn Debit Card, enabling young users to make digital payments independently, including the use of scan-and-pay merchant QR codes and PayNow.
The bank has emphasized that parents will retain oversight of their child’s financial activities via a parent-and-child dashboard, which provides transaction notifications, spending limits, password resets, and a tracking system for the debit card’s usage.
To make the offer more appealing to youth, OCBC has added perks, such as allowing children to customize the design of their debit card. Cardholders will also gain access to exclusive deals at popular youth destinations, including bubble tea shops, stationery outlets, and various e-commerce platforms.
In tandem with the launch of the OCBC MyOwn Account, the bank is introducing a financial literacy program tailored specifically for Generation Alpha. The program, available on the OCBC Digital Banking app, will educate young users on budgeting, online safety, and scam protection using interactive comic strips and characters designed to make learning engaging and age-appropriate.
Currently, Singaporean law requires individuals to be at least 16 years old to open a bank account in their own name. However, younger users can hold joint accounts with their parents.
Despite the convenience and educational aspects of the initiative, some Singaporeans voiced concerns about the potential pitfalls. Some are worried that young children could become easy targets for scammers, or that they may lack the maturity to manage digital banking responsibly.
Some Singaporeans online expressed concern about the additional burden on parents of monitoring their child’s online spending, given the already challenging task of supervising smartphone, laptop, and tablet use.
One Reddit user, u/Krazyguylone, raised concerns about the readiness of children to manage money, pointing out, “7-year-olds still have barely any conception of how to control spending (and some adults too). Bank card issuance shouldn’t be so early.”
Another Reddit, u/musiclover5566, questioned the ease with which children could make online purchases without informing their parents, asserting, “So easy to spend online without telling the parents. Damn. More work for parents to monitor kids. Already need to monitor their smartphone, laptop and school ipad(with that failed mobile guardian). Do you think parents are too free?”
Some also suggested that EZ-Link cards, which are widely used for public transport and retail purchases, could be a more suitable alternative for children, questioning the need for a dedicated debit card at such a young age.
OCBC, however, has held that the account was designed in response to growing demand from parents who want their children to develop financial independence while maintaining parental supervision.
OCBC’s Head of Global Consumer Financial Services, Sunny Quek, has described the OCBC MyOwn Account as a “thoughtful way” for Gen Alpha to gain familiarity with digital banking, with the bank adding that an 18-month study it conducted found that many parents of children under 16 were eager to introduce their children to the basics of digital banking at an earlier age.
The bank also reported a 25% year-on-year increase in the number of teenagers opening accounts at the age of 16 since 2022.
TISG/