Calls To Ban School Banking Schemes Including Dollarmites
Aussie consumer group Choice wants a ban on school banking schemes such as the Commonwealth Bank's Dollarmites program, claiming these programs see banks paying "kickbacks" to schools to "flog their products".
Choice say the long-running Dollarmites program relies on "conflicted remuneration" to sign up young customers, as the CBA pays schools when new accounts are opened, or when cash is then deposited.
CBA say they plan to restructure their commissions to Australian schools, after paying $2.3 million last year alone.
Choice chief executive Alan Kirkland said, "School banking programs such as the Commonwealth Bank's Dollarmites program give banks unfettered access to market their brand to schoolchildren"
"It is time to take banks out of financial literacy education, and to stop them from paying schools commissions to flog their products,"
However the bank says the program, which was established in 1931, actually gives schools a "fundraising opportunity".
A bank spokeswoman said,
"Commonwealth Bank has a strong and respected track record of providing quality financial education programs in Australia. Our programs, which have been running in Australian schools for more than 85 years, have been widely commended by participants, parents and educators,"