Financial Inclusion: How Nigerian banks woo children

Banks in Nigeria are competing to outdo each other in winning not just adult but children customers.

And to a good extent, they are making progress. Before now, children were not considered eligible to own bank accounts. But things have changed.

Taking advantage of technology and the mandate to increase financial inclusion in the country, banks now offer parents and guardians the opportunity to operate functional accounts for their children from age zero to the adult age of 18.

Banks say child banking helps the underage learn early to save money and allows parents to save for the future of their wards. Here are the packages banks offer.

First Bank

Nigeria’s premier bank has packages called KidsFirst and MeFirst. They allow children between the ages of 0-12 years to own accounts.

A KidsFirst account is opened in the child’s name and operated by the parent and guardian with a zero account opening balance.

The account comes with a trendy gift item for the child when the account is opened with a minimum of N10,000. The account is automatically transited to the MeFirst account when the child attains 13.

The MeFirst is owned by teenagers between the ages of 13 and 17. It is designed to help teenagers adopt the culture of financial responsibility and cashless payment as they develop into adulthood.

They have access to desirable and trendy prepaid cards through which parents and guardians can credit weekly and monthly allowance and monetary gifts.

The account holders can also select from five exciting card design options that suit their trendy style.

Access Bank

Access Bank’s children package called Early Saver account is for children below the age of 16. This online account also covers the unborn and can be monitored from anywhere.

According to the bank, the account can be opened in trust for a child by the parent or guardian who will be the primary holder of the account.

The parent and guardian have the responsibility of managing this account until the child attains adulthood.

This account features an opening balance of N1,000 minimum and allows deposits of dividend warrants up to N10,000.

The account comes with clauses one withdrawal per quarter and no card services are allowed on it.

Beneficially, this account allows access to school fees in advance for parents, the account also comes with a free membership to the Early Savers Financial Literacy Club.

There is a free quarterly Early Saver newsletter and ease of saving through standing order instruction. It also includes invitations to exclusive Access Early Savers events.

Zenith Bank

Zenith Bank’s Children Account (ZECA) is specialised savings account for children between the ages of 0-17.

According to the bank, this account is designed to allow parents and guardians to save in Naira or U.S. dollars for their children’s future and to also teach them about savings from a tender age. This account is designed in two tiers for young children and teens.

Zenith Bank children’s account is for kids from the range of 0-12 while Zenith Bank’s account for teens is from 13 to 17 years.

It has zero account opening balance, an interest rate of 1.15 per cent with a standing order credit option and a cheque, draft and dividend lodgement.

Other features include the invitation to the annual Zenith Children’s parade and participation in the children’s day scholarship raffle draw.

Polaris Bank

Polaris Rainbow Savings account is an account designed for children between the range of 0-12 years with parents and guardians as the trustees of the account until the child is 18 years of age.

Like others, the account is designed to create banking awareness amongst children in a fun manner from an early age.

According to the bank, the account features an opening balance of N1,000 minimum and a competitive interest on savings.

The account has an automatic migration to Polaris Young Achievers Account at age 13 with SMS, email notification to parents and guardians and a debit card issuance, lodgment of cheques, dividend warrants in the child’s name of up N2 million.

The account also has access to consistent savings with standing instruction from the benefactor account and access to e-channel platforms.

Wema Bank

Wema Bank has its variant children account package called Royal Kiddies. This account is designed for children between zero and 12 years of age. According to the bank, this account is operated by the parent or guardian who may or may not have an account with Wema Bank.

The features of the account include a minimum opening balance of N2,000 and a competitive interest rate of 2.15 per cent with limited withdrawals, a withdrawal of one withdrawal per month to qualify for interest payment and lodgement of dividend warrants and cheques in the child’s name is allowed. No debit card would be issued on this account and a royal kiddies e-purse will also be made available on request.

The benefits include the eligibility of the child for the Wema annual educational award, it ensures continuity of the child’s education in case of the death of the parent or guardian. It also allows standing orders for regular savings from parent’s or guardian’s accounts for payment of school fees.