【Bank Watch】Banks Compete in Children's Finance Market; Financial Education Cannot Be Overlooked

(Original Title: [Bank Watch] Banks Compete in Children’s Economy; Financial Education Cannot Be Missed)

After the Spring Festival holiday, how to scientifically plan and manage children’s New Year money has become a hot topic among countless families, igniting banks’ enthusiasm for expanding into the underage customer segment. State-owned banks, joint-stock banks, and regional small and medium-sized banks are all entering the market, launching exclusive products such as “New Year Money Treasure” and “Children’s Customized Savings Certificates.” With features like low minimum deposits, interest rate increases, and parent-child joint management, they are competing fiercely, turning children’s economy into a new blue ocean for retail banking.

The funds behind children’s New Year money have characteristics such as long accumulation cycles, high stability, and low capital costs, offering multiple values for bank development. On one hand, these funds can effectively optimize banks’ liability structures, lock in long-term low-cost funds, and help ease the pressure of narrowing net interest margins. On the other hand, children’s accounts serve as an important link to family customers, allowing banks to preemptively secure young clients, promote integrated financial services such as education funds, wealth management, insurance, and precious metals, and achieve a win-win situation of increased customer stickiness and long-term revenue growth.

Different types of banks have their own特色 in children’s financial product offerings, precisely meeting diverse family needs. State-owned banks focus on functionality and security; for example, ICBC has launched parent-child dedicated accounts, allowing children to independently plan their funds while parents manage in real time. They also offer risk-appropriate funds like short-term bond funds and index funds to introduce financial literacy safely. Joint-stock banks emphasize特色化 and convenience; Huaxia Bank’s “Sunshine Growth Plan” offers various savings modes with a minimum deposit of just 50 yuan. China Merchants Bank’s “Jin Xiao Kui Manager” integrates deposit, fund, and insurance products into a one-stop solution. GF Bank’s customized cards give children independent accounts with parent-child joint management support. Regional small and medium-sized banks leverage high interest rates, low thresholds, and customization to create差异化优势; for example, Beibu Gulf Bank and Beijing Rural Commercial Bank offer children’s deposit products with significantly higher interest rate increases—some raising rates by 50 basis points over the original term, with 3-year fixed deposits reaching an annual rate of 1.9%, quickly attracting local families’ attention.

Beyond product returns and functions, banks are also putting thought into design to enhance appeal. Hangzhou Bank launched a My Little Pony-themed bank card, and Postal Savings Bank of China released a Year of the Horse limited edition card. With anime elements and personalized designs, these children’s bank cards are both practical and fun. Some rural commercial banks have introduced customized fixed deposits that not only feature auspicious interest rates symbolizing good wishes but also support adding growth messages and New Year money years, turning financial products into commemorative items for children’s growth and emotional connection.

Amid the ongoing narrowing of banks’ net interest margins and limited profitability of traditional businesses, expanding into children’s economy is an important transformation for banks from corporate and mass retail services toward refined management of customers across all ages and life cycles. It also presents an opportunity to build a “account + education + companionship” full-cycle financial service system through children’s accounts. By deeply engaging with children’s customer groups, banks can not only accumulate a stable, long-term customer base but also tap into the potential of comprehensive financial services for family clients, opening new growth space for retail business.

However, banks’ competition in children’s economy should go beyond product marketing and fund absorption. They must think long-term and integrate financial education into core services. Managing children’s New Year money is their first financial lesson; banks need to turn seasonal marketing into regular financial literacy services. On one hand, they should build a service system covering education fund planning, parent-child financial practice, and financial knowledge dissemination tailored to different stages of children’s growth, enriching low-risk education fund insurance and savings products that balance capital preservation, appreciation, and financial literacy cultivation. On the other hand, strict compliance and risk control are essential—products must be rated appropriately, and high-risk financial products should never be recommended to minors, ensuring the safety of children’s New Year money.

Implementing financial education also requires cooperation between banks and parents. Banks can use online popular science columns and offline parent-child financial salons to teach children basic financial logic such as saving, spending, and planning, fostering correct money concepts and risk awareness. When parents choose financial products for their children, they should abandon blind pursuit of high returns, consider the child’s cognitive level and fund usage plans, and select suitable products and terms. This process of managing New Year money can become a practical classroom for children to learn wealth management and establish rational consumption habits.

Children’s economy is not only a new business frontier for banks but also an important battleground for financial education. Only by deeply integrating financial education with product services can banks seize market opportunities, fulfill their social responsibilities, and lay a solid foundation for cultivating the next generation of financial consumers—achieving a unity of business value and social value.

This column article reflects only the author’s personal views.