Launch of OCBC MyOwn Account – Speech by Ms Sun Xueling, Minister of State, Ministry of Home Affairs and Ministry of Social and Family Development

1. A very good morning to everyone. To our parents and our children who are here today, it is a Sunday morning but we are gathered here today to learn two very important things – on financial literacy, as Ms Helen Wong (Group CEO of OCBC bank) has mentioned, and also on digital financial safety. A family that learns together also grows together. So, I have no doubt that this morning is going to be an extremely meaningful one for our parents, for our children and for our families that are gathered here today.

Introduction

2. First and foremost, I would like to congratulate the OCBC team on the launch of the OCBC MyOwn Account. This is a new product that will allow children and youths aged 7 to 15 years old to manage their own bank accounts under parental supervision.

Importance of Teaching Financial Literacy to Children

3. As Singapore becomes more digitalised, our children are growing up with less interaction with physical cash. So, while we move forward on digitalisation and on more seamless transactions, at the same time, there must be appropriate safeguards in place. And that is where a partner like OCBC, is extremely important as we embark on this digitalisation journey. From contactless payments to online transactions, the way our children perceive and handle money is very different from older generations. It can be easy for them to forget that digital payments are tied to real money and savings. Hence, it is crucial to help our children understand that every tap or click has a real financial impact.

4. Allowing children to manage their own bank accounts from a young age creates the opportunity for them to learn the value of money, and the fundamentals of saving, budgeting, and making financial decisions. It gives them direct ownership and responsibility over the funds that they have, because online transactions and usage of their own debit cards will directly impact the balance in their bank accounts.

5. I am also glad to know that OCBC will be rolling out a special financial literacy programme for youths in tandem with the OCBC MyOwn Account. Through the OCBC Digital app, youths can access content on topics like budgeting and tracking of expenses. Training our children and youths to plan and track their savings to reach certain goals also helps instil responsible money habits that follow them into adulthood.

6. Financial literacy promotes not just responsibility, but also confidence and independence. I'm sure our parents have felt that before. When my children save towards a goal, and they achieve that goal, it is empowering. And that is something we want to work with them on. So, it empowers our children with the knowledge to make informed decisions, and they diligently save towards their goals - this empowerment gives a sense of control, and this will enable them to confidently manage money matters as they grow older.

Educating Children on Digital Safety

7. However, teaching financial literacy to our children is only part of the solution. As I mentioned earlier, digital financial safety is just as critical as financial literacy. While we guide our children in leveraging the convenience and opportunities brought about by managing money in the digital space, we must also educate them on the associated dangers, such as an increased exposure to fraud and scams.

8. I stand before you today also in my capacity as the Inter-Ministerial Committee on Scams Chairperson. I've been working very, very hard on anti-scam prevention and OCBC has been an incredibly helpful partner in this journey.

Youths Being Susceptible to Scams

9. Our youths are often more active in the digital space and are sometimes less experienced in dealing with suspicious behaviour, so they can be unsuspecting targets for scams. The convenience of online transactions also increases the chances of falling prey to scams, as money can be quickly transferred.

10. So, it is heartening that OCBC has a robust suite of security measures to help customers guard against malware and scams, and that such features are available to OCBC MyOwn Account holders. For those setting up the OCBC MyOwn Account for your children, I encourage you to guide them through the various features, to enable them to bank safely and securely.

(a) Take for example, the OCBC Money Lock feature. This is not something that we should just educate our children on. I hope that us, collectively as adults, also take steps to install Money Lock. Because this is a very safe function for us to prevent monies from being digitally transferred without our knowledge. So, this is good for everyone. The OCBC Money Lock feature provides an extra layer of protection against scams, as funds can only be released after identity verification. And parents can take the opportunity to discuss with your children the amount of money to be kept locked under this feature. Even if it's $1 put under Money Lock, it is $1 that is protected. So, this amount is kept locked and not used for daily usage. Whereas you can have the monies that are not put under Money Lock accessible to you for daily usage, so you just have to set aside a reasonable amount that you feel needs to be locked.

(b) Children should also be aware of the OCBC Kill Switch feature. They can use this to block access to their accounts and cards if they suspect that their banking or card details have been compromised.

11. The OCBC MyOwn Account also gives parents access to a dashboard that allows them to monitor their children’s accounts. And this is useful for parents to keep watch for unusual transactions given the young age of these account holders.

Conclusion

12. So, as you can see, there are many things that OCBC is launching together with their unique MyOwn Account today, and I'm sure that through this morning's activities, our children will have fun learning about financial literacy, about digital safety. And while we all know that they will face new challenges in the digital financial space, we can all work together to educate them on financial literacy and digital safety early. This will help nurture financially independent individuals who can navigate the digital banking world safely and responsibly.

13. Thank you.