Banks in Nigeria have devised numerous children’s products to catch them young.
Products bear different names in different banks but the general idea is to enable parents and guardians save for the educational needs of children and wards.
Nearly all banks are in on the game. But only a few communicate its importance and market it the way they do other products.
Banks promote children’s accounts occasionally. May 27, the global day for celebrating children, is set aside by banks to also educate parents on the need to key into this platform to ensure a brighter and better future for children.
Banks also deploy back to school initiative to reach out to this target market. But how many of them really make an impact?
“Communication of this product is not well orchestrated and in the case of well channeled communication it is lopsided because the banks most often target the rich rather than the poor the product is meant for,” said Ndifreke Akpan, a marketing expert.
Potpourri of products
Nigeria’s marketing environment is an interesting one. The bandwagon effect catches on in every sector, from telecommunication to banking.
One organisation launches a product or service and competition follows without proper impact and feasibility study. Every bank has children related and/or focused product.
The known ones include First Bank (KidsFirst and MeFirst), Zenith Children Account (ZECA), Ecobank (My First Account), Heritage Bank (Bud Savings Account), and Access Bank (Early Saver’s Account).
They also include GTBank (Smart Kids Save), United Bank for Africa (Gold Savings Account), First City Merchant Bank (Classic Savings Account), Diamond Bank (D-Tap Kiddies Account), and Skye Bank (Skye Rainbow Saving Account).
Despite the focus on young people, however, very few products are known by parents and guardian.
A parent and businessman who lives in Lagos, Adekunle Bamgboye, confirmed that “Kiddies products from banks are very unknown. I am only aware of First Bank, GTBank, Skye Bank and Access Bank.
“Others you have mentioned are unknown to me and I know other parents would react the same way.”
Banks capitalise on insurance shortcomings
A financial expert, Jackson Umanah, said the genesis of children-focused products from banks is not far fetched. “Insurance has not been living to its word, that is why banks have introduced products to ensure parents and guardians key into them to ensure their children’s future in education.”
Securing claims from insurance companies is of the most difficult things to achieve and banks decided to plug this gap because it is easier to access funds from savings than insurance premium.
Differentiation
Many of the products are ‘same of the same’. There is no clear difference between product A and product B. Most banks adopt the raffle strategy and parents are confused.
First Bank Head of Consumer Banking Products, Adebimpe Ihekuna, explained that “the FirstBank KidsFirst and MeFirst Accounts are uniquely designed to specifically meet the needs of the children.
“The minor accounts address two age brackets; KidsFirst is for 0 to 12 year olds while MeFirst is for 13 to 17 year olds.”
“The accounts are opened and operated with N1,000. Customers who open with a minimum N10,000 are entitled to a trendy gift item. Customers also stand a chance to be one of the lucky winners of a scholarship raffle draw just for having any of these accounts.
“We understand some of the differences in needs of these two categories of young customers (KidsFirst (0-12 years) and MeFirst (13-17 years)) and have decided to pay attention to detail in meeting some of these needs.
“MeFirst account comes with a variety of five exciting and colourful prepaid card options for teenagers to choose from, to enable them learn money management from an early age.
“Their parents/guardians can load their monthly/quarterly allowances on the card, while they still save in MeFirst account.”
Access Bank Head of Products and Segments, Adeola Kusemiju said the introduction of Access Early Savers Account “is yet another demonstration of our commitment to the relationship we share with our customers.
“The new product is a strategic response to the quest of our parent-customers to have a product by the bank that allows them to save for the future of their children as well as secure their future by inculcating in them a savings culture.”
Impact on bottom line
Investigation showed that most banks introduce this product to add their voice to the charter rather than considering the bottom line. But some are making it a business proposition.
Ihekuna said through the Youth Engagement Programme, Kids First and Me First have enabled First Bank to “achieve real mileage in brand enhancement and customer loyalty.”
Bandwagon effect
She rejected suggestion that First Bank is copying others. “The products were developed as part of our 360-degree view of customers’ needs; to help our customers set aside funds for the financial future of their children, while also helping to teach their children financial literacy right from cradle.”
For Access Bank, introduction of Early Savers Account implied that the product is in a different class as it has captured the hearts and minds of young savers.
The appeal of its association with Dora the Explorer resonates with children and pleases them.
Benefits
A total 60 children have reportedly won N1 million each since First Bank introduced the annual KidsFirst and MeFirst raffle draws in 2010.
Ihekuna said the funds are used strictly to pay tuition fees, to help ensure children have a strong educational background, a diving board to other future accomplishments.
Kusemiju added: “That the future belongs to children is a universally acknowledged truth, but the level of preparation and empowerment provided them is integral to how that future is shaped.
“Access Bank’s Early Savers Account seeks to embark on a brilliant journey into the future with Nigerian children by creating opportunities and platforms for them to excel through education, entrepreneurship, and financial literacy.”
Word for parents
Financial experts have urged parents and guardians to inculcate the habit of financial literacy in children and wards.
Ihekuna said parents “can’t go wrong when they open their children’s accounts in the biggest bank brand in Nigeria, with a good track record, which is a haven for children’s funds for future endeavours.”