Banks Called On To Remove Barriers To Banking For Teens

NZ start-up MyMahi is calling on banks to remove unnecessary barriers to bank accounts for young people and recognise alternative forms of ID after a survey of secondary school students found a third don’t have one.

A recent report by Westpac into unbanked Kiwis claimed not having appropriate identity documents was a major hurdle in obtaining a bank account, citing restrictions from the Anti-Money Laundering (AML) laws. However, trusted education advocacy platform MyMahi has developed a tamper-proof, secure digital student ID that could help every secondary school student in New Zealand open a bank account.

MyMahi Founder and educator Jeff King says their survey of more than 1000 young people reveals the depth of the unmet need amongst secondary school students in accessing the fundamental right of having a bank account.

“We don’t believe ID and the AML is the barrier to those young people - it’s the banking sector’s onboarding processes. It would benefit everyone if banks were more open about what they require for teenagers to open an account. Tens of thousands of young people use our ID, which teachers - who are government employees - verify multiple times daily through face-to-face interactions with students.”

“The Ministry of Education, Inland Revenue, Tertiary Education Commission, and the Department of Internal Affairs all say our ID provides a much-needed solution.”

“It meets AML requirements for identity verification, despite it not being a ‘traditional’ form of ID. It’s exciting to work with these government organisations and use technology to really knock down barriers for young people, we invite banks to come to the table and be part of the solution,” he says.

Banks usually require a passport or birth certificate to open a bank account, with young people also needing to make an appointment with their parents in person at the bank. Many of the problems that people face later in life with gaining an account can be solved by having every young person leave school with a bank account.

“Banks are reducing hours and closing branches, and not every young person has access to a passport, their birth certificate, or even the support of parents to make an appointment and visit the bank to open an account. We also work with many students and schools in regional NZ who don’t have any access to any local banks at all, so it’s just one barrier after another,” King says.

“Schools are contacting us to see if we can introduce banking to our platform; and some teachers are having to take students to the bank during school hours to help them open an account - when they should be learning in class. Everyone focuses on financial capability education, but it's an abstract concept if students don’t have an account.

“We now have a solution to resolve the number of unbanked youth; it’s supported across the government sector; we would like to see a sharper focus on the financial well-being of our next generation,” he says.

About MyMahi

MyMahi was created by former deputy principal and internationally experienced educator Jeff King in 2019. An online platform and tool for schools and students across NZ and Australia, it equips users with life skills, builds financial capability, and helps students become tertiary and work ready. It also supports teachers with lesson plans and provides students with a digital tamper-proof ID. In 2022, it had 70,000 student users across Australasia. You can find out more at www.mymahi.com

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