Bank Windhoek launched a bank specifically aimed at children between the ages of 8 and 18 in Windhoek, today.
“Banking should be introduced to children in a fun way,” said Riaan van Rooyen, Head Corporate Communication and Social Investment at Bank Windhoek.
“With this new initiative, Bank Windhoek wishes to teach children from a very young age to manage their own money and to work with their pocket money and other money they earn in a responsible manner.”
The Solo Bank that will be officially launched to the public on 18 June 2016 at the Bank Windhoek branch in The Grove Mall of Namibia, will in its initial phase be open every third Saturday of the month. The main focus of the Solo Bank will be to teach financial literacy to young Namibians.
“Bank Windhoek is a stern supporter of the Financial Literacy Initiative (FLI) in the Ministry of Finance. The FLI, and AIESEC will, as part of the launch of the Solo Bank, assist Bank Windhoek to teach financial literacy to young Namibians. Teams from AIESEC, will visit schools in Windhoek to teach children about how to manage their money and how to be money wise,” Van Rooyen said.
One of the products offered by the Solo Bank will be a loan product to young Namibians holding a Solo Account at Bank Windhoek. With the help and support of their parents, children will be able apply for a loan of not more than N$5 000.
“As children under the age of 18 cannot by law apply for a loan, the loan will, in essence, be awarded on the credit ratings and record of the parents or guardian. The child and his/her parents or guardians will then sign a contract with each other and Bank Windhoek to indicate how the child intends to repay the loan,” said Van Rooyen. The loan will be awarded at the normal lending rate applicable to personal loans and children, who wish to make use of this special package, will have to submit a business plan to indicate how they will generate the money to repay the loan.
“By doing this, we would like to encourage parents to pay their children a set amount of pocket money that they must manage during the month. We would also like to teach children that nothing in life comes for free and that they need to generate their own money to be able to afford more luxurious items. The child must therefore indicate to Bank Windhoek and his parents what chores he will perform to earn the money needed to repay the loan.” Money lent will not be paid into the Solo Account, but will be paid directly to the service provider to ensure that the money is used for the purpose it was applied for.