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A Commonwealth Bank spokesperson said the bank was surprised and disappointed with the decision which will affect the bank-funded unbranded StartSmart financial literacy program.
"This will have an impact on thousands of children,families,school communities and volunteers,right across the state.
"We have been engaging constructively with the ASIC review,refined our program to incorporate or address the initial findings,with submissions from communities,schools and individuals right across the country showing significant support for School Banking."
Consumer group Choice has called upon other state and territory governments to follow the Victorian government’s move to ban the programs.
"Programs like the Commonwealth Bank’s Dollarmites are little more than slick marketing programs aimed at primary school aged children,"Choice chief executive Alan Kirkland said.
"Choice has never been able to find any evidence that programs like the Dollarmites have any impact on long-term savings habits. The only impact they have is to give the Commonwealth Bank a steady stream of young customers,many of whom stick with the Commonwealth later in life.
"We welcome the Victorian government’s commitment to genuine financial literacy programs."
Asked if it would introduce a similar ban on school bank accounts,NSW Premier Gladys Berejiklian and Education Minister Sarah Mitchell declined to comment on Sunday. A spokesman for Ms Mitchell and a spokeswoman for the Premier both said:"We will leave this thanks".
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