NEDBANK has launched an online tool that aims to create brand loyalty from an early age while teaching children to budget.

Nedbank's MyMoneyMap is the first tool in the cut-throat industry that will encourage parents to teach their children to save and budget.

Nedbank introduces the product at a time when it is ranked the fourth largest bank in SA and is looking for ways to grow its customer base.

The bank's head of digital innovations and payments, Ilze Wagener, told Sowetan yesterday that the product would freely be available to everyone who is keen to use it.

The online tool allows parents and children to virtually manage their pocket money.

"MyMoneyMap is not a bank account but a financial fitness tool that allows parents to interact with their children on how to save based on four pillars.

"The pillars are 4spending, 4saving, 4growing and 4good, which are key features of the youth offering, Nedbank 4me," she said.

The bank will ultimately monetise the product by linking it to its My Future, My Bank product, which enables kids up to 18 years to transact and save with the benefit of earning a preferential interest.

"If I give my child R250 a month, my child and I could decide that 25% goes to spending bucket, 25% to savings bucket, 25% to charity and 25% to investment," she said.

Morongwa Motalaota, a mother of two children, said she appreciated that a bank created a product that would teach children to budget.

"If a child misuses their pocket money and they are broke in the middle of the month, he or she will approach me to help them buy something needed for school," she said.

"If I am running on a tight budget, this would result in me having to go to a bank to ask for a loan."

Cadiz Asset Management equity analyst Adrian Cloete said the tool would compete with the customer-loyalty offerings from Absa, Standard Bank and FNB.

Cloete said the MyMoneyMap was part of Nedbank's strategy, which started in 2009, of broadening its customer base while also creating brand loyalty.