Offensive Language Fuels Renewed Scrutiny of Commonwealth Bank's Defunct Dollarmites Program

A recent social media post by Lachlan Phillips has reignited public discussion surrounding the Commonwealth Bank of Australia's (CBA) former "Dollarmites" school banking program, drawing sharp criticism for its use of offensive language. The tweet, posted on July 15, 2025, stated, "Growing up, we had Dollarmites. It was a bank basically locking kids into their first bank account. Most of my friends use this bank today. I assume the plan is the same, but for socially retarded children." The final phrase has been widely condemned as ableist and deeply inappropriate.

The Dollarmites program, which ran for 90 years, was long presented by the Commonwealth Bank as a financial literacy initiative aimed at teaching children the value of saving. However, it faced significant scrutiny from consumer advocacy groups and financial regulators. Critics, including consumer group CHOICE, argued that the program primarily served as a customer acquisition strategy for CBA, rather than genuinely improving children's financial literacy.

Investigations by the Australian Securities and Investments Commission (ASIC) found no evidence that such school banking programs improved saving behaviors. Instead, ASIC concluded that these programs employed "sophisticated marketing techniques to target vulnerable consumers." The program was estimated to be worth up to $10 billion to the bank due to the long-term loyalty of customers who started with Dollarmites accounts.

Amid growing criticism and bans from several state governments, including Victoria, Queensland, and the ACT, the Commonwealth Bank announced the national discontinuation of the Dollarmites program from the end of 2021. Past controversies also included revelations during a 2018 royal commission that some CBA staff fraudulently opened accounts for children to meet sales targets, further eroding public trust.

The offensive language used in the recent tweet, particularly the term "socially retarded children," highlights a persistent issue of casual ableism in public discourse. Such terminology, rooted in outdated and derogatory medical classifications, is widely recognized as demeaning and perpetuates harmful stereotypes against individuals with intellectual disabilities. While the tweet aimed to criticize the perceived predatory nature of the banking program, its choice of words has overshadowed this intent, drawing focus to the insensitivity of the commentary.