In a UK first, the initiative will bring together major banks to help young people build confidence in managing money, understand how financial institutions work, and access a direct route to opening their own bank account.

The pilot is being launched at Larkhall Academy in South Lanarkshire and Campbeltown Grammar School in Argyll and Bute, with the Royal Bank of Scotland acting as the first partner bank. Bank of Scotland is expected to take part as other schools join the pilot, with other banks being invited to participate in future phases.

The project will initially target a mix of urban and rural communities, before being rolled out to more schools later in the year. Pupils taking part will receive practical, hands-on financial education over a multi-week programme, covering how money works in the real world and helping to demystify the process of engaging with banks and other financial institutions.

The schools banking pilot is a key part of Financial Inclusion for Scotland’s inaugural strategy - Scotland’s first collaborative financial inclusion strategy - aimed at enhancing the financial wellbeing of Scotland’s most vulnerable populations and enabling access to mainstream financial services in the absence of traditional credit scores.

The initiative comes amid ongoing concern about financial exclusion and low levels of financial confidence among young people. According to the Financial Conduct Authority’s Financial Lives Survey, in May 2024 around 2 per cent of adults in Scotland were unbanked - equivalent to roughly 100,000 people. The cost of not having access to a bank account is estimated at £598 per year through higher bill payments and fees.

Recent research from Young Scot also found that only 3 per cent of young people would go to a bank first for advice, while 49 per cent feel uncomfortable engaging with banks. More than half of 7–17-year-olds are not receiving a meaningful financial education at school.

Following the first phase of the pilot, feedback will be gathered from pupils, parents and teachers to inform a wider rollout in August, aligned with the start of the new academic year.

Sandy Begbie CBE FRSE, chief executive of Scottish Financial Enterprise, said: “Access to a bank account and the confidence to manage money are the basic building blocks of opportunity. Yet too many young people still leave school without the practical financial knowledge they need, and too many families continue to face the costs and barriers that come with financial exclusion.

“This new pilot is about changing that. By bringing schools, banks and financial inclusion partners together, we can give young people early, supported contact with financial services in a way that builds trust, confidence and real-life understanding.

“As outlined in our sector growth strategy, Scotland’s financial services sector has a responsibility not only to support economic growth, but to make sure that growth is inclusive. This programme – a UK first - has the potential to become a practical blueprint for ensuring no young person in Scotland is left behind as our economy becomes increasingly digital and cashless.”

Judith Cruickshank, Scotland Board chair, Royal Bank of Scotland, added: “Helping young people to make the right choices about their money is essential for building financial resilience across our society and creating solid foundations for growth.

“That is why we are delighted to be the first bank to partner with SFE in supporting the delivery of this scheme, which will work towards every young person in Scotland leaving school with a bank account in their name.

“These pilots build on the work we already do to help young people to develop their financial confidence, including through our Royal Bank Thrive programme, which provides learning resources on financial confidence and future skills used in around 80% of Scotland’s schools.”

Nikhil Rathi, CEO of the Financial Conduct Authority, commented: “Our recent Financial Lives Survey highlights that a significant number of people in Scotland still face barriers to accessing essential financial services.

“I very much welcome SFE’s leadership and commitment to address this and its focus on equipping young people with the knowledge and support they need to manage their financial lives effectively.”

Sharon MacPherson, associate, Financial Inclusion for Scotland, said: “The schools banking pilot is exactly the kind of practical, system-level intervention that our Financial Inclusion for Scotland strategy was designed to unlock. Financial exclusion doesn’t begin in adulthood. For many young people, a lack of early exposure to banking and money management sets the pattern for years to come.

“By embedding financial education and a direct route to account access within schools, this pilot addresses that gap at source. The decision to launch across both urban and rural communities from the outset will also ensure that the benefits reach young people regardless of where they live. This is what joined-up, partnership-driven action on financial inclusion looks like in practice.”

Scotland manager for the Money and Pensions Service Allison Barnes, added: “When young people feel confident about money it can make a real difference to their lives, both now and in the future.

“This pilot will help give them the knowledge and practical skills they need to make informed decisions, helping them develop healthier money habits for later life.”