The country's largest consumer group is calling for a ban on school banking schemes such as the Commonwealth Bank's iconic Dollarmites​ accounts, saying these programs allow banks to pay "kickbacks" to schools to "flog their products".

As part of a wider attack on how banks distribute products in the community, Choice said the long-running Dollarmites program relies on "conflicted remuneration" to sign up young customers, as CBA pays schools when new accounts are opened, or cash is deposited.

Schools received $2.3 million from the Commonwealth Bank in 2016, under its school banking program, including the Dollarmites Club. Credit:Commonwealth Bank

Responding to the criticism, CBA on Wednesday promised to revamp the structure of the commissions it pays to schools, which totalled $2.3 million last year.

In a new submission, Choice claimed school banking programs were used to increase sales and market brands to children, and CBA's dominance gave it an "effective monopoly" in signing very young customers.