The 15cm elephant connects with the ASB smartphone app through an encrypted Bluetooth link.

ASB's Kashin piggy bank has been given a digital makeover, with children born into an increasingly cashless society.

The elephant-shaped moneybox, which first appeared in 1964, will no longer rattle with carefully hoarded loose change.

It will however let loose a trumpet each time its owner uses it, displaying the bank account balance on a screen on its stomach.

The new box, called 'Clever Kash', lets parents swipe virtual notes and coins across from the ASB mobile banking app.

The 15cm elephant connects to the app over an encrypted Bluetooth connection, and does not allow children to make any transactions.

ASB chief executive Barbara Chapman said these days, children were likely to see their parents handing across a card to make payments.

"Parents are telling us they're finding it challenging to teach their children about the value of money as they don't tend to use cash and coins for everyday purchases," she said.

A survey commissioned by the bank found 96 per cent of parents believed that teaching their children money skills was important.

However, nearly two thirds said they were struggling to do so.

"Clever Kash is our solution to this challenge in an ever-evolving digital era," Chapman said.

Research suggests children begin developing their saving and spending behaviours as early as seven or eight.

Earlier this month, a Westpac-Stuff.co.nz survey revealed New Zealanders overwhelmingly want money skills to be taught as a compulsory subject in schools.

READ MORE: Clarion call for compulsory financial literacy in schools

ASB launched the new moneybox at its North Wharf Auckland headquarters on Wednesday, where children from Orakei School gave the new technology a field test.

The bank said an early release Clever Kash would be available soon as part of the product testing phase.

Customers could register their interest through the ASB smartphone app, or find updates online.