SYDNEY (Reuters) -Snap said on Monday it will offer Australians the chance to verify their age with software owned by the country's banks as the internet platform complies with a teenage social media ban which takes effect next month.

Australia approved last year a world-first social media ban for children aged under 16, in one of the toughest regulations targeting Big Tech.

U.S.-based Snap, operator of the Snapchat service, said it will start reaching out this week to users, giving them the option to prove they are 16 or above by downloading the application ConnectID which links to their bank accounts.

Snap said it would also give Australian users the chance to confirm their age using software owned by Singapore-headquartered age-assurance provider k-ID that estimates a person's age based on a selfie or by uploading government-issued identification.

But the bank account option, which Reuters previously reported was being tested, represents the first involvement of a person's financial footprint in the rollout of the landmark social media ban. Snapchat claims about 440,000 Australian users aged 13-15, making it the most affected platform by the restriction.

In a post on its website, Snap said the Australian government had dismissed its claim to be a messaging platform, rather than social media, but "while we strongly disagree with this assessment, we will comply as we do with all local laws in countries in which we operate".

ConnectID, which is owned and used by most major Australian banks, said it would send the tech platform a "yes/no" signal about whether the person was over 16 based on their account details, without making them upload sensitive information.

"The goal here is to protect young people online without creating new privacy risks," said ConnectID managing director Andrew Black in a statement.

Social media platforms had argued against the Australian ban, which threatens them with a fine of up to A$49.5 million ($31.95 million) for noncompliance, but as the December 10 deadline approaches most have said they will comply.

Last week, Meta, owner of Instagram, Facebook and Threads, which are covered by the ban, said it will start deactivating underage accounts before the deadline.

($1 = 1.5494 Australian dollars)

(Reporting by Byron Kaye; Editing by Muralikumar Anantharaman)