The youth segment represents a promising market full of potential for financial service providers – the youth of today are the customers of tomorrow. While offering youth formal financial services can pay off for financial service providers in the long run, there are unique challenges to banking youth.
Global Money Week is a worldwide celebration to empower the next generation to be confident, responsible and skilled economic citizens. Every year, during the second week of March, young people around the globe talk, play, create, sing, read, discuss and learn about saving, money, changing economic systems and building a financial future for youth. It is about joining together – children, youth, parents, organizations and entire communities - to start action to reshape finance, and give young people the tools to shape their own future.
Consultative Group to Assist the Poor (CGAP), Microlinks, USAID
Aug 7, 2014 (09:00am to 10:30am)
Customer-centricity is about providing solutions based on a deep understanding of customer needs, preferences, and behaviors. This approach takes the idea of financial inclusion one step further and requires more than just good intentions to be effective. It can often involve a complete overhaul in a service providers operations and behaviors. But the journey to customer-focused products and services is vital as it can add value to the lives of the world’s most vulnerable by helping them meet daily needs, achieve personal and business goals, and build resistance against market shocks.
The MasterCard Foundation has been dedicated to learning as an organization since our first partnership in 2008. It is in this spirit that we are proud to share Change that Matters: Learning from our Partnerships. Informed by evaluations, research and the expertise of our partners and staff, this report provides a narrative introduction to our work by summarizing key learning from our first six years as a philanthropic organization.
With almost half the world's population today under the age of 25, youth finance represents a largely untapped business opportunity. Despite this potential, there are surprisingly few examples of providing youth savings in a profitable manner. Few financial service providers, especially in developing countries with large young populations, target youth specifically as a segment. A new CGAP paper examines the business considerations for financial service providers offering savings products to young people.
This paper begins by offering a framework for understanding how different influences or “levers” affect costs and revenues and uses examples to explain how the framework can be applied as a decision-making tool. It then uses three brief case studies (Bank of Kathmandu [BoK] in Nepal, XacBank in Mongolia, and Sparkassen in Germany) to illustrate the many influences that determine a business case. Finally, it offers suggestions for practitioners and policy makers.