Chapter 4: Youth-Inclusive Financial Services (YFS) and Capabilities

This chapter provides guidance to youth-inclusive financial services (YFS) practitioners addressing opportunities and challenges at the national, institutional, and product level.  It provides practical tips and examples of innovative policies or programs that promote youth financial education and access to youth-friendly financial services. The chapter begins with ideas to engage policymakers in discussions on how to most effectively increase youth financial capability at the national level. At the institutional level, the chapter also sheds light on the much-debated topic of the business case for YFS and how it has evolved from simply looking at financial services for youth to encompassing the business case for increasing youth financial capability. On the product side, the chapter outlines new evidence-based guidelines for developing youth savings products and sheds light on new and innovative funding mechanisms for youth-owned start-up small and medium enterprises (SMEs). This section also analyzes how behavioral economics can aid in designing effective strategies for promoting savings habits among youth. Finally, the chapter looks at how financial service providers (FSPs) are using new technologies to increase youth access to financial services and to improve financial literacy of prospective youth clients.

The key lessons learned include: