4.3.2 The youth savings product should be simple, should promote youth ownership and should always be tested with the youth target market
Because youth are first-time users of financial services, the savings product should be very simple, and details should be communicated clearly. The product should be largely controlled by the young person, meaning co-signer requirements, when applicable, should be minimized as much as possible within the constraints of the law.
WWB emphasizes that before launching a youth savings program, the financial institution should always carry out in-depth market research to understand the youth market in its country and to understand any legal or regulatory constraints that may impact the program. Also, it is very important to subsequently test the product, marketing, and financial education prototypes that are developed. Testing the prototypes ensures they are appropriate and gives the financial institution the opportunity to make any necessary adaptations based on youth preferences in that market, as well as internal needs, before program launch. After PEACE MFI S.CO underwent the initial market research and testing, staff found that youth preferred a low opening balance, no fees, free gender-differentiated passbooks with goal oriented covers, and free lock-boxes. In Kenya, with the prevalence of ATMs, youth wanted gender-differentiated ATM cards and piggy banks. They also found that youth wanted to control their accounts; however, the law requires parental/guardian restrictions on withdrawals.