The latest insights from the YouthSave Consortium shed new light on this question and aim to highlight the importance of enabling youth to take ownership of their futures. The YouthSave Consortium – an initiative led by Save the Children in partnership with the Center for Social Development (CSD), New America Foundation, and CGAP, along with several research and financial institutions partners in the field – is working to test the viability and impacts of savings products on low-income youth in Colombia, Ghana, Kenya, and Nepal.
UN Capital Development Fund (UNCDF)
Given the increasing youth population in developing countries, the high levels of youth unemployment and limited economic opportunities for youth, governments are increasingly looking for proactive approaches to help youth realize their full economic potential. Increased access to financial services and increased financial capability to use those services effectively to invest in their education, enterprises, and futures may provide that beacon. Yet youth face many barriers in accessing financial services, including restrictions in the legal and regulatory environment, inappropriate and inaccessible products and services and low financial capability. The public policy opportunity—and imperative—is evident.
The MasterCard Foundation
Watch Deepali Khanna's presentation during the 2012 Global Youth Economic Opportunities Conference's closing plenary session, "How Can You Partner with Funders." Khanna, Director of Youth Learning at The MasterCard Foundation, focuses on the need to find more ways to scale up projects and demonstrate collective impact. She discusses the importance of youth financial services and emphasizes the need for access to savings, credit, and comprehensive employment models.
Population Council and MicroSave Consulting Limited
Originally written in 2009, this 2012 case study details the product development cycle that four financial institutions undertook in Kenya and Uganda to develop and deliver critical financial services to adolescent girls. New highlights include robust market research results from both countries and key steps taken to replicate the model in Zambia.
Kathmandu, located high in the Himalayas in a bowl-shaped valley in central Nepal, recently provided a dramatic setting for the first of four training sessions on youth financial services provided as part of SEEP’s Reaching Scale in Youth Financial Services Practitioner Learning Program (PLP), which started 2.5 years ago.
MIF and PROBIDE
Financing Youth Entrepreneurship through Loan Guarantees was presented at the 2012 Global Youth Economic Opportunities Conference under the Financial Services and Capabilities track. Nobu Otsuka and Daniel Canseco summarize PROBIDE's loan guarantee fund. Once young entrepreneurs are trained and ready to implement their business plans, they face a major challenge: access to finance. They need small loans (not micro) and long-term finance, but a lack of collateral and credit history causes a bottleneck.
The MIF/IDB share an in depth analysis of the financials of the PROBIDE loan guarantee performance and how they compare to other types of financing mechanisms. Loan Guarantees: An Effective Instrument for Youth Start-ups? was presented at the 2012 Global Youth Economic Opportunities Conference under the Financial Services and Capabilities track.
PROBIDE and MIF
“Creer para Crear” An opportunity for the youth of Peru was presented by Daniel Canseco Terry at the 2012 Global Youth Economic Opportunities Conference under the Financial Services and Capabilities track. Despite advancements in youth financial services, the lack of collateral remains a key constraint for youth to access credit. Through a loan guarantee fund, PROBIDE, a Peruvian NGO, has taken on the challenge of providing long-term financing for youth start-ups.
Fundacion Paraguaya and Making Cents International
Building a Future Together: Targeting Young Clients at Fundacion Paraguaya was presented under the Financial Services and Capabilities track at the 2012 Global Youth Economic Opportunities Conference. The possibilities for a long-term relationship with a huge new market of under-banked clients is perhaps one of the most compelling reasons to enter the youth market. Relatively few MFIs target youth or provide them with microloans. Usually, youth clients are considered riskier because they are less experienced in business.
Making Cents International
What are the Goal Posts? In Search of a Business Case for Youth Financial Services was presented under the Financial Services and Capabilities track at the 2012 Global Youth Economic Opportunities Conference. As the youth financial services industry continues to grow, key stakeholder groups are increasingly examining issues of sustainability and whether a business case exists for offering products to young people.