Global Financial Inclusion:
The Next Generation
Child & Youth Finance International Strategy 2020 Global Financial Inclusion: The Next Generation
ÂŠ Child and Youth Finance International (CYFI) June 2016 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of Child and Youth Finance International.
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Table of Contents Executive Summary 1. 1.1 1.2 1.3 1.4 1.5 1.6 1.7
2. 2.1 2.2 2.3 2.4 2.4.1 2.4.2 2.4.3
3. 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.3 3.4
Mission and Strategy
Mission CYFI’s Achievements Evolution of CYFI’s 2020 Strategy Network Consultation Process Core Drivers Segmented Approach CYFI’s 2020 Level of Ambition
10 10 12 12 13 13 14
Approach and Activities
Theory of Change Systems Change Our Unique Approach: Collaborative Systems Change CYFI Activities Advocate Activities Network Connector & Expert Hub Activities Network Advisor Activities
18 19 19 20 20 20 21
Governance Structure Partner’s Assembly Supervisory Board Management Board CYFI Secretariat Team Impact Sustainable Finances Closing Remarks
24 24 24 25 25 25 25 26
Appendix 1: KPIs
Appendix 2: Detailed Results of Network Consultation Process
Network Survey – detailed results In-depth Interviews – detailed results Regional Webinars – detailed results
30 32 33
Definitions used in this document
Economic Citizenship Education (ECE):
Full Economic Citizenship (FEC):
Financial Inclusion (FI):
An education curriculum combining the three modules of financial education, social education, and livelihoods education for children and youth. Financial education includes instruction and/or materials designed to increase financial knowledge and skills. Social education is the provision of knowledge and skills that improve an individualsâ€™ understanding and awareness of their rights and the rights of others. It also involves fostering of life skills such as problem solving, critical thinking, and interpersonal skills. Livelihoods education builds oneâ€™s ability to secure a sustainable livelihood through skills assessment and a balance between developing entrepreneurial and employability skills.
Economic and civic engagement to promote a reduction in poverty, sustainable livelihoods, sustainable economic and financial well-being, and rights for self and others. It has the potential to improve economic and social well-being, increase economic and social engagement, enhance understanding of and respect for basic rights, reduce income and asset poverty, and lead to sustainable livelihoods for children and youth.
Access to appropriate, quality, and affordable financial products and services that are affordable, usable, secure and reliable.
Executive Summary Over the past five years, Child & Youth Financial International (CYFI) has created a lot of momentum on the topic of Full Economic Citizenship (FEC) for children and youth. It has built a strong reputation for being a global authority on the topic and has managed to put Full Economic Citizenship on the agendas of governments, multilateral agencies and other stakeholders. It is now time to build upon this solid foundation and plan the road towards Full Economic Citizenship for children and youth. In collaboration with its strategic partners Deloitte and McKinsey & co., CYFI has gone through an indepth network consultation process to define the CYFI 2020 Strategy based on input captured via: • A Network Survey; • In-depth interviews; • Regional Webinars. The CYFI 2020 strategy is based on the following core drivers: • Approach: CYFI will continue the Collaborative Systems Change approach. This means that CYFI aims to achieve large scale, structural change by driving innovation, sharing knowledge, rallying all relevant stakeholders around this issue, and propelling joint actions.
approach to Financial Inclusion and Economic Citizenship Education. • Stakeholders: CYFI will primarily work with governments and government agencies while ensuring that other stakeholders are actively involved in the process. • Role: CYFI will take a segmented approach in working with countries. This means that CYFI will play an adaptable role and offer different services to countries, depending on the countries’ level of advancement towards FEC.The roles are: • Advocate for 150 countries in the CYFI network, • Network Connector & Expert Hub for 3040 “‘Mid Improvement Opportunity’” and 15-20 “High Improvement Opportunity” FEC countries, • Network Advisor for 15-20 “High Improvement Opportunity” FEC countries. A segmented approach in working with countries, based on the country’s level of advancement in FEC, will be implemented to successfully achieve this 2020 strategy.
• Focus: CYFI will focus increasingly on Financial Inclusion while continuously emphasizing the importance of an integrated
Mission and Strategy
1. Mission and Strategy 1.1 Mission
1.2 CYFI’s Achievements
Child & Youth Finance International (CYFI) was launched in 2011 with the ambitious mission: To be the world’s leading network which teaches children and youth to learn, save and earn thereby promoting Full Economic Citizenship.
Some of CYFI’s achievements in the first phase are:
It was immediately understood that a wider scale, longer term systems change approach was needed to meet this challenge. With that in mind, CYFI pioneered a unique way of thinking and a new model of collaborative systems change. To implement the model, CYFI approached those working in the fields of financial education and inclusion and together built a network of over 1,000 NGOs, multilaterals, academics, financial institutions and government agencies, with which the organization continues to work. In less than 5 years, with a small team and a lean budget, CYFI has managed to work with organizations in 132 countries, collaborate with international organizations including UNCDF, the OECD and the G20, advocate for the importance of economic empowerment of young people around the world, and provide assistance in the introduction of numerous financial products and Economic Citizenship Education (ECE) programs for children and youth.
Advocate: • Global Money Week has reached over 16.5 million young people in 132 countries (Figures 1 and 2), 100 million people indirectly, and featured involvement of 138 national authorities. Network Connector and Expert Hub: • CYFI’s International Summits were held in 2012 (Amsterdam), 2013 (Istanbul) and 2013 (New York) and attended by more than 1200 participants from 100 countries. • Numerous regional meetings (held in 2012 – 2015) brought together over 2,200 stakeholders. • Stepped up as a thought leader by coauthoring publications and reports with such organizations as MasterCard, UNICEF, and UN-Habitat. Network Advisor: • Launched innovative programs including SchoolBank and the Ye! Community. • Worked with numerous policymakers on creating policies related to financial inclusion and ECE for children and youth.
Growth in country involvement during GLOBAL MONEY WEEK
Figure 1: Number of countries involved during Global Money Week 10
Growth in children and youth involvement during GLOBAL MONEY WEEK
The efforts and achievements of CYFI are being recognized and the organization received backing from prominent supporters. Highlights from the past five years include: • Listed the top 100 in The Global Journal’s Top 500 NGOs list for three years consecutively (in 2016 CYFI held 48th position).
• Letters of Support from UN Secretary General Ban-Ki Moon during CYFI Annual Summits.
• Opened the NASDAQ stock exchange for two consecutive years to mark Global Money Week – it is now the tradition that children and youth open stock exchanges around the world during this week.
• Affiliated Member to the GPFI, the inclusive platform for all G20 countries.
• Associate Member of the OECD’s International Network for Financial Education (INFE).
• Held a High-Level Stakeholders and Youth Meeting at the United Nations Headquarters in May 2014.
Figure 2: Number of children and youth involved in Global Money Week
• Received support from prominent persons, notably Her Majesty Queen Maxima of the Netherlands, Her Majesty Queen Mathilde of Belgium, Herman van Rompuy - Former President of the European Council, Mario Draghi - President of the European Central Bank, Amina J. Mohammed – The UN Secretary-General’s Special Adviser on Post-2015 Development Planning and, Ahmed Alhendawi - The UN’s Ambassador for Youth.
1.3 Evolution of CYFI’s 2020 Strategy
1.4 Network Consultation Process
Five years after the establishment of CYFI, the time has come to reexamine our strategy for the next five years and prioritize our actions. We have based this revision on certain trends that we have analysed, and the feedback from the partner network.
Being a network organization, an in-depth network consulting process was at the core of defining the CYFI 2020 Strategy. We thus formulated a structural three-tier network consultation process:
One of the most encouraging trends we have seen is that the landscape has shifted from being comprised of isolated players in the field of ECE, to more coordinated and government-led initiatives. This is a positive development. However, financial inclusion and access for the young has remained a challenge as banks do not yet see the business case. The advent of Fintech has meant that technology in the banking sector has advanced at a high pace, and with it the opportunity to provide low-cost financial products to the marginalized. In light of this, CYFI is partnering more closely with Fintechs to explore innovative solution to market access. Another important demand from the youth in the CYFI network has been for support in entrepreneurship issues. This links strongly to CYFI’s third pillar; livelihoods. Thus, CYFI will focus more in this issue in the coming five years.
Network Survey (320 respondents): A forward-looking survey (i.e. what do you see as CYFI’s role going forward) was sent out to the network in April 2016. In-depth interviews (~40 interviews): Consultants from McKinsey and Deloitte had in-depth calls with partners and stakeholders in order to ensure objective responses. A mix of different types of stakeholders, in terms of sector, geography, and level of support to CYFI thus far (i.e. a combination of weak and strong supporters), were interviewed. Regional Webinars (~40 participants): 6 webinars (one per region) were held at the end of May/early June 2016. The goal of these was mainly to test some of the hypotheses that came out of the surveys and calls.
In total, roughly 400 stakeholders were consulted in this process. A summary of the strategy consultation process and the main takeaways are shown in Figure 3.
Tools 1 Survey
Main takeaways •
Forward looking survey (i.e. what do you see as CYFI’s role going forward) sent out to the network 320 respondents
Consultants from McKinsey and Deloitte have had indepth calls with partners and stakeholders A combination of weak and strong supporters has been interviewed ~40 interviews took place
6 webinars (one per region) were held at the end of May/ early June Goal: To test some of the hypotheses that came out of the surveys and calls ~40 people participated in the webinars
• • •
Lack of resources (including money and time) is the main challenge for stakeholders in achieving 100% FEC (which might reflect that FEC is not a top priority) Stakeholders see a role for CYFI mainly as Network connector, expert hub, and advocate Documenting/publishing, network activities, and GMW are considered the most useful CYFI activities going forward
Concentrate on financial inclusion and relationships with public authorities Become the global leader of advocacy activities Be distinct by becoming a reference provider of strategic and methodologic support. Build upon existing indexes to have an FEC adapted composite ranking
Feedback heard across regions: • Network connector role important (e.g. regional meetings) • Publications and best practices (not necessarily academic papers) would be very valuable • A tool to assess our performance on FEC would be very useful – however, we should see if we can partner with other initiatives (e.g. Finscope surveys, OECD, AFI, WB)
Figure 3: Summary of the network consultation process and main takeaways Detailed outcomes of this three-tier network consultation process are included in Appendix 2.
1.5 Core Drivers The outcomes of the network consultation process formed the core for defining the CYFI 2020 Strategy, a strategy based on the following drivers: • Approach: CYFI will continue with the Collaborative System Change approach. This means that CYFI aims to achieve large scale, structural change by driving innovation, sharing knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions. Unlike advocacy organizations, which only raise awareness, we go further and offer our network partners concrete tools and road maps to implement changes that will gradually alter the ecosystem of Full Economic Citizenship for children and youth in key countries. In addition, although not a direct programming organization, CYFI will support a limited amount of SchoolBank pilots, in order to test innovations that can later be scaled by organizations in the network. • Focus: CYFI will focus increasingly on Financial Inclusion while continuously emphasizing the importance of the FI/ECE integrated approach. • Stakeholders: CYFI will primarily work with governments while ensuring that other stakeholders, especially financial service providers and civil society organizations, are actively involved in the process.
• Role: CYFI will take a segmented approach in working with countries. This means that CYFI will play an adaptable role and offer different services to countries, depending on the countries’ level of advancement towards FEC. The roles are: • Advocate for 150 countries in the CYFI network, • Network Connector & Expert Hub for 30-40 “‘Mid Improvement Opportunity’” and 15-20 “High Improvement Opportunity” FEC countries, • Network Advisor for 15-20 “High Improvement Opportunity” FEC countries.
1.6 Segmented Approach Through CYFI’s experience in its first five years, and the recent Network Consultation, it has become evident that different countries need different types of support in order to achieve FEC. While some CYFI activities are relevant for all countries (e.g. Global Money Week), other activities are relevant to countries which are in the beginning stages of integrating nationwide FEC. Yet another set of activities are relevant to those countries which have still to be convinced to take the initial steps on this journey towards FEC. This means that, in order to successfully achieve the 2020 strategic goals, CYFI must take a segmented
approach in working with countries, based on the country’s level of advancement in FEC. This is outlined in Figure 4. CYFI can play three main roles which are in line with its systems change approach. These roles are referred to as Advocate: (Role A), Network Connector & Expert Hub: (Role B) and Network Advisor (Role C). These are further detailed in the following section. Determining whether CYFI plays a role A, B or C in an individual country is determined by: 1. CYFI understanding of the country status with regard to FEC; 2. The willingness of the stakeholders in the country to increase FEC; 3. CYFI’s traction and network within the country; and 4. The availability of data to prove impact. Role A: Advocate: For all countries in the network (150 by 2020), CYFI will play the role of Advocate. The goals are to: • Create awareness: Bring attention to the topic at the global and national level and serve as a low threshold activity for organizations to get involved in the CYFI movement and (eventually) develop programs and/or policies; • Encourage: Stimulate organizations to advance their efforts in FI, ECE and
Entrepreneurship by recognizing and endorsing those parties that achieve impact and demonstrate innovation; • Highlight gaps and opportunities: Bring certain gaps and opportunities to the attention of policy makers so they can take action to increase FEC. These can be opportunities in terms of launching new policies, activities, programs, or products or improving existing ones. Role B: Network Connector & Expert Hub: For a selection of ‘Mid Improvement Opportunity’ FEC countries (30-40) and ‘High Improvement Opportunity’ FEC countries (15-20) CYFI will go beyond the role of advocate and support these countries with networks and expertise. The goals are to: • Connect: To promote cross-organizational learning to encourage more rapid take-up of FI, ECE and/or entrepreneurship at the national or organizational level, through replication or innovation models; • Generate and Share knowledge: To ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations. Some of this knowledge will be relevant and open to countries beyond the target countries selected here;
• F acilitate Technical Assistance (TA) support: In our role as Network Connector and Expert Hub, we will also link organization in need of TA support, to the right TA providers in our network.
Countries and Rationale CYFI Role: A For 150 countries
CYFI Role: A + B For 30-40 countries
Most countries can benefit from more transparency on their performance We need to track what happens in high ranking countries, to collect best practices To highlight innovations from all countries
30-40 mid improvement opportunity FEC countries •
These countries work form a strong base and don’t need hands-on support, but would benefit from documentation of best practices and network opportunities
CYFI Role: A + B + C For 15-20 countries 15-20 high improvement opportunity FEC countries •
A: Advocate B: Network Connector & Expert Hub C: Network Advisor
Figure 4: Different roles CYFI for different segments of countries 14
Role C: Network Advisor: For a selection of ‘High Improvement Opportunity’ FEC countries, CYFI will provide more hands-on support. The goals are to: • Pilot Innovations: To provide to the network examples of how different approaches can be implemented in differing circumstances to encourage those that do not know how or where to begin. • Share expertise: To increase the number, quality, and scale of organizations engaged in offering policies or programs in ECE, FI, and/or entrepreneurship. • Provide or facilitate TA support: To ensure that stakeholders are receiving the exact type of assistance desired and suitable to their particular context in order to achieve FEC, either directly by the CYFI secretariat, or through the TA providers in our network.
All 150 countries in the network
• These countries require more in-depth support to kick start their work on FEC
1.7 CYFI’s 2020 Level of Ambition The general aim of increasing FEC of children and youth across the world is broken up into highlevel targets for each of the roles that CYFI will play, as seen in the chart. For each role / ambition level, more detailed and concrete targets will be formulated per underlying activity.
Level of Ambition
• Global Money Week in 150 countries in 2020 • Global Money Week led by 100 governments in their respective country by 2020 • National Full Economic Citizenship Implementation Tool covering 100 countries by 2020 Systems change in 30-40
B: Network countries, including policies Connector & affected, pilots scaled up, and Expert Hub pilots (that are not SchoolBanks) implemented
C: Network Advisor
• 15-20 High Improvement Opportunity FEC countries will have twice the growth in FI rate compared to benchmark/peers • 15 SchoolBanks or equivalent FI projects launched
Approach and Activities
2. Approach and Activities 2.1 Theory of Change In June 2010, 126 experts from 40 countries gathered for the first Child and Youth Finance meeting in the Netherlands to share their insights and expertise in developing the Movement as well as the organization’s Theory of Change. Over the course of June 2010 – July 2011, they came together in dedicated working groups for each of the key strategic areas of the Movement. The CYFI Research Working Group comprised of leading academics in the fields of financial literacy and children’s rights, combining their expertise to develop CYFI’s Theory of Change in the form of a detailed model of Full Economic Citizenship. The model (Figure 5) poses that financial education, social and livelihoods education, and financial inclusion are the building blocks of empowerment and financial capability that underpin Full Economic Citizenship for children and youth. Financial education includes instruction and/or materials designed to increase financial knowledge and skills. Social education & livelihoods education are the provision of knowledge and skills that change individuals’ understanding and awareness of their rights and the rights of others. It also involves fostering of life skills. Financial inclusion is access to appropriate, quality, and affordable financial services. Empowerment is the sense of confidence and efficacy experienced by children and youth through controlling their own lives,
claiming their rights, and having empathy toward others. Financial capability has individual and structural components. It combines a person’s ability to act with the opportunity to act. To be financially capable, people one must have financial knowledge and skills as well as access to appropriate financial services to enhance social and economic well-being. At the center of the Theory of Change lies the ultimate beneficiary, the individual child or youth. When developing the CYFI Theory of Change, the Research Working Group used the UN Convention on the Rights of the Child as its base. The Convention outlines the child’s right: • To survive; • To develop to the fullest; • To protection from harmful influences, abuse, and exploitation; and • To participate fully in family, cultural and social life. States that are parties to the Convention recognize that poverty and unemployment severely restrict, if not completely deny, children and youth these fundamental rights. In order to reach the goal of Full Economic Citizenship, the group concluded that a concentrated effort of intertwined development interventions is necessary. CYFI’s Full Economic Citizenship Model states that holistic financial, social, and livelihoods education, when implemented in combination with financial
inclusion, can lead to greater capability and empowerment, thus helping children and youth to become thriving economic citizens (Figure 5). In the next phase, we’ll review and, if needed, update this model based on new research and the learnings from the last 5 years.
Social & Livelihoods Education
Figure 5. Child and Youth Finance International (CYFI) Model of Full Economic Citizenship
2.2 Systems Change From the outset, we realized that our large-scale challenge requires large scale thinking, and that the current situation - as well as the barriers on the way to change - is the result of the systems in which we live. Like Russian “Matryoshka” dolls that fit one inside the other, most systems contain other systems and are contained within larger systems: cells within organs, within individuals, within communities, within counties, states, and continents. Changing a system affects both the systems within it and the systems in which it is nested. The challenge for change agents is choosing the right level, or levels, of scale for the changes they seek. The answer is often working at multiple levels: top down, bottom up, outside in, and inside out. Most of the qualities of a living system are aspects of a single fundamental network pattern: nature sustains life by creating and nurturing communities and lasting change requires a critical mass or density of interrelationships within a community. It is difficult, however, to direct a living system. You can only disturb it by introducing information that contradicts old assumptions, by demonstrating that things people believe they cannot do are already being accomplished somewhere, by inviting new people into the conversation, and by rearranging structures so that people relate in ways they’re not used to and presenting issues from different perspectives.
At the same time, one can create conditions that take advantage of the system’s capacity for generating creative solutions: nurture networks of connection and communication, create climates of trust and mutual support, encourage questioning, and reward innovation. It is CYFI’s role as a leader and change agent to recognize emergent opportunities, articulate them, and incorporate them into organization and/or program designs.
2.3 Our Unique Approach: Collaborative Systems Change To meet the considerable challenges facing us, we pioneered a new way of thinking and designed our “Collaborative Systems Change” management approach. Uniquely suitable for tackling large-scale problems, this innovative model recognizes that there is no one big answer to complex problems, but rather a plethora of smaller efforts working in harmony that propel the entire machine forward. To drive the necessary change and combat cycles of poverty, a wider-scale, long-term systems change approach is needed. At the center of this Collaborative Systems Change model, CYFI serves as an agent of change - driving innovation, demonstrating proof of concept, sharing knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions.
Innovation: as organizations are often unwilling to invest time, money and effort into new and untested approaches, it is our role as an agent of change to offer both innovation and proof of concept. Collaboration: for a lean organization such as CYFI – which does not possess the means of the UN, OECD or even large international NGOs – the way to affect global-scale change relies on highly effective collaboration between different types of organizations, in order to create the needed critical mass of efforts. Expert Change Agent: at the center of this model, we activate the collaborative network and affect implementation by driving innovation, exchanging knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions.
The combination of these elements is the key to our exponential growth with very modest resources in such a short period of time. Unlike advocacy organizations aimed to raise awareness, we go further and offer our network partners concrete tools and road maps to implement changes that will gradually alter the ecosystem of youth economic empowerment in every country in which we work.
Our approach relies on three complementary elements:
2.4 CYFI Activities
The underlying activities per role are described as follows:
Concretely, the roles will be translated into activities as follows (Figure 6):
2.4.1 Advocate Activities
The proposed CYFI 2020 strategy follows three different levels of activities for three segments of countries
B Network Connector & Expert Hub C Network Advisor
All 150 countries in our network
30-40 mid FEC countries
15-20 countries that require more in-depth support (low FEC countries) (see below)
15-20 countries that require more in-depth support (low FEC countries) that CYFI already works with and for which data is available in order to track impact
Figure 6: CYFI activities by role 20
Activities • • • •
• • • •
• • •
Global Money Week Global Inclusion Awards Endorsements (curriculum & product) National Economic Citizenship Implementation Tool (internal) (for ~100 selected countries)
Research, Best practice sharing & documentation Summit, (sub)Regional Meetings TA Facilitation (mostly through CNRP for “mid” FEC countries) Ye!
Pilot Programs for proof of concept (e.g. SB or equivalent FI projects) Workshops and trainings (e.g. product development workshops) TA (directly and through CNRP)
• Global Money Week: Annual celebration and learning event celebrated by partners in the 2nd week of March. This event gives young people a chance to take part in fun and educational activities within a framework followed by partners in 132 countries (2016). • Global Inclusion Awards: The annual global awards ceremony recognizes countries, organizations, and youth for outstanding work in the areas of child and youth financial inclusion, ECE, and entrepreneurship. The awards in 2015 were held at the House of Lords in the UK and hosted by Baroness Howarth. It will be held in Q4 of every year. • Endorsements: Assessing and (ideally) endorsing curriculum and banking products which follow criteria from the ECE Learning Framework or the Child and Youth Friendly Banking principles. • National Full Economic Citizenship Implementation Tool (NECIT): The NECIT
is a comprehensive and transparent tool to provide a more complete understanding of the status of FEC in a country. The tool examines the take-up of ECE, FI, and youth entrepreneurship at a country level. It also tracks the progress of countries over the years and the involvement of CYFI activities on such progress. The Tool is (initially) not public and CYFI will report to countries bilaterally on their performance.
2.4.2 Network Connector & Expert Hub Activities • Research, best practice sharing & selective documentation: Creating and/ or sharing documents and information that tracks learnings coming from the field and which responds directly to needs coming from stakeholders in the network (e.g. best practices, landscape documents, etc.). Figure 7 shows a preliminary list of publications that will be put forward. • Meetings: Events held at the global, regional or sub-regional level, which bring together diverse groups of stakeholders in order to share knowledge and best practices and networking opportunities.
Regional and sub-regional when needed, with global summits occurring ideally every two years • Ye! Community: YE! is a global platform for young entrepreneurs aged between 16 and 30 years old. YE! connects young entrepreneurs around the world to share their ideas and experiences, and provides them with tools, resources, links to coaches and links to funding. The role of CYFI here is as a network connector between entrepreneurs and policymakers, entrepreneurs with their peers around the world, entrepreneurs and mentors, and entrepreneurs with organizations that can offer them resources and funding to help them manage and grow their enterprises. • Technical Assistance (facilitation): Either 1) provide direct assistance to stakeholders in their programmatic or policy work (mostly for low FEC countries – CYFI in the Network Advisor role); or 2) to assist in arranging specialized external technical advisors through the CYFI Network Response Program (CNRP) (mostly for MidImprovement Opportunity FEC countries – CYFI in the Network Connector role).
2.4.3 Network Advisor Activities
Q1 Annual / periodical
nnual Report A Case Study (1 per region)
Q2 • •
MW Report G Case Study (1 per region)
ase Study C (1 per region)
Q4 • •
Awards Report Case Study (1 per region)
Meeting reports (as they happen)
2016 • Systems Change and CYFI • Youth Livelihoods Landscape • ECE Landscape • FI Landscape • National Implementation Handbook (updated) • Payments and Youth (working group doc) • Research Landscape • Country Benefits of Economic Citizenship • Economic Citizenship & SDGs • Update of CYFI’s model of ECE • FinTech and (CYFIs position on) FI
...And beyond • SchoolBank publication • Report on Certification • Report on UK FairBanking Certification Pilot • Consumer Protection brief • Many interesting other reports as we hear needs from network!
Generally: Increasing focus on FinTech and tech innovations in the field
• Pilot programs (e.g. SchoolBanks): Testing and monitoring innovative approaches to implementing the various aspects of ECE, financial inclusion, and/or entrepreneurship. Pilots will ideally vary in approach so as to maximize learning opportunities. • Workshops and trainings: Lead or provide organizational support to workshops and trainings that can assist stakeholders in designing/implementing ECE, FI, and/or entrepreneurship policies or programs. • Technical Assistance (facilitation): Either 1) provide direct assistance to stakeholders in their programmatic or policy work (Network Advisor); or 2) to assist in arranging specialized external technical advisors (i.e. CNRP) (when the secretariat cannot provide this assistance directly) (Network Connector).
Figure 7: CYFI Public going forward 21
3.1 Governance Structure
3.1.1 Partner’s Assembly
The governance structure, based on CYFI’s foundation deeds, is outlined in Figure 8. The different roles are outlined in the following sections.
The Partner Assembly is CYFI’s network of partners. This includes government bodies, civil society organizations, multilateral and bilateral agencies, financial institutions, academics, youth…essentially all those who believe in the Movement. The Partner’s Assembly convenes at the CYFI Summit and is responsible in shaping the strategy of the organization, hence the extensive consultation process undertaken to create this strategy.
Partner’s Assembly Executive Committee
3.1.2 Supervisory Board
Supervisory Board Audit Committee Management Board Nominations Committee
188.8.131.52 Executive Committee Assists with the day-to-day tasks of the CYFI Secretariat, including:
Secretariat Figure 8: CYFI Governance Structure 24
Comprised of representatives from banking networks, NGOs, development foundations, multilaterals, academic institutions, corporations, and governments, the Supervisory Board is responsible primarily for strategy and selection and general oversight of the Secretariat. In order to provide more detailed support to the Secretariat, the Supervisory Board has created the following committees:
• Support and evaluate the Managing Director; • Review and approve major organizational decisions, commitments and plans
including expenditures and leases; • Review the budget and recommend it to the Supervisory Board in consultation with the Managing Director; • Evaluate progress toward program and financial goals; • Ensure the continuity of the organization through development and recruitment of staff members; • In conjunction with the Managing Director, provide leadership on organizational transition, structure, and planning.
184.108.40.206 Audit Committee We developed a strong set of financial controls and standards for bookkeeping, expenses, procurement and travel, which are audited annually internally and externally. The Audit Committee oversees these activities, specifically: • Overseeing CYFI’s financial statements and recommending approval of the annual report and accounts; • Overseeing CYFI’s compliance with regulatory requirements and the independent auditor’s qualifications and independence; • Overseeing the performance of CYFI’s internal audit function and independent auditors and recommending external auditors to the Supervisory Board
• Overseeing the risk assessment and management for CYFI including the process for monitoring statutory compliance.
220.127.116.11 Nominations Committee Broadly, the Nominations Committee deals with board succession planning as well as assisting with the development of key organizational documents. Specifically, the Nominations Committee has been tasked with the following: • Make recommendations regarding the Supervisory Board’s composition, operations, and performance; • Develop profiles and recommendations for new Supervisory Board members; • Develop and execute an effectiveness assessment process for members of the Supervisory Board for use by the Chair and the overall functioning of the Supervisory Board and its committees with the exception of the Nominations Committee. The Nominations Committee shall be assessed by the Executive Committee; • Serve in an advisory capacity to the Supervisory Board on matters of organization, management succession plans, major changes in the organizational structure of the Foundation, and the conduct of board activities.
3.1.3 Management Board
3.3 Sustainable Finances
The Management Board is the leadership team of the Secretariat. It is responsible and accountable for the day-to-day management of the Secretariat. It is responsible for fulfilling all the goals outlined in this document. The Management Board has taken the leadership on shaping this strategy based on the feedback from the Partner’s Assembly and the Supervisory Board.
CYFI’s impact has is tracked on various levels 1. Country Level Indicators through the NECIT: The NECIT is a comprehensive and transparent tool to provide a more complete understanding of the status of FEC in a country. It examines the take-up of ECE, FI, and youth entrepreneurship at country level. It also tracks the progress of countries over the years. The purpose of NECIT is four-fold: A. It supports countries in achieving FEC by highlighting gaps and opportunities in FEC; B. It allows CYFI to distill best practices from countries; C. It helps CYFI to select the countries and areas on which to focus its efforts; D. It tracks the impact of the work of CYFI. Regarding this last point: As countries go through the stages in their journey towards increasing FEC in their country, CYFI will structurally document what the involvement of the CYFI Secretariat will be, i.e. in which stages and activities CYFI was involved, and which role CYFI played. This M&E framework will be further detailed in Q3 and Q4 of 2016.
The CYFI Secretariat strives to maintain a budget that balances stakeholder needs and fiscal prudence. The annual budget of the organization is approximately €1.3 million, with which we can maintain the strategy set forth in this document.
3.1.4 CYFI Secretariat Team Being an international movement coordinating and driving activities around the world, CYFI’s team is made up of staff and interns, who reflect the organization’s diversity and international character, with members hailing from 5 continents. The team encompasses expertise in education, finance, research, communications as well as other areas, and operates day to day activities, including maintaining our network, reaching out to new stakeholders and developing financial inclusion and education strategies and materials. The Management Board of CYFI supervises Day to day activities of the team. The Management Board also ensures that the strategy developed with the assistance of the Supervisory Board is translated into actions and targets are reached.
The Secretariat is able to maintain these high levels of service through a joint funding model whereby stakeholder organizations share the cost of organizing events, workshops, and activities. Overall, following this model lowers the cost of impact for CYFI and creates a greater sense of buyin in stakeholders, as they have not only a practical stake in the outcomes, but a financial one as well.
Activity level KPIs: In addition to the highlevel goals mentioned in chapter 4.4, we have also defined a larger number of activity level KPIs (See Appendix 1). KPI tracking and progress reporting is a continuous activity.
3.4 Closing Remarks The start of 2016 marked the end of the first campaign of Child and Youth Finance International and as such we took a moment to reflect on the first phase and to look forward to the next one. The process was kicked off in mid-2015 when CYFI conducted a partner feedback survey with a limited number of targeted stakeholders (n=162) to gain some reflection on our past work. With respondents from 5 continents composed of multiple sectoral representations, the feedback we received was very valuable. From our two largest stakeholder groups, government and civil society, we received positive ratings from 94% and 85%, respectively. After that, we started the process of formulating the CYFI 2020 strategy in earnest, going through an intensive, structured strategy formulation process as discussed in this document. Being in essence a network organization, CYFI used the feedback from ~400 key stakeholders as the main input into the strategy. Initially growing out of Aflatoun, we believe CYFI has been successful in creating momentum for Economic Citizenship Education. In the next phase, we see the need to increasingly focus on Financial Inclusion, while maintaining the position that Financial Inclusion should always go hand in hand with ECE. For this, we will work intensively
with governments, institutions, and organizations across the world while maintaining our multistakeholder approach. We will further strengthen our position as the leader in the field of FEC for children and youth and as an expert hub on matters relating to Economic Citizenship Education and financial inclusion. We will continue with our successful, high impact innovations, - improving existing initiatives and developing new solutions where they are needed– some of which will be successful while others will no doubt fail. We will continue to set the standard in Full Economic Citizenship for children and youth. The goal – as should be the goal of any NGO – is to be so successful at what we do, and that our successes reach a tipping point after which the work of CYFI is no longer needed and the organization as such can cease to exist. In the next phase, we will work towards that goal of achieving FEC for all children and youth and making ourselves redundant, in order to create a world where every young person can flourish.
Appendix 1: KPIs Activity
Role A: Advocate Global Money Week
# countries to participate in Global Money Week +#% direct reach increase/year of children and youth participating in Global Money Week # governments leading Global Money Week in their country % increase of participating organizations % increase of activities % increase of adults facilitating
% yearly increase in the applications for the different awards # of press mentions (awards specific) # of viewers through webcast (where possible)
# endorsements (product endorsement and ECE curriculum) # of C&Y reached through endorsed products and curricula $ generated through fees # external evaluation committee members
100 countries included in the NECIT Results of the tool used in discussions with 50 of gvts
Role B: Network Connector & Expert Hub
Best practice sharing & Documentation
# of publications (see publication list) # of citations in global and regional publications # CYFI contributions to external resources # downloads/hits on website for publications + # translations Score on relevance and quality (coming out of surveys) Number of shares/likes/retweets on social media Frequency of network consultation on activities and publications
# (sub)regional meetings (per regions requesting them) # of participants (varies upon regions and meeting type) Relevance/satisfaction score of participants Summit every 2nd year External summary report on meetingsâ€™ outcomes + intentions summary message Concrete next steps developed with each country present in the meetings # issue specific working groups + diversity of participation
# of community members # of jobs created % of revenue growth of community members $ invested in young entrepreneurs through the network # visitors website # of country hubs and hub members # downloads of tools and resources # of consultations for input in policy papers # youth entrepreneurship related policies
Role C: Network Advisor Pilot programs (e.g. SchoolBanks)
# of SB/FI projects launched and evaluated $ increase in savings accumulated by children Increase % of non-dormant accounts Increase in financial knowledge # entrepreneurial ventured started # local press mentions # multi-sectorial implementation groups
Workshops and trainings
# workshops # participants/workshop Relevance/satisfaction score of participants Creation of high-quality materials for the workshops (including marketing and content) Capacity building for the trainers (CYFI staff) # curriculum/products developed
Technical Assistance (facilitation)
# of TA projects delivered by CYFI # of TA projects delivered by consultants in the CYFI network Satisfaction score of delivery of projects $ received by CYFI secretariat in overhead or service fees # CNRP associates in the system
Organizational KPIs: Overall, Communications, and Fundraising Overall
# countries that moved 1+ stage according to system change framework # stages that were moved with CYFI involvement # activities that were undertaken by the network Type of role that was played by CYFI when stages were moved (% advocate role, % network role, etc.) FTE cost per moved stage
# social media impressions Click-through rate # social media followers # blogs + high profile blogs # website visits # newsletters/year, # summit daily digests, and # Global Money Week daily digests Tweets/retweets # profile pieces # international press mentions # articles with CYFI mentions # Global Money Week report # translations
$ core funding raised $ program specific funding $ revenue generated by Ye! (self sustaining) $ pro bono donations from network Diversity of the funding sources
Appendix 2: Detailed Results of Network Consultation Process
m rn Go ve
e2 7% op
lat e 7% ral o r
en t2 7%
Latin America 11% ric a1
Other includes: Funding agency, youth, media, and bilateral organizations
Figure 9: Breakdown survey respondents by region and sector
ty cie So vil 7% 2
Se Fi rvi na ce nc i 15 Prov al % id er
ca eri m A rth 2% No 1
Breakdown survey respondents by sector
The survey also shows that there is still work
Breakdown survey respondents by region
7% MENA ia As pe al ro ntr Eu Ce ther 0% O 1 &
The respondents were asked what challenges they were facing in achieving 100% Financial Inclusion and ECE in their countries. The results are shown in Figure 10. By far the most often mentioned challenge is “Lack of resources”, followed by “Overloaded agendas” and “Financial Inclusion and/or ECE not a priority”. All three could be interpreted as a prioritization issue, since if FI/ECE were priorities, resources, as well as time, might have been freed up. This indicates that there is still work to be done at an advocacy level. It could also indicate that stakeholders might benefit from support that is less costly from a resource perspective (e.g. more affordable Technical Assistance).
Finally, the findings indicate that a “Lack of strong relations with other stakeholders” is also an obstacle to increasing FI/ECE for youth. This suggests that CYFI has not yet finished its job as a network facilitator.
320 participated in the survey and as Figure 9 show, the pool of respondents represented a wide range of sectors and regions. In terms of regions, almost half of respondents came from either Europe (27%) or Africa (19%). In terms of sectors, the government sector (27%) and civil society (27%) were well represented, which reflects the fact that CYFI has worked most intensely with stakeholders from these sectors.
to do in terms of knowledge/expertise sharing: “Lack of Knowledge of CYFI and/or EC related topics” and “Lack of expertise in particular technical areas” are the 4th and 6th most often mentioned challenges, respectively.
Network Survey – detailed results
When asked in which role CYFI could help the stakeholders most in achieving FEC, the respondents found all the roles that were listed (Advocate, Network, Connector, Expert Hub, Technical Advisor, Monitor, Program Manager) at least somewhat important, with scores ranging from 3.8 to 4.5 on a 1 (“Not at all important”) to 5 (“Very Important”) scale (Figure 11). However, the roles that involved the least amount of on the ground, practical support, were rated highest: Network Connector (4.5), Expert Hub (4.4), and Advocate (4.2). This can be interpreted as a clear push to continue to do what CYFI intended to do at its inception: Advocate for systems change through a multistakeholder network, while providing the network with the research and frameworks that can aid them in the work. It is a signal that we should resist the temptation to become a direct programming organization, despite the fact that fundraising for direct programming is generally easier than for a Systems Change organization.
Challenges facing respondents in reaching 100% ECE and Financial Inclusion for children and youth
Importance of following CYFI roles to help stakeholder achieve Economic Citizenship for C&Y
N=320, Averages on 1-5 scale, where 1=“Not at all important” and 5=“Very important” Lack of resources Overloaded agendas Financial inclusion and/or ECE not a priority
Lack of knowledge of CYFI and/or EC related topics
Lack of strong relations with other relevant stakeholders Lack of expertise in particular technical areas
Lack of political influence Slow in scaling operations
Lack of tangible results to convince decision makers Lack of buy-in from leadership
Resistance from key stakeholders to the initiative Other
Change in leadership has stalled initiative(s)
Survey question: “What challenges is your organization facing in reaching 100% of children and youth in the your country with Economic Citizenship Education and financial inclusion (check all that apply)?”
Survey question: “For the future, please rate how important each of the following CYFI roles can be in helping you to achieve the goal of Economic Citizenship for children and youth?” [Advocate, Network Connector, Expert Hub, Technical Advisor, Monitor, Program Manager]
Figure 10: Challenges facing stakeholders
Figure 11: Envisioned role for CYFI 31
We also asked respondents, going forward, how beneficial the various CYFI activities could be in helping the stakeholders achieve Full Economic Citizenship for children and youth in their countries (Figure 12). Again, all activities were considered important, with scores (again) ranging from 3.8 to 4.5. Documenting/publishing, network activities, and Global Money Week received particularly high ratings, which is very much in line with the preferred role for CYFI (advocacy, network connector, and Expert Hub). Awards, Technical Assistance, and endorsements are considered less useful. When comparing respondents from the government and from civil society, we see very similar results, with a mild uptick in Global Money Week and Technical Assistance for government agencies. However, there are some interesting differences across regions, e.g.: • European organizations viewed documentation of best practices most favorably (spreading knowledge) • Asian organizations rated Ye! the most beneficial (entrepreneurship) • Central Asian & other European organizations ranked summits, working groups, workshops and technical resources the highest (gaining knowledge) • African organizations expressed a strong desire for most activities, representing a need and a great opportunity for the region • Latin American organizations highly ranked publications and documentation
• MENA showed a high percentage of respondents having little knowledge of these topics • North American organizations desired documentation and technical resources
It is clear that different regions/countries have different needs, and we should, therefore, support different countries in different ways.
An external team, consisting of consultants from our partners Deloitte and McKinsey & Company, held approximately 40 anonymous interviews. A range of different types of stakeholders were interviewed, selected by sector as well as their level of support to CYFI thus far (i.e. a combination of weak and strong supporters). The results were very much in line with the survey results. The responses can be summarized into four main categories:
Importance of following CYFI activities to help stakeholder increase Economic Citizenship for C&Y N=320, Averages on 1-5 scale, where 1=“Not at all beneficial” and 5=“Very beneficial” Documentation of Best Practices Publications and Technical Resources Regional Meetings Global Summits Global Money Week Issue-specific working groups Monitoring and Evaluations Product Development Workshops SchoolBanks Entrepreneurship Platform (Ye!) TA with National Strategy Formation TA with Curriculum Development TA with Financial Product Development CYFI Curriculum Endorsement Awards CYFI Product Endorsement Score (1-5)
In-depth Interviews – detailed results
Survey question: “For the future, please rate how beneficial each of the following CYFI activities can be in helping your organization achieve the goal of increasing Economic Citizenship.”
Figure 12: Importance of CYFI activities
Develop an index and quantitative analyses A. Respondents found it hard to articulate how they measure progress and impact on FEC for youth. In addition, no respondent was able to point to an indicator that is used directly for FEC. Many wish to have such a tool and would want to compare themselves with peer countries B. Provide material to illustrate the expected impact from FEC for youth Advocate and share information A. Two-thirds of respondents indicated that the best way to influence decision makers is through advocacy and bringing forward best practices B. Networking allows public authorities to learn from good examples and see the benefits of Full Economic Citizenship
Focus on core differentiators A. Many respondents believe that CYFI brings a distinctive added value through network facilitation and a focus on youth B. Attention to financial inclusion and strong capabilities to spread best practices were mentioned by the majority of respondents. Have a clear mission, more capacity and a unique niche A. Respondents praised the activities of CYFI, recommending the build-up of internal capacity and keep a strong focus on core activities B. Notable suggestions: develop advocacy capacity for local partners, focus on the link between financial inclusion hand extreme poverty, do more in French Africa
McKinsey and Deloitte have synthesized the findings into 5 key hypotheses: 1. 2. 3. 4. 5.
Concentrate on financial inclusion Cultivate trusted relationships with public authorities Become the global leader in advocacy activities Build upon existing indices to have an adapted composite ranking for “Full Economic Citizenship” for children and youth Be distinct by becoming a reference provider of strategic and methodological support
Regional Webinars – detailed results With these key findings in mind, we held a series of regional webinars (one per region) to test some of the hypotheses that arose from the survey and the interviews. In general, the findings confirmed the initial findings and hypotheses, with some interesting additional comments (Figure 13).
General (feedback heard across regions)
• Network connector role is important (e.g. regional meetings) • Publications and best practices (not necessarily academic papers) would be very valuable • Tracking Tool would be very useful – however, we should see if we can partner with other initiatives (e.g. Finscope surveys, OECD, AFI, WB)
• Being able to measure “impact” is also quite important, and this should be something that CYFI should continue to focus on – not only by number of youth reached, but also behavioral or attitude changes • We should also look into: Connection of financial literacy to school dropout; more focus on gender-related matters in ECE and financial inclusion; the growing need to put youth entrepreneurship into what CYFI is doing, as this is a way for the to build assets, but also provide employment for others (however, focus on livelihoods should not distract youth from finishing or completing their studies)
• Need to look at institutionalizing financial inclusion in financial institutions through Schoolbank • Develop the business case for the banks so that they can see the benefit otherwise it will not become sustainable (need to see cost/return curve) • (Some) governments recognize the importance of financial sector reform and then there is no need of political influence: the starting point is already here
Europe and C. Asia Latin America & Carribean
• The strategy should be based on the business case for governments • Although the market is competitive, we should continue focusing on FE and not only on FI. Banks are in a trend to reduce FE to focus on inclusion or wallets but we should not follow the trend
Figure 13: Outcomes of regional webinars 33
Child & Youth Finance International
Global Money Week (GMW)
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