2016 ─ Landscape Series: Financial Inclusion for Children and Youth

Financial Inclusion for Children and Youth CYFI Landscape Series

The Child & Youth Finance International (CYFI) Landscape Series The CYFI Landscape Series consists of three documents that look at economic citizenship for children and youth from different perspectives.

Financial Inclusion for Children and Youth Financial Inclusion Landscape looks back on the developments of recent years in the areas of financial inclusion policies, innovative financial products for children and youth and practical models of implementation. It lists key players and initiatives and provides recommendations for policy makers and practitioners.

Economic Citizenship Education for Children and Youth Economic Citizenship Education Landscape follows the same structure, focusing on curriculum frameworks and innovative programs advancing financial, social and livelihoods education through government authorities, private sector and civil society.

Research Evidence for CYFI’s Model of Economic Citizenship for Children and Youth Research Evidence Landscape focuses on research evidence supporting CYFI’s model on economic citizenship. It provides a comprehensive and objective overview of the development of the literature on economic citizenship for children and youth.

It includes the conceptual development of the CYFI Theory of Change and lists additions to the literature since the conception of the Child and Youth Finance Movement in 2011. It also looks at the opportunities and challenges for future research.

Financial Inclusion for Children and Youth CYFI Landscape Series

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CONTENTS 1.

Executive Summary

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2.

Changes to the Landscape over the Past Five Years

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2.1 2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.4

Key Definitions and Perceptions of Financial Inclusion Frameworks and Principles Supporting Financial Inclusion for Children and Youth Evidence of Financial Inclusion for Children and Youth Research on the Relevance of Financial Inclusion for Children and Youth Research on the Impact of Financial Inclusion for Children and Youth Developments in Financial Inclusion Policies Technological Developments Supporting Financial Inclusion Financial Product Development for Children and Youth The Role of Non-Formal Financial Products Research Limitations and Opportunities for Further Research Opportunities and Challenges for Increasing Financial Inclusion

12 14 18 18 19 20 21 22 23 24 24

3.

Current Financial Inclusion Landscape

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3.1 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.3 3.3.1 3.3.2 3.3.3 3.3.4

Statistics on Financial Inclusion Key Players Funders Coordinators Researchers Implementers Key Initiatives Policies Products Programs Specific target groups

28 30 30 31 32 32 32 32 34 36 40

4.

Future Outlook

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4.1 4.2 4.3 4.4

Recommendations for the Children and Youth Finance Movement Recommendations for Policymakers Recommendations for Practitioners Conclusion

46 46 47 48

Annex A: List of Acronyms Annex B: Glossary Annex C: Bibliography Annex D: Key Players Detailed Overview Annex D: Banking Products Assessed for Child Friendliness

50 51 55 62 63

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Child & Youth Finance International (CYFI) CYFI is a global system change organization working with partners in 132 countries. We have taken on the challenge of ensuring that everyone works together to reshape financial systems in order to economically and socially empower children and youth worldwide. CYFI has committed to three different roles: advocate, network connector & expert hub and network advisor.

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Acknowledgements CYFI would like to thank the following organizations and individuals that have provided valuable feedback on the CYFI Landscape Series: • The CYFI Supervisory Board • The financial institutions, civil society organizations and governments that provided information about their products and programs • Partners and Stakeholders in the CYFI Network:     

Aflatoun Arab Urban Development Institute Brookings Institute German Savings Bank Group Iowa State University

    

MyBnk OECD South African Banking Association Teach a Man to Fish The MasterCard Foundation

 Union of Arab Banks  United Nations Global Compact  United Nations Capital

Development Fund  Universiti Putra Malaysia  Women’s World Banking

CYFI would also like to thank our sponsors, whose contributions have made the CYFI Landscape Series possible:

Landscape Series - Research

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1. Executive Summary This paper is part of the Child and Youth Finance International Landscape Series. Each paper in the Landscape Series looks back on the developments of recent years and looks forward to the future. This paper focuses on financial inclusion for children and youth. It provides a comprehensive and objective overview of the current landscape of financial inclusion for children and youth. It includes the most important theoretical insights, principles, and frameworks. In addition, it provides an overview of the key players and current initiatives focusing on financial inclusion for children and youth. Finally, it gives insights into the focus areas for the upcoming years, including opportunities and challenges.

The objective is to provide those interested in working on financial inclusion for children and youth with useful starting points and suggestions for action.

The topic of financial inclusion has seen significant progress in the past five years. Continuous advocacy by civil society and intergovernmental organizations such as the United Nations and the World Bank has placed the topic firmly on the international development agenda. Since 2011, three-quarters of a billion people have gained access to financial services, and the number of young adults (age 15-24) holding an account at a formal institution increased from 37 to 46 percent.1 The fact that this data is available through the World Bank Global Findex is already a great achievement. The work of the Child and Youth Finance Movement has resulted in a widespread awareness of the importance of including children and youth in national financial inclusion strategies, of adding financial, social, and livelihoods educations to school curricula, and of developing Child and Youth Friendly banking products. Large and long-running interventions have provided essential information about methods of effectively approaching financial inclusion for children and youth. Offering low-cost products by trained bank employees through innovative delivery channels can influence account uptake and usage.

Complemented by other research, the influence of financial, social, and livelihoods educations on financial inclusion becomes clearer as well. Children learn more effectively when they can apply their financial learning through access to safe and appropriate financial services and are further empowered when financial education focuses on more than just the management of money.

But the work is not yet done. To achieve the United Nations 2030 Sustainable Development Goals, harnessing the dynamism and entrepreneurial spirit of youth is imperative. In a world that is dominated by children and youth, empowering them with financial inclusiveness and literacy is a sure tool to bring an end to poverty and increase economic growth. Still less than half of all young people worldwide (aged 15-24) currently save at a formal financial institution. Data on financial inclusion rates for children under 15, or additional data on how, where, and how much they save, is not even available. A further effort is also needed to collect this data to be better able to assess the scope of these problems and develop more effective interventions. While many financial institutions offer products to children, but restrictions on age, proof of identity, and control over the account mean most of these products are not very child-friendly. Financial education, let alone social and livelihoods educations, is still not a standard component of the educational curricula in many countries.

The involvement of youth in developing national strategies and financial products remains limited, though it is key to having their voices heard and concerns raised. Further research is needed to better understand the long-term impact of financial inclusion and Economic Citizenship Education on behavior and skills. There have been successful interventions, but achieving significant scale and sustainability remains elusive. The business case has to be further refined so that financial institutions can commit to providing these services as part of their regular business processes. Only when these questions are answered, can financial inclusion fully contribute to economic citizenship for children and youth worldwide.

1

World Bank (2015)

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2. Changes to the Landscape over the Past Five Years

2. Changes to the Landscape over the Past Five Years This chapter looks at the developments in the financial inclusion landscape for children and youth. It focuses primarily on theoretical and research contributions. As a part of this, it introduces a number of key definitions. Furthermore, this section introduces a number of frameworks and principles that provide a sound theoretical basis for approaching financial inclusion for children and youth. Additions to the literature based on a number of experimental studies guide implementation of key initiatives that are discussed in the next chapter.

2.1 Key Definitions and Perceptions of Financial Inclusion The concept of financial inclusion has not changed much since it was first coined in the early 1990s.2 Drawing from the definition of the Center for Financial Inclusion, financial inclusion is defined in this paper as ‘access to appropriate, quality, and affordable financial products and services’.3 A distinction must be made between formal and non-formal financial services. Formal financial services are linked to a financial institution and regulated by the central bank while non-formal financial services, like village savings groups, are not. Worldwide, millions of people do not have formal access and therefore cannot save, accumulate wealth, or access credit in a safe and regulated manner. Many of these individuals are children and youth. A child is an individual under the age of 18, or under the age of majority as prescribed by national law.

Youth are persons between the ages of 15 and 24, as defined by the United Nations.4 It is important to note that this definition is highly contested and differs per region. In many African countries, for example, persons are considered ‘youth’ until reaching 35 years of age.5 More than 1.2 billion people worldwide are aged 15 to 24, but less than half of them have access to formal financial services.6 Worldwide, unemployment rates for young people are between two and three times higher than for adults, contributing to the persistence of youth poverty. However, a large part of the working youth is underemployed, with 28 percent of young workers being paid less than $1.25 a day.7 Like with the definition of youth, there are regional differences in the burdens of poverty and unemployment.

These are serious challenges, but continuous advocacy by civil society and intergovernmental organizations like the United Nations and the World Bank has placed the topic firmly on the international development agenda. Since 2011, the number of young adults (aged 15-24) holding an account at a formal institution increased from 37 to 46 percent.8 The work of the Child and Youth Finance Movement has resulted in a widespread awareness of the importance of including children and youth in national financial inclusion strategies. It has also promoted the addition of financial, social, and livelihoods education to school curricula. Furthermore, it supported the development of child and youth-friendly banking products.

At the heart of these developments is a fundamental shift in the mindsets of policymakers, practitioners, and the financial sector. For a long time, offering financial services to children was seen as unnecessary or even harmful, as it was assumed young people did not have the knowledge and skills to manage those services sensibly and were prone to exploitation. An additional concern was that access to financial services would encourage young people to leave school early and enter the labor market. However, in recent years, CYFI has seen its network partners realizing that these consequences are not necessary, given that appropriate products are increasingly being offered and that greater attention is being paid to increasing financial literacy amongst young people. When this is accounted for, financial inclusion of children and youth can be a way to develop, teach, and stimulate economic empowerment and growth.9 Building on the achievements in the realm of financial inclusion, the concept of economic citizenship gained increased attention. It complements the more narrow applications of financial inclusion with education, creating a holistic approach to financial inclusion. The Academic Working Group of Child and Youth Finance International (CYFI) brought together leading academics in the field of financial literacy and children’s rights, combining their expertise to develop a detailed model of economic citizenship.10 Economic citizenship can improve economic and social well-being, reduce income and asset poverty, and lead to sustainable livelihoods for children and youth. The model of economic citizenship consists of

2

European Commission (2008) Center for Financial Inclusion website 4 UNESCO website 5 African Union (2006) 6 Plan, Barclays, CARE (2013) 7 Idem 8 World Bank (2015) 9 CYFI Secretariat 10 CYFI website 3

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three components: financial inclusion, financial education, and social and livelihoods education. These components are the building blocks of empowerment and financial capability that underpin economic citizenship for children and youth.

Economic Citizenship  Reduced income and asset poverty  Economic and social engagement  Sustainable livelihoods  Economic and social well-being  Rights for and responsibilities to self, family, and others

Figure 1. Child and Youth Finance International (CYFI) Model of Economic Citizenship

Financial education includes instruction and/or the provision of materials designed to increase financial knowledge and skills. Social education is the provision of knowledge and skills that improve individuals’ 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 develops the ability to secure a sustainable livelihood through skills assessment and a balance between developing entrepreneurial and employability skills. Empowerment is the sense of confidence and efficacy experienced by children and youth through controlling their own lives, understanding and claiming their rights, and having empathy toward others. Financial capability combines a person’s ability to act with the opportunity to act. In reaching a high level of financial capability, individuals must have financial knowledge and skills as well as access to appropriate financial services in order to fully enhance their social and economic well-being.11 As economic citizens, children are the start of a long-lasting flow of savings into the economy that can be profitably used by investors to increase output to generate income. The Child and Youth Finance Movement believes that in order for children to become full-fledged economic citizens, financial, social, and livelihoods education must be linked with safe and appropriate financial access. Research shows that children and youth are more likely to continue using financial products when financial education is complemented by opportunities to apply what is being taught.12 In addition, it also shows that financial education is more effective in achieving changes in behavior and attitude when it complements other educational components.13 While this paper focuses primarily on the landscape for financial inclusion, it is important to keep in mind that inclusion is only one pillar of economic citizenship for children and youth.

At the conception of the Child and Youth Finance Movement, CYFI’s Financial Inclusion Working Group produced an internal discussion document, examining trends and practices in child savings products, programs and policies. It was a snapshot of the landscape of financial inclusion for children and youth. In this document, the Working Group presented a wide range of questions that needed answering to better understand how to promote financial access for children and youth. A summary of these questions can be found below. Throughout this Landscape paper, answers to most of these questions are provided based on insights that have been gathered in the past five years. The paper will also show that in some areas, more research is needed to better understand the impact of financial inclusion for children and youth.14

11

CYFI (2013b) CYFI (2013b), OECD (2014), CFED (2014) 13 O’Prey & Shepard (2014) 14 CYFI (2011a) 12

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Questions from CYFI Financial Inclusion Working Group in 2011 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

What is the impact of financial, social, and livelihoods educations on financial capabilities?

What have been some of the negative effects of financial inclusion on children at an early age?

How can scale and cost reductions for savings services be achieved?

What should be the role of donors in achieving scale and sustainability?

What is the impact of incentives and conditions on effect of financial inclusion?

How to engage a wide variety of financial institutions in offering child-friendly banking services?

How to make use of mobile technology to provide savings services to young people in remote areas?

How to link non-formal savings groups to formal financial institutions?

Should non-formal savings methodologies be integrated in the banking principles?

What should be the role of NGO's in promoting the child-friendly banking principles?

In the past five years, both the perception of offering financial services to children and the concept of financial inclusion have changed. Concerns remain, but policy makers and practitioners see how youth financial services support youth empowerment and poverty reduction. Economic citizenship complements access to financial services with access to financial, social, and livelihoods education and thus builds financial capability by doing going further than equipping youth with a bank account.

2.2 Frameworks and Principles Supporting Financial Inclusion for Children and Youth A number of frameworks and principles guide financial inclusion initiatives by institutionalizing leading practices. Some of these apply specifically to children and youth. This section lists the key principles, and frameworks that have been developed in the past years.

2.2.1 Child and Youth Friendly Banking Principles The CYFI Secretariat has worked closely with, and consulted a wide range of, stakeholders from the public and private financial sectors as well as the social and academic sectors to develop the Child and Youth Friendly Banking Principles.

Banco Santander, Central Bank of Indonesia, Global Alliance for Banking on Values, Union of Arab Banks, and the World Savings Banks Institute are just some examples of organizations that contributed to their establishment. The Principles are based on the UN Convention on the Rights of the Child and facilitate an international benchmark for safe and reliable banking products for children and youth. They also build awareness amongst financial institutions of how to contribute to the empowerment and protection of children and youth. By focusing on availability, accessibility, control, costs, and education, the Principles cover a wide range of topics that are relevant when developing financial products for children and youth.

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They are widely available and accessible to children and youth despite their economic, social, cultural, or religious situation, gender, age, or ability

1

Availability and accessibility for children and youth

2

Maximum control to children and youth

3

Positive financial incentive for children and youth

To build confidence as children and youth enter the financial system, positive financial incentives (e.g. no overdraft and relatively higher interest rates) are important

4

Reaching unbanked children and youth

The financial institution proactively reaches out to unbanked children and youth as part of a larger financial inclusion agenda, within the boundaries of local jurisdiction

5

Employing child and youth friendly communication strategies

6

A component of Economic Citizenship Education

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Monitoring of child and youth satisfaction

8

Internal control

They provide the maximum possible control to children and youth within the boundaries of local jurisdiction and ensure financial ownership

The communication and marketing materials around the product are child and youth centered, connecting to their needs, interests and level of comprehension, complemented by the ability of all staff within a financial institution to interact in a child friendly manner In combination with the product, children and youth are offered a component of Economic Citizenship Education, with elements of financial, life skills, and livelihoods education

The financial institution monitors the extent to which the product and relating services satisfy the needs and interests of children and youth

The financial institution has internal controls in place on all these Principles

Figure 2. CYFI Child and Youth Friendly Banking Principles

Though some of the reasoning for the principles could also apply to non-formal savings products, the principles are intended to apply specifically to formal financial institutions. CYFI believes that although non-formal savings methods can provide a stepping stone towards formal financial inclusion, children and youth deserve to be part of the formal financial system and the rights and responsibilities that come with such access. Introduction to that formal system should be safe, protected, and easy to understand, and this is precisely what the banking principles aim to achieve.

Child and Youth Finance International developed a certification process for financial institutions to endorse their products for children and youth. Though quite a number of financial institutions have drawn on these principles to develop products and services for children and youth, the number of requests for actual certification remains low. CYFI understands from its network partners that this is partially because banks view it as another standard in an already crowded regulatory landscape. Financial institutions also have concerns regarding the credibility of the endorsement, since it is not provided by a common regulatory or supervisory body. Furthermore, service providers are hesitant to voluntarily submit themselves

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to an assessment for which they have to pay and that could lead to significant demands for product changes. 15 When assessing a small sample of banking products available for children and youth in section 3.3.2, it becomes clear that though many financial institutions offer products for children and youth, these often do not meet all criteria expressed in the Principles.

2.2.2 The Children’s Rights and Business Principles The Children’s Rights and Business Principles (CRBP) set out ten actions that business can take to respect and support children’s rights. The CRBP were developed in a process led by UNICEF, UN Global Compact, and Save the Children. They build on the UN Guiding Principles on Business and Human Rights, UN Global Compact Principles, relevant International Labor Organization (ILO) Conventions, and the Convention on the Rights of the Child. The CRBP call on businesses to respect and support children’s rights throughout their business activities and relationships by putting in place the appropriate policies and processes. To create a product that is more than just a marketing tool, it is important that the principles are integrated into a company’s vision and way of working.16 The principles are described below: 1.

Figure 3. Children’s Rights and Business Principles

Meet their responsibility to respect children’s rights and commit to supporting the human rights of children 2. Contribute to the elimination of child labor including in all business activities and business relationships 3. Provide decent work for young workers, parents, and caregivers 4. Ensure the protection and safety of children in all business activities and facilities 5. Ensure that products and services are safe, and seek to support children’s rights through them 6. Use marketing and advertising that respect and support children’s rights 7. Respect and support children’s rights in relation to the environment and to land acquisition and use 8. Respect and support children’s rights in security arrangements 9. Help protect children affected by emergencies 10. Reinforce community and government efforts to protect and fulfill children’s rights

2.2.3 Smart Campaign Client Protection Principles The Smart Campaign is supported by Accion’s Center for Financial Inclusion (CFI) and the Consultative Group to Assist the Poor (CGAP) and has an international Steering Committee comprised of representatives from a broad range of stakeholders such as banks, banking associations, donors, investors, regulators, consumer advocates. The United Nations Capital Development Fund (UNCDF), under the YouthStart program, adapted the Smart Campaign Client Protection Principles and indicators to reflect the particular needs of children and youth, in line with the Child and Youth Friendly Banking Principles.17 1.

2.

3.

4.

5.

6.

Appropriate product design and delivery Prevention of over-indebtedness Transparency Responsible pricing Fair and respectful treatment of clients Privacy of client data

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CYFI Secretariat (2016) The MasterCard Corporation & CYFI (2014) 17 UNCDF (2013b) 16

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7. Mechanisms for complaint resolution 8. Child and youth-friendly products and services

2.2.4 Emerging Guidelines for Linking Young People to Financial Services In 2009, Making Cents International (MCI) conducted a global survey funded by The MasterCard Foundation that examined the state of practice of financial inclusion for children and youth and future outlooks for youth financial services. The 183 respondents consisted of financial institutions and youth-serving organizations. Previously, practitioners and other stakeholders had expressed a need for information and capacity building on how to best link young people to appropriate financial services. From the survey and later consultation with stakeholders, MCI distilled seven emerging guidelines for design and implementation of youth-inclusive financial services. These guidelines have been used by a number of financial institutions in developing products for children and youth. In order to offer youth quality services on a substantial scale and sustainable basis, financial service providers should:18 1.

2.

3.

4.

5.

6.

7.

Involve youth in market research and product development Develop products and services that reflect the diversity of youth Ensure that youth have safe and supportive spaces Provide or link youth to complementary non-financial services Focus on core competencies through partnerships Involve community Establish institutional readiness

2.2.5 Business Case Framework for Youth Savings Financial institutions seem to be reluctant in offering financial products to children and youth specifically. They believe youth are difficult and, more importantly, expensive to bank. Under the framework of the YouthSave Consortium, the Consultative Group to Assist the Poor responded by developing a business case framework that helps financial institutions understand under which conditions there might be a positive business case for serving children and youth. The framework, based on existing literature, macro-level data correlations, and interviews with financial service providers, looks at the various factors influencing the profitability of youth savings products.

Competition Market-Level Levers Regulation & Policy

Opportunity Cost Capacity & Infrastructure

Institutional Levers

Time Horizon

Youth Segments

Cost and Revenue Drivers: Business Areas

Segment Specific Levers

Profitability Drivers

Figure 4. CGAP Business Case Framework

18

Making Cents (2015), ‘Emerging guidelines for youth-inclusive financial services’ at Caribbean Microfinance Forum 2015

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The framework shows how influences at the market, institutional, and client segment levels drive different cost and revenue streams. Moving from the bottom to the top, there are several so-called decision points that will eventually lead to the final decision of providing a youth product or not. The decision points and their considerations are listed below.

Lever

Decision point

Consideration

Market

How competitive is the environment?

Market

What are the regulatory parameters?

Institutional

What are the opportunity costs of offering youth savings instead of investing resources in other ventures?

What is the institution’s capacity and infrastructure to allocate resources to youth savings?

In highly competitive environments, capturing future clients early provides a competitive advantage. Competitiveness might vary between geographies and income groups.

When the minimum age for opening an account is lower and identification requirements less strict, the market potential is higher and costs of serving youth is likely to be lower.

For growing institutions or those in non-saturated markets, the opportunity costs can be substantial.

Institutional

Institutional

Over what time horizon does an institution expect (or require) profitability from youth savings?

Institutional

How strong of a motivating role do social mission and corporate social responsibility play?

Which client sub segment(s) should the institution target?

Segment

Capacity will be greater in mature institutions that are able to leverage an existing network of branches and information systems.

The business case for youth is most compelling when looked at from a long-term perspective. This is often more interesting for national than for multinational players.

A social motivation can justify a patient approach to the business case.

General segments are minors (below 18 years), students (age 18-25) and working youth (also age 18-25). Each segment requires its own level of investment and outreach.

Table 1. Decision Points in the CGAP Business Case Framework

In addition to these levers, the framework identifies cost and revenue drivers like marketing, product, delivery, operations and credit and reputational risk.19 Like with any commercial business, understanding the cost and revenue drivers provides an opportunity to influence profitability. By using below-the-line marketing, targeting areas of high youth concentration like schools and community centers, and using youth-friendly sales agents, cost efficiencies can be optimized. Standardizing operational processes and training efforts help to increase outreach numbers while keeping costs low. Cross-selling and product differentiation based on client segmentation are just two ways to generate revenue efficiencies. Investing in nonfinancial services and technology can boost profitability. The cost reduction from using alternative channels for account opening is not that significant, but technology does facilitate increased use of available products.20 All of the frameworks above provide guidance for the development of youth financial services, focusing on different aspects. Financial service providers can be endorsed for having implemented the Child and Youth Friendly Banking Principles and the Smart Campaign Client Protection Principles correctly. However, uptake of this endorsement is a challenge, presumably because the products are not yet at the level at which they would earn endorsement. Nonetheless, like the Emerging Guidelines, they are practical standards when developing products for youth. Overall, these frameworks have contributed to standardizing youth financial inclusion efforts. However, this has been more on a voluntary basis than any other and financial institutions seem hesitant to undergo formal assessments.

2.3 Evidence of Financial Inclusion for Children and Youth In the past years, new research has further complemented the existing body of literature on financial inclusion. Its relevance is becoming clearer, as is its impact. This section provides an overview of new the insights into various aspects of financial inclusion for children and youth.

2.3.1 Research on the Relevance of Financial Inclusion for Children and Youth Several studies have shown the relevance of financial inclusion for children and youth. Youngsters want to save and do so when they get the opportunity. However, the chances that they actually receive these opportunities are still limited.

19 20

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CGAP (2014a) The MasterCard Foundation (2015)

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According to the World Bank Global Findex, children aged 15 to 24 are between 10 to 50 percent less likely to have an account at a formal institution than adults. 21 The YouthSave research, conducted in a coalition consisting of The MasterCard Foundation, Save the Children, Washington University, New America, and CGAP not only shows that children (mostly aged 12-18) want to save in formal savings accounts but also that younger youth (under the age of 13) actually save more often than older youth, which strengthens the belief that it is important to introduce children to this topic at a younger age than is now common. It should be noted, however, that these results were partially due to the fact that younger savers withdraw less.22 Because of the difference in saving methods between younger and older children, it is important to adapt financial products to different age groups. Luhrmann, Sera-Garcia, and Winter examined the impact of a short financial education program on teenagers aged 13-15 in German high schools. They found that the program significantly increased teenagers' interest in financial matters. In addition, their financial knowledge improved, especially their ability to assess the risks related to financial assets. 23 Friedline et al. found that young people in the United States who have a savings account during adolescence and whose parents own assets are significantly more likely to have a savings account and save when they are young adults.24 Ashby, Schoon, & Webley demonstrated that saving at age 16 is linked to saving at age 34 in the United Kingdom.25 The importance of parental financial inclusion also becomes clearer. YouthSave showed that youth save more when their parents are cosignatories. 26 Friedline, Elliot, and Chowa discovered that parental ownership of a savings account for their child became a strong predictor for young adults’ savings account ownership later in life. Young adults were almost three times more likely to own accounts when their parents were saving on their behalf seven years earlier, compared to neither children nor parents having savings accounts.27 Due to minimum age restrictions, parents often play a crucial role in providing children with direct access to a financial institution. Interviews with youth in Ecuador revealed that a lack of parental support was a key factor in the decision to not open a savings account. On the other hand, the idea of having parental involvement in financial matters can also discourage youth from using financial services.28

2.3.2 Research on the Impact of Financial Inclusion for Children and Youth The body of literature dealing with methods of achieving financial inclusion and analyzing its effects on a macroeconomic level is an ever-growing one. Research has shown that financial inclusion is positively correlated with economic growth and employment and researchers by and large believe in an underlying causal effect. The important mechanisms underlying this relationship include increasingly lower transaction costs and a better distribution of capital and risk across an economy.29 Han and Melecky suggest that broader financial inclusion could lead to increased financial stability, because a broader funding base makes banks more resilient.30 A study by Martinez identified access to finance as an essential tool employed by governments to fight poverty and stimulate growth through the productive allocation of resources and the reduction of capital cost.31 A study done in Nigeria indicated a positive significant relationship between financial inclusion and economic growth. A significant relationship was also identified between financial inclusion and the economic wellbeing of the Nigerian citizens.32 However, there is still limited evidence on how financial inclusion impacts their lives and well-being on the long term. Based on its experience with the programs it runs with its partners, The MasterCard Foundation has identified three areas in which access to financial services can positively impact youth. First, reaching out to children and youth provides an opportunity to instill positive behaviors like saving and budgeting. Second, access to financial services enables asset accumulation and transaction management in a safe manner. Friedline, Elliot, and Chowa support this when concluding that policies put in place to increase asset building and early access to savings accounts may improve savings outcomes for young people, potentially providing them with the economic means to lead a more productive life.33 Third, engaging young people in financial services has the potential for secondary benefits, such as psychological, educational, and health 21

World Bank (2015) YouthSave Consortium (2015) 23 Luhrmann, Sera-Garcia & Winter (2013) 24 Friedline (2014) 25 Ashby, Schoon & Webley (2011) 26 YouthSave Consortium (2015) 27 Friedline, Elliot & Chowa (2013) 28 Freedom from Hunger & the MasterCard Foundation (2014) 29 CGAP (2014b) 30 WorldBank (2013) 31 Martinez (2011) 32 Onaolapo (2015) 33 Friedline, Elliot & Chowa (2013) 22

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effects.34 The latter point is supported by Dupas and Robinson, who found that providing individuals with simple nonformal savings opportunities could substantially increase investment in preventative health and reduce vulnerability to health shocks. Providing a safe place to keep money was sufficient to increase health savings by 66 percent. The study did not target children or youth specifically so further research on this particular target group would be interesting.35 YouthStart researchers examined effects and behavioral changes in youth in Ethiopia and Togo over the course of six months. They found that participants had more income than the control group and saved more, and more frequently through formal channels. They were more confident about their future, less stressed and happier overall.36 Additionally, findings from a study analyzing the effect of microfinance on poverty in Kenya suggest that microfinancing influenced economic status, decision-making power, and knowledge and was effective in graduating poor and middle class youth to higher living standards.37 However, the evidence from other research is not always as strong. For the YouthSave program in Ghana, non-financial impacts appear to be modest, with some patterns suggesting positive impacts on education, health, and future orientation, but these are not always statistically significant.38 Additions to the literature focus mainly on the positive impacts of financial inclusion. Like long-term impacts, negative impacts should be more explicitly addressed in future studies.

2.3.3 Developments in Financial Inclusion Policies The commitment from policymakers to advancing financial inclusion is made clear by the large number of national governments that signed the Maya Declaration and the prominent role of financial inclusion on the G20 agenda. The Maya Declaration is an initiative of the Alliance for Financial Inclusion (AFI), a global network of financial policymakers from more than 90 developing countries. It is a commitment to ‘unlock the economic and social potential of the unbanked’.39 On a national level, this has translated into the development of national strategies on financial inclusion and regulatory changes.

Developing a national strategy brings together key stakeholders and allows for a holistic view of financial inclusion, often also including financial education or building financial capabilities. While many countries have a national strategy for financial inclusion, only a few explicitly mention children and youth as a separate target group with specific needs.

Including children and youth in the national strategy ensures that the topic is a priority on the national policy agenda.

Children and youth are historically underrepresented, and it is therefore even more important that their interests and challenges are reflected in a national strategy. National authorities are encouraged to bring together the key stakeholders in a national platform. Through this platform, the national youth finance agenda and an implementation plan can be developed. Given the demographics of the target group, it is important to ensure medium- and long-term sustainability of any initiative, so that current and future generations can benefit well into the future. During the development and implementation of the national strategy, policymakers should strive to incorporate feedback from children and youth as much as possible.

Regulatory restrictions have proven to be a major challenge for financial inclusion of children and youth. A great number of respondents to CYFI network surveys listed as a main barrier in 2011 and again in 2015.40 In particular, the minimum age at which children can open and operate their own bank account and the identification documents required for this pose an issue. In Asia and sub-Saharan Africa, just under half of all children under five are not officially registered. In total, 70 percent of children in the least developed countries lack a birth certificate or registration document.41 In some regions, particular laws concerning the rights of mothers and young girls keep them from obtaining access to financial services. It can also be more difficult for women to obtain a national ID. Without identification, women are less likely to be able to open an account for or together with their child. In addition, in some countries, only the father is allowed to oversee the use of the child’s account. These challenges exist for married and divorced women, widows, and single mothers.42 There are many countries, however, that have changed regulation to overcome these hurdles with positive outcomes and these will be discussed further in section 3.3.

34

The MasterCard Foundation (2015) Dupas & Robinson (2013) 36 UNCDF (2016) 37 Omunjala & Fondo (2014) 38 YouthSave Consortium (2015) 39 AFI (2015) 40 CYFI (2011b) and CYFI (2016a) 41 YouthSave Consortium (2015) 42 World Bank (2016b) 35

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Landscape Series – Financial Inclusion

The above mentioned restrictions are often in place to protect the consumer and are part of the ‘Know Your Customer’ (KYC) regulations. Other aspects of consumer protection are product design, data protection, reasonable pricing, and dispute resolution mechanisms, which are captured in the Smart Client Protection Principles. Frameworks and principles have been developed, but assessing the extent to which financial institutions are complying with these has proven to be a challenge. The Smart Campaign, launched in 2008, enables certification of microfinance institutions. Certification is an independent, third-party evaluation to publicly recognize financial institutions that meet adequate standards of care in how they treat clients. Certification enables financial institutions to demonstrate adherence to the microfinance industry’s Client Protection Principles. 43 To date, 37 institutions, serving nearly 10 percent of the world’s microfinance clients, achieved certification and funders increasingly look for a financial institution’s commitment to the Smart Campaign principles when deciding where to invest.44 As part of the YouthStart program, and in accordance with the CYFI’s Child and Youth Friendly Banking Principles, the Client Protection Principles were adapted for young people. All ten YouthStart partners implemented these principles, but there is no data available on whether other institutions followed this example.

2.3.4 Technological Developments Supporting Financial Inclusion The increasing use of technology for financial purposes is expected to provide widespread opportunities to improve financial inclusion rates both for adults and children. In Kenya, the M-PESA mobile money service for sending and receiving money reached 80 percent of all households in the country within four years. Another study showed that texted reminders increased savings in Bolivia, Peru, and the Philippines by up to 16 percent.45 Though current mobile banking products focus more on transactions than on savings, the potential for savings should not be underestimated. One of the major challenges of offering financial services to people in developing countries is that they often live in remote locations, far away from the nearest bank branch. Children and youth, in particular, are more constrained in terms of their capacity to travel to distant banks. The mobile money model, using agents that only require a mobile phone and a network connection, can significantly increase the reach of financial institutions. Uptake of new technology is often higher for youth than for adults, and this is also the case for mobile phone and Internet usage in developing countries. The figure below illustrates this, though it should be noted that the graph only includes data on youth older than 18 years. It is also not uncommon for youth to own a SIM card whilst sharing a mobile phone with family or friends. Data shows that 30 to 50 percent of youth lend their phone to others at least once a month.46

18-29 Years

30-49 Years

Venezuela

Uganda

Turkey

Tunisia

Senegal

S.Africa

Russia

Philippines

Pakistan

Nigeria

Mexico

Malaysia

Lebanon

Jordan

Indonesia

Ghana

El Salvador

Egypt

China

Chile

Brazil

Bolivia

Argentina

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

50+ Years

Figure 5. Cell Phone Ownership by Age (2013)47

For all of the opportunities it provides, mobile banking for youth encounters difficulties similar to those of offline financial products for children and youth. The recent trend of SIM card registration becoming stricter due to national security concerns means that in many countries children below 16 or 18 years cannot register for a SIM card and that those without 43

Smart Campaign website Smart Campaign (2015), ‘Progress Report July 2015’ 45 World Bank (2016a) 46 New America Foundation (2013) 47 Pew Research Center website 44

Landscape Series – Financial Inclusion

21

official national identification are also excluded. Furthermore, offering access to financial products and services without also strengthening children’s financial literacy and capabilities, which is more likely due to the remote nature of mobile banking, increases the risk of incorrect or sporadic use of the products. In addition, concerns about how to apply Know Your Customer regulation and data privacy are particularly relevant when youth are sharing phones, for example. Finally, for low-income countries with more rudimentary banking systems, whose infrastructure is concentrated in urban areas, developing an adequate physical network to deliver digital payments to all corners of the country is a significant challenge.48

2.3.5 Financial Product Development for Children and Youth Despite the lack of extensive literature on financial products for children and youth and their unique characteristics, the idea that children go through different life stages and have different financial needs according to the life stage they are in is generally accepted. As children grow older, they pass through various phases, each with its own financial needs. The financial independence of children increases as they move from primary school into their teenage years and, eventually, earning their first income. It should be noted that the timing of these life stages differs per region and is very much dependent on cultural variables. Some of the financial milestones for children and youth can be found below in Figure 5.49

Figure 5. Financial Milestones in the Lives of Children and Youth

It is important to offer financial products that are in line with the particular phase a child is in. The products can evolve from child development accounts, where parents save for their children, to savings accounts with parental controls, to current accounts and microloans over which the child has full control once s/he reaches 18 years.

In addition to the type of product, the characteristics are also important. Market research performed in all YouthSave countries, for example, shows that youth are more excited about premiums and free giveaways (ATM cards, piggybanks) than about interest rates.50 Kast, Meier, and Pomeranz also found that higher interest rates do not significantly increase savings.51 Johnson et al. find that in the case of Nepal, cash incentives do increase monthly saving rates. They also state that the presence of a minimum deposit amount causes accounts to stay dormant. 52 The SEEP Network’s Youth and Financial Services Working Group studied the reasons for dormancy in youth savings accounts.

48

CGAP (2015) The MasterCard Corporation & CYFI (2014) 50 YouthSave Consortium (2015) 51 IZA (2012) 52 Johnson et al. (2015) 49

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Level 1 0-5 years Level 2 6-11 years Level 3 12-17 years Level 4 18+ years

Savings account Savings account by parents to support future education Savings account in name of child, with parental controls Savings account fully owned by child, parental insights Savings account fully owned by child

Current account or prepaid card

Current account in child’s name, with parental controls (optional) Current account in child’s name

(Micro) loans

Microloans available to support entrepreneurship

Figure 6. Basic Products for Children and Youth through the Different Life Stages

They recommend designing less restrictive financial products for children and youth, for example, with the added possibility of performing certain transactions for education or health expenses without parental approval. 53 Women’s World Banking studied the use of accounts at Banco ADOPEM in the Dominican Republic. The data showed that accounts opened by youth lost only 13 percent of deposits to dormancy fees, compared to 44 percent for parent-opened accounts.

This implies that the intrinsic interest and desire to begin saving at a young age impacts savings activity.54 An aspect of products that is of particular interest to the financial institutions offering them is their profitability. A number of benefits have been presented to commercial financial institutions in order to engage them in investing in financial inclusion for children and youth. First, a MasterCard Corporation analysis in Europe looked at customer lifetime value combined with the cost of acquiring a new customer. When looking at the first, young professionals of about 30 years represent the highest net present value. The cost of acquisition is very low for teens but increases rapidly with age. Taking this into consideration, the teen segment provides the highest return on investment. This is because the higher number of new teen customers outweighs the disadvantage of a lower customer lifetime value. Furthermore, customers that have banked with an institution in their teen years are more likely to stay with the bank. Research indicates that in Europe, only 10% would consider changing banks once the relationship is established. A low churn rate increases the possibilities of selling additional, more profitable products at a later stage in the customer lifecycle. 55 Second, medium to long term benefits for financial institutions include cross-selling opportunities and increased loyalty from parents. A small sample from the YouthStart program suggests that relatives of 17% of all participants started banking with the financial service provider as well.56 Finally, many banks are driving financial inclusion for children and youth as a social responsibility.

2.3.6 The Role of Non-Formal Financial Products Though this paper focuses on formal financial inclusion, it is important to note that non-formal savings products can play an important role in providing the unbanked with means to save or borrow. Examples of non-formal financial inclusion for children and youth are youth savings groups or village savings groups in which youth can also participate. These groups are often the only financial services that promote solidarity among members, provide a stepping-stone towards financial inclusion, and are available to young people living in remote, rural areas. Another advantage is that they provide a network, encouragement, advice on saving and investing, and sometimes even access to NGO-provided training.

A disadvantage is that significant sums are being accumulated that cannot be stored in a safe place and that there is a limit on the amounts that can be saved or borrowed. Furthermore, people in non-formal savings groups do not have access to the wider financial services banks can offer such as micro-insurance, electronic payments, and improved credit history.57 Eventually, saving groups can act as a bridge to formal financial services. In a number of countries, products are available to formally link non-formal savings groups to financial institutions and these examples are provided in the next chapter.58

53

The SEEP Network (2015) Women’s World Banking (2014a) 55 The MasterCard Corporation & CYFI (2014) 56 UNCDF (2013a) 57 Plan, Barclays & CARE (2016a) 58 Plan, Barclays & CARE (2016b) 54

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23

Despite their popularity, savings groups have been only partially successful in attracting young people. A survey from 2013 showed that out of 103 organizations promoting savings groups in 43 countries, only 22 percent included groups targeting children and youth and only 38 percent report young people participating in groups that were non-age specific.59 Freedom from Hunger, supported by The MasterCard Foundation, experimented with implementing different models of integrated financial services to youth, including group savings accounts and youth savings groups. They found that group-based approaches with savings at the core are effective in promoting savings and delivering both financial access and education.

Youth developed new financial skills and the youth savings group model was effective in building the financial capabilities of its participants.60 The Banking on Change consortium found that the success of the group is positively impacted when a level of homogeneity in age, life stage, and goals exists.61

2.3.7 Research Limitations and Opportunities for Further Research The previous sections show that the body of literature on financial inclusion for children and youth has grown substantially in the past five years. New studies have provided useful insights into how children and youth save, which approaches work well, and the financial product characteristics that are most attractive to youth. Financial institutions, national authorities and civil society work together to introduce new products. The potential of technology becomes clearer, but there are also still a lot of challenges. With financial inclusion as an integral part of the development agenda, it is likely that research will continue to be undertaken. Existing studies are meaningful, but have their limitations, and there are still areas where further research is required to refine the approach to financial inclusion for children and youth. Two main topics have been investigated to some extent but require more in-depth knowledge: 1. The long-term impact of financial inclusion on children and youth: a. How does providing access to formal financial products and services impact the well-being, health, and safety of youth? b. How does it affect their asset accumulation, position in the household, educational results, and livelihood?

2. The interaction between financial inclusion and financial, social, and livelihoods educations: a. How does one affect the other? b. How effective is one without the others?

Research Evidence on CYFI’s Model of Children and Youth as Economic Citizens, also part of the CYFI Landscape Series, explores these research questions in more detail.

2.4 Opportunities and Challenges for Increasing Financial Inclusion In the past years, significant progress has been made in the general area of financial inclusion. Looking forward, several opportunities and challenges to increase financial inclusion for children and youth have become clear. One of the largest challenges remains how best to reach the unbanked. A growing number of people are getting access to formal financial services, but the majority of them are still adults living in urban areas. Additional effort is required to also include more specific sub-groups such as children and youth in general, girls, orphans, and vulnerable children and young people living in remote, rural areas. The cost of including these groups is a central barrier, but, as explained above, digital finance and the use of agents can help in bringing down these costs. Another opportunity is linking non-formal savings groups to formal financial institutions. Barclays, Plan International, and CARE recently published the results of their ‘Banking on Change program’, which also includes the topic of linkage to formal finance. They found that 95 formal institutions across 27 countries offer savings group products. However, the bulk of these are concentrated in sub-Saharan Africa where demand is highest but limits the overall global impact.62 Though many countries have made progress in both the areas of financial inclusion and financial education, the areas remain fairly separate. National strategies are still being developed and implemented and often focus on these topics individually. However, to achieve a state in which children and youth are fully capable and empowered to function as economic citizens, it is important to note that financial inclusion, in and of itself, is only part of the solution. Without complementary financial, social, and livelihoods education, whether provided by schools or banks, and the appropriate consumer protection framework, financial inclusion can lead to account dormancy and exploitation.

59

Plan, Barclays & CARE (2016a) Freedom from Hunger & the MasterCard Foundation (2014) 61 Plan, Barclays & CARE (2016a) 62 Plan, Barclays & CARE (2016b) 60

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Landscape Series – Financial Inclusion

Regulatory restrictions also remain a challenge. Financial institutions have long cited regulation as one of the main barriers to youth financial inclusion efforts.63 Many countries have not yet lowered the age at which children can open a bank account, thereby excluding a large part of the population solely based on their age. Strict identification requirements are important to prevent fraud and theft, but also lower the accessibility of financial products for children and youth who, more often than adults, do not possess official identification documents. If they are allowed to provide alternative documentation, with support from parents, schools, NGOs, religious organizations, or local village authorities, many more children could be included.

The social business case for financial inclusion of children and youth is fairly straightforward, although the long term benefits should be studied further. The financial business case is more challenging. CGAP’s business case framework helps financial service providers with mapping the market, institutional and client segment levers influencing profitability. Based on the concept of ‘customer lifetime value’, engaging customers at a younger age can prove beneficial to financial institutions. This can be because of cross-selling possibilities, the opportunities to gain market share, or to solidify the brand of the financial institution with future customers.64 However, the cost of offering savings products to children is too often still higher than the revenue this generates. YouthStart research shows that the payback time for banks ranges from three to five years, and this often includes a one-time grant.65 Banks can influence this time, though, by designing their products to be financially sustainable. Making use of mobile and/or agent banking might help in reducing the operational costs, but the initial investment could be steep and the use by children is also still limited. Donors play a key role here by supporting the initial investment to include children and youth, whether through standard accounts or mobile products. Nevertheless, financial institutions need to be supported in the design of youth offerings that can be sustained long after donor funds and/or programs have ended.

Given the controversial nature of the financial business case for financial service providers, the push to expand the number of Child and Youth Friendly banking products will continue to be a challenge. Resistance from the banking sector towards additional regulation, or Child and Youth Friendly certification, certainly does not make this effort any easier. CYFI will be shifting its focus slightly in its second strategic phase to offer a less rigid and demanding Child and Youth Friendly product endorsement. CYFI will award this endorsement to a particular financial product that meets a satisfactory number of criteria aligned with the Child and Youth Friendly banking principles. The success of this initiative will depend on individual financial service providers seeing the value of the CYFI endorsement to their future youth related operations and client acquisition. Governments and civil society organizations within the Child and Youth Finance Movement will also have an important role to play in encouraging financial service providers to pursue this endorsement, particularly when partnering on integrated financial and educational programming for young people.

Key challenges     

Reach the unbanked Integrate financial inclusion and economic citizenship education Regulatory barriers Commercial business case for Child and Youth Friendly banking products Continued push for a great number of financial service providers to go the extra mile in offering integrated financial and educational products for children

This chapter provided an overview of the developments in the landscape of financial inclusion for children and youth in the past five years. Key concepts and perceptions have been further developed or changed fundamentally. Research has confirmed existing ideas and gave new insights. National authorities have implemented policies that take away key barriers to financial inclusion for children and youth. Furthermore, products have been improved based on results from practical research. Many questions that existed at the beginning of the Child and Youth Finance Movement have been answered but subsequently replaced by new suggestions for further research. The next chapter focuses on key players and initiatives that are working on resolving these challenges.

63

CYFI (2016a) CGAP (2013) 65 UNCDF (2013a) 64

Landscape Series – Financial Inclusion

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3. Current Financial Inclusion Landscape

3. Current Financial Inclusion Landscape This chapter looks at the current financial inclusion landscape. It intends to quantify the situation by introducing a number of statistics. Unfortunately, the availability of reliable statistics is still limited. The key sections of this chapter introduce the main players in the area of financial inclusion for children and youth and showcase a number of initiatives that can serve as leading practices.

3.1 Statistics on Financial Inclusion The Global Findex database was launched by the World Bank in 2011 and provides comparable indicators showing how people around the world save, borrow, and make payments. Account ownership is an important indicator and is defined as ‘having an account either at a financial institution or through a mobile money provider.’ This includes banks, credit unions, microfinance institutions, and mobile phone-based services for payments and sending and receiving money. The latter group was added in 2014 to reflect technological developments in the financial sector. Its use for understanding the status of financial inclusion for children and youth is limited, as most indicators are only reported for adults. However, the World Bank recognizes that a youth gap exists, meaning that young adults (ages 15-24) are between 15-50% less likely than older adults (aged 25 and above) to have an account at a formal financial institution. This applies across all regions, but the relative gap is smallest in high-income countries, East Asia and the Pacific (15%). The gap is largest in the Middle East, where young adults are less than half as likely to have an account as older adults. Except for some minor regional changes, the overall gap in account ownership between adults and youth did not change between 2011 and 2014.66

Figure 7. Percentage of Youth and Adults with an Account at a Formal Financial Institution (2014)67

In 2015 Child and Youth Finance International collected data from thirty financial institutions on the availability of products for children and youth and the key characteristics. The results show that 83 percent of respondents offer banking products for youth under 18, compared to 70 percent in 2011. From these, 86 percent of financial institutions complement the account with an educational component, which supports the integrated model of financial inclusion and financial education. The majority of financial institutions offer financial products to the older age segments, but the results indicate that the younger age segments are also seen as a valuable segment to target.

Age segments All age segments 15-18 years 10-14 years 10 years and younger

Percentage of financial institutions offering products 18% 50% 40% 30%

Table 2. Percentage of Financial Institutions Offering Products to Children and Youth (2015)68

66

World Bank (2015) Idem 68 CYFI (2015c) 67

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It should be noted that the respondents are part of the CYFI network, and as such have already expressed an interest in financial inclusion for children and youth, which means that the results may not be representative of the financial sector as a whole. However, the pool of respondents has diversified over the years, which indicates that the interest for the topic of youth finance has increased.69 Through its Strategy Consultation Survey, CYFI collected data from 320 respondents within its network about the main challenges in reaching full financial inclusion and Economic Citizenship Education for children and youth. These respondents were fairly equally distributed across national authorities, civil society, and the financial sector. Lack of resources is by far the most cited reason, which could be related to the fact that respondents also mention financial inclusion and education not being a priority. Limited knowledge or a lack of strong relations with other relevant stakeholders are also important challenges. Between regions, there are also differences. In Europe and North America, overloaded agendas and a lack of priority seem to hamper progress. Respondents from Africa cited limited resources and expertise, combined with a lack of strong relationships with the relevant stakeholders. In Latin America, the lack of tangible results and difficulties to scale initiatives were mentioned as key challenges. Finally, in Asian countries, the need for both resources and knowledge was stressed.70

Figure 8. Key Challenges to Achieve Full Financial Inclusion and ECE (2016, n=320)71

The European Microfinance Platform gathered data from a number of outreaches to assess the scalability of youth financial services offered by financial institutions in various countries. Most interventions are part of the YouthStart program. The table includes outreach figures for all youth clients, even when the products were not necessarily tied to a specific intervention program.72

69

Idem CYFI (2016a) 71 CYFI Secretariat (2016) 72 European Microfinance Platform (2015) 70

Landscape Series – Financial Inclusion

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Country

Financial service provider

Burkina Faso Dominican Republic DRC Ecuador Ecuador Ethiopia Ethiopia Malawi Rwanda Senegal Togo Uganda Uganda Yemen

FCPB ADOPEM FINCA Cooprogreso COAC San Jose ACSI PEACE OIBM Umutanguha PAMECAS FUCEC Finance Trust Bank Finca Al-Amal

Country youth population (age 10-24)73 33% 28% 33% 28% 28% 35% 35% 33% 33% 32% 32% 34% 34% 35%

Number of youth savings accounts

Youth savings as % of all accounts

17,283 35,094 18,342 1,828 2,788 252,181 21,273 26,620 28,536 15,529 47,966 26,947 14,813 23,848

1.7% 2.6% 5.5% 2.1% 6.7% 10% 43.7% 4.9% 32% 2.7% 8% 7.6% 6.5% 25.6%

Table 3. Estimated Scale of Youth Financial Services (2014)74

From the numbers, it becomes clear that though the percentage of youth in most countries is about one third, the percentage of youth savings accounts as a percentage of the total number of savings accounts does not reach 10 percent in most cases. Assuming that this distribution is similar across financial institutions in the country, this is an indication that a large part of the youth population remains financially excluded. Notable exceptions are Ethiopia, Rwanda, and Yemen.

The results in Ethiopia are particularly interesting as the financial institution reached significantly more children and youth in absolute numbers compared to other outreaches. There are a number of factors that influence this success, like market conditions, regulatory environment, institutional size, and commitment. Section 3.3 on ‘Key Initiatives’ below goes into more detail on these programs. To conclude, more statistical information is available now, but its reach remains limited.

Official statistics like the Global Findex and the FinScope survey mainly track financial inclusion for (young) adults only.75 There is a need to further develop existing data collections to include younger children.

3.2 Key Players In this section, the role of key players in the field of financial inclusion for children and youth is highlighted. This overview is by no means exhaustive but rather intends to highlight organizations that have had a significant impact in the field.

Criteria for selection include:    

A specific focus on financial inclusion for children and youth The role in funding, coordinating, researching or implementing financial inclusion efforts The impact in terms of children reached, number of people mobilized and amount invested The contribution to the literature on financial inclusion for children and youth, including frameworks and principles

3.2.1 Funders Any initiative to increase financial inclusion for children and youth requires funds to execute. Two main funders in this area have been The MasterCard Foundation and UNCDF. Both organizations have shown commitment to children and youth as a particular target group through a number of initiatives, though their work does not focus on children and youth exclusively. The MasterCard Foundation was the driving force behind both YouthSave and YouthStart, with the UNCDF as the main partner in the latter as well. The Bill and Melinda Gates Foundation, through its Financial Services for the Poor program, support the development of innovative savings products worldwide.76 The Nike Foundation focuses specifically

73

UNFPA (2014) European Microfinance Platform (2015) 75 FinScope website 76 The Bill and Melinda Gates Foundation website 74

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on promoting the economic empowerment of girls through financial education, business training, and access to savings and loans.77

3.2.2 Coordinators A number of organizations are dedicated to coordinating advocacy and implementation efforts for financial inclusion for children and youth. Of these, CYFI focuses particularly on children and youth, taking on the role of networker, advisor, innovator, and thought leader to support national governments, central banks, financial institutions, and civil society in promoting economic citizenship. It introduced Global Money Week in 2012, an annual worldwide celebration to introduce children to the concept of money, financial services, and entrepreneurship, which reached over 7 million children in 131 countries in 2016. Through its YE! Community, which is a gateway to coaching, relevant information and peer learning, Child and Youth Finance International supports 6,000 young entrepreneurs.78 CYFI also works with multiple stakeholders in at least five countries to implement SchoolBank, a concept that brings together banks and schools in a joint effort to provide financial access and education to children and youth.

Making Cents International is an organization based in the United States that focuses on furthering economic opportunities for children and youth, as well as other vulnerable groups like women and smallholder farmers. It provides consulting services and technical assistance to a wide range of organizations to support them in improving financial services, workforce readiness and enterprise development programs for young people. The work of Making Cents’ results in ‘available, demand-driven financial services for under-served populations’ and the availability of a financial education curriculum for the unbanked, which can be tailored to local needs. 79 They also hold an annual Youth Economic Opportunities Summit that brings together youth development practitioners from around the world to share best practices in workforce development, enterprise development, financial inclusion, gender mainstreaming, technological innovation and Monitoring and Evaluation.80 Other organizations like the Alliance for Financial Inclusion (AFI) and the Global Partnership for Financial Inclusion (GPFI) bring together nation states, and other governmental entities like central banks, to coordinate policy and regulatory changes that can enable financial inclusion. AFI currently has 117 institutions from 93 countries that are members.81 AFI supports its member states through six working groups focusing on financial inclusion, consumer empowerment, digital financial services, data collection, global standards, and finance for small and medium enterprises (SME’s). Seventy-four member states have signed the Maya Declaration, committing to developing and implementing a financial inclusion strategy and a consumer protection framework.82 GPFI serves as the main implementing mechanism for the G20 Action Plan, which focuses on SME finance, regulation and standard setting bodies, consumer protection and financial literacy, and markets and payments systems. Other GPFI activities include supporting countries by implementing the G20 Principles for Innovative Financial Inclusion, strengthening data for measuring financial inclusion, and developing methodologies for countries wishing to set targets.83 Both AFI and GPFI mainly target the adult population, but given their impact and reach, they have served as important platforms for CYFI to advocate financial inclusion for children and youth.

Additionally, Financial Inclusion 2020 connects private and public initiatives towards the common goal of achieving full financial inclusion by 2020. It is supported by private sector organizations like MasterCard, Citi Bank and private foundations like the Bill & Melinda Gates Foundation. A key contribution is the Smart Campaign, which endorses microfinance institutions for their consumer protection frameworks. 84 Finally, Women’s World Banking works with financial institutions to show the importance of investing in women and girls as strategic client segments. Through its global network, Women’s World Banking gave over 640,000 women access to financial products. The organization has conducted 18 studies to identify women’s financial needs, including studies looking at how to serve youth clients.85 In 2014, Women’s World Banking published a detailed Youth Financial Product Development guide to assist deposit-taking institutions in the design, implementation, and evaluation of savings programs designed for low-income youth.86

77

Girl Effect (2014) CYFI Secretariat (2016) 79 Making Cents website 80 Making Cents International website 81 AFI website 82 AFI website 83 GPFI website 84 Financial Inclusion 2020 website 85 Women’s World Banking website 86 Women’s World Banking (2014b) 78

Landscape Series – Financial Inclusion

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3.2.3 Researchers A great number of organizations have invested in research on financial inclusion in recent years. Of these, CYFI, The MasterCard Foundation, Barclays, Making Cents International, CARE, Plan International, New America, The Center for Financial Inclusion at Accion, Citi Foundation, MEDA, The SEEP Network, and others have looked at the approach for and impact of financial inclusion for children and youth through initiatives such as YouthStart, YouthSave, YouthInvest, Banking on Change, and Banking the Next Generation. Other organizations contribute to the wider body of literature on financial inclusion in general, such as the Consultative Group to Assist the Poor (CGAP) and UNCDF.

3.2.4 Implementers As financial inclusion requires more than a change in policy, the role of parties implementing the change on the ground is crucial. At the center of this is a wide variety of financial institutions, often led by national central banks. Many commercial (retail) banks have developed financial products for children and youth as part of their standard offering. Making up the traditional financial sector, they have a responsibility in making their products and services accessible to everyone. The next section provides more information on individual financial institutions. Microfinance institutions have a natural tendency towards providing financial services to more vulnerable groups and therefore also play a large role in providing youth financial services. Some of the FSPs in the YouthStart program are microfinance institutions, but also those involved in interventions from organizations such as BRAC and FINCA. Credit unions and cooperatives play a similar role and they often work with funders and coordinators to implement financial inclusion on the ground. An example is the work of the World Council of Credit Unions in Colombia and Rwanda.87 Less formal and more on a local scale, Village Savings and Loans Associations (VSLAs) bring transparency, structure, and democracy to even less formal savings groups.88 Many NGO’s support these financial institutions in projects related to financial inclusion for children and youth, often combining project implementation with impact assessment. A non-exhaustive list of examples includes Save the Children, BRAC, Freedom from Hunger, MEDA and Women’s World Banking. Annex D contains a table providing a more detailed overview of the key players mentioned above.

All organizations mentioned above work together to increase financial inclusion for children and youth, but also to study its impact. Most of them do not look at financial inclusion in isolation, but often combine it with at least some form of financial education, sometimes even complemented with social or livelihoods education.

3.3 Key Initiatives In the past years, a number of initiatives have contributed greatly to increasing the number of children and youth that have been financially included and empowered through a combination of financial and educational services. This section highlights some of these initiatives in the areas of policies, products and programs. Like the key players, this overview is by no means exhaustive, but intends to offer practical and proven implementation options for policymakers and practitioners.

The examples have been selected based on the following criteria:    

Initiatives that have proven to work and are sustainable in the long term Initial impact and potential to scale-up on a national or even regional level Regulation, products or programs that adhere to existing principles and frameworks The extent to which the impact has been documented and the quality of this documentation.

3.3.1 Policies The previous chapter already listed some countries that developed national strategies and made regulatory changes that lowered the barriers for children and youth to open a bank account. This section provides additional information on how these regulatory changes came about and explores the various implementation options.

3.3.1.1 Include children and youth in the national financial strategy for financial inclusion During the development and implementation of the national strategy, policymakers should strive to incorporate feedback from children and youth as much as possible. Until today, only a handful of countries have singled out children and youth as a specific target group within their national strategies. Peru’s financial inclusion strategy focuses on access, use, and quality of financial services. Financial education and consumer protection are recognized as supporting pillars. In its strategy, Peru recognizes young people between 18 and 25 as a specifically vulnerable group with its own challenges 87 88

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World Council of Credit Unions website Village Savings and Loans Associations website

Landscape Series – Financial Inclusion

related to financial inclusion.89 In its financial inclusion strategy, Nigeria states that ‘financial inclusion is achieved when adult Nigerians have easy access to a broad range of formal financial services that meet their needs at an affordable cost’.

Within that same strategy, the Central Bank of Nigeria and other stakeholders aim to financially include 50 percent of the four million new adults each year. To do this, they are working on developing and implementing a framework for child and youth finance and implementing children and youth financial literacy initiatives in educational institutions.90 3.3.1.2 Lower the minimum age for opening a bank account In most countries, children cannot open or operate a bank account independently until they become of legal age, which is often at the age of 18. Given the flexible living arrangements of many children worldwide, they are at a serious disadvantage when they need an adult, often a parent, present to open and manage their savings. Thus, lowering the minimum age enables a large part of the youth population to become included. In the majority of the examples available, it is the national central bank that is leading the initiative. Sometimes, the change needs to be incorporated in the law and pass through the legislative branch. Financial institutions become involved once the regulation has changed and they are able to offer products that comply with the new regulations. Although it is important to still have the parents actively involved in managing the account, the minimum age to open and manage a bank account independently can be as low as seven years old. For more information on this, refer to figure 3 in Section 2.3.5. The age chosen differs per country, and sometimes even between sexes.

In Uruguay, for example, the minimum age has been 12 and 14 for girls and boys, respectively, since 2012. These minimums are meant to account for the difference in mental development. Elsewhere, for example in Colombia, children are allowed to open and own an account independently at the age of seven, without the need of a cosignatory. In Ethiopia, the age has been lowered to 14, but only for youth that can demonstrate that they are employed.91 In the Philippines, since 2012 youth over 7 years can open and manage their own savings account using only a school ID as proof of identity. This was agreed upon by a broad group of stakeholders, including the Central Bank, the Bank Marketing Association, banks, and the Anti-Money Laundering Council. In addition, the ‘Kiddie Account Program’, which was launched in 2009, aimed at promoting the habit of saving among school children, resulted in more than 600.000 new savings accounts for children by 2015.92 The Reserve Bank of India (RBI) targets various groups, including children in school and college, with programs that integrate financial access and financial literacy. In 2014, the RBI implemented new regulation that lowered the age for opening and operating a savings account for children independently to 10 years. Banks can offer additional services like online banking and debit cards, but are to ensure that minor accounts cannot be overdrawn and always remain in credit.93 The Bank of Mongolia (BoM) increased the national rate of financial inclusion from 78 percent in 2011 to 92 percent in 2014, partially by lowering the minimum age to open bank accounts to 14 years and by easing regulation to having child accounts at birth.94 3.3.1.3 Allow alternative proof of identification To open a bank account, one needs to provide proof of identification. This is important for banks with regards to ‘Know Your Customer’ (KYC) regulation, which is aimed at preventing fraud and theft. However, this is an insurmountable barrier for all children that will only receive an official identification document at the age of 18 or are not registered at all. When banks allow for alternative forms of customer identification, they can still take precautions to prevent fraud and theft.

When children cannot present a birth certificate or national ID, they are often able to provide at least one of the following:    

Birth notification Baptism card School registration certificate Letter from  Municipal or provincial administration  School  Church authority  Village chief

89

Multisectoral Commission for Financial Inclusion (2015) Central Bank of Nigeria (2012) 91 The MasterCard Foundation & New America Foundation (2014) 92 Bangko Sentral ng Pilipinas (2015) 93 The MasterCard Foundation & New America Foundation (2014) 94 World Bank (2015) 90

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In addition, banks can take photographs upon opening the account, which serve as visual identification. In countries that already allow innovative ways of identification, this is often initiated by a financial institution but endorsed by the central bank. It is important that regulatory and supervisory bodies are aware and accept this as being compliant with KYC regulation. Ideally, the central bank issues a directive, requesting all financial institutions to adjust their identification requirements.

In Uganda, parents are allowed to open accounts in their children’s name by providing a letter of reference or a school ID as alternative identification. In India, to widen the range of people that can co-sign a youth account, several nongovernmental organizations allow youth to open accounts in the name of both the youth and the NGO. Almost half of all YouthSave participants in Ghana, Nepal and Kenya had opened an account with a cosignatory that was not a parent, but a teacher or older sibling, for example. The ‘Kindergarten to College’ program in San Francisco in the United States provides the automatic opening of a savings account on behalf of all children attending public school.95

3.3.2 Products Countless banks around the world are offering financial products and services to children and youth nowadays, and the Child and Youth Finance Movement has worked collectively to expand the reach of these quality services. The selection in this section is by no means exhaustive but lists some proven concepts and innovative examples that have evolved in recent years. Though progress has been substantial, a lot of products are still not fully adhering to the Child and Youth Friendly banking principles. The banking principles focus on availability, accessibility, and control for children and youth over their accounts, thereby looking at opening requirements, benefits, and costs. They also recommend including a component of Economic Citizenship Education, or at least financial education, either through workshops, web portals or applications available to young account holders. Based on information shared by financial institutions on websites, or through CYFI surveys and network publications, a number of banks and their youth products have been assessed on some of the key principles such as minimum age to open and independently operate an account, initial deposit and the presence of an educational component. A total of nine characteristics were scored and products were only scored if information was available for at least six out of nine characteristics. Characteristics are scored on a scale from 0 to 3, which means that a maximum of 27 points can be achieved. See figure 9 for the results.

Most of the products score slightly below average, with some outliers above and below. In many countries, financial products are available for children of all ages. However, a large number of these accounts can only be opened when accompanied by a guardian and the age. Furthermore, the age at which children can independently operate their bank account is often still the age of majority. Most of the products mentioned above have been around for quite some time but have not changed much since they were first offered.96 A table with a list of the institutions assessed is available in Annex D. A number of products deserve a separate mention. In the Netherlands, ING’s Jongerenrekening is a good example of a bank that has had a child-friendly banking product for a long time. Costs are low, the account is in the child’s name and the child can operate the account independently, using a debit card, for example. The Fame Game is an application to teach children how to manage their money. It was developed together with youth and has been played by more than 30,000 children.97 In Yemen, the Al-Amal Microfinance Bank already had a savings account for youth older than 18. Recently, the bank lowered the age limit and the account can now be opened by children of all ages, although those below 18 still have to be accompanied by a guardian. The number of savers increased from less than 5,000 in 2009 to 93,000 in 2014. This shows that even in a country affected by conflict and poverty, children and youth can and do save when they get the opportunity. In addition to the financial product, Al-Amal established a Foundation for Training and Entrepreneurship, called REYADAH. REYADAH provides training and development courses to young people with technical, administrative and vocational skills to help them meet the demands of the labor market. The program includes financial literacy, business plan development, and enterprise development. 98 Through these trainings, Al-Amal has raised the financial awareness of approximately 75,000 students across Yemen.99 In Ethiopia, the Amhara Credit and Savings Institute was one of the most successful participants of the UNCDF YouthStart program. Reaching more than 200,000 children, it is proof of the importance of a more conducive regulatory environment and an established national footprint. Ethiopia has implemented

95

The MasterCard Foundation & New America Foundation (2014) CYFI Secretariat (2016) 97 ING website 98 European Microfinance Platform (2015) and Al-Amal Bank website 99 CYFI (2015a) 96

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a national financial inclusion strategy with a focus on youth and it also runs an extensive financial literacy program.

Furthermore, lowering the age at which children can independently own and open an account was also crucial. 100 Australia’s Commonwealth Bank has encouraged children to develop a habit of saving regularly through their School Banking program for more than 80 years now. Over 1.4 million children under the age of 18 have a YouthSaver account that is low cost. In addition, the bank provides various educational initiatives like SmartStart to increase financial literacy.

However, it should be noted that the YouthSaver account can only be opened and operated independently by children as of 16 years of age.101

Figure 9. Total Score (Max=27) for Child Friendliness of a Banking Product

100 101

European Microfinance Platform (2015) CYFI (2014b)

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Youth & Technology The increasing opportunities that digital technologies can offer is already impacting financial product design and delivery channels. Banks use web portals and mobile applications to enable account management and parental control for children’s accounts. In Poland, the PKO Junior account has an application specifically for parents embedded in the iPKO internet banking service. Digital solutions are also used to complement financial products with financial education. Banks in Dubai, the Netherlands and Mongolia all have developed websites with games and informative films, which teach children how to save money and use it well. Though still largely confined to (East) Africa, mobile money solutions have taken the market by storm.

In Kenya, M-SHWARI is a combined savings-and-loan product offered by the Commercial Bank of Africa operating on Safaricom’s M-PESA mobile money platform. SIM registration requirements still limit the use by children and youth, but it has the potential to financially include youngsters in a cost-effective manner. In India, Togo and Colombia, mobile services are used to link non-formal savings groups to financial institutions.

For example, mobile wallet solutions that require a PIN from two members of the group for transactions do not even require a smart phone.

3.3.3 Programs In the past five years, a number of programs implemented by public-private partnerships managed both to include a large number of children and to provide relevant information on how to approach financial inclusion for children and youth.

Some of these programs can be replicated or scaled, while others serve as an example in terms of budgeting and research.

3.3.3.1 School Banking School banking combines financial inclusion with financial education and is a promising concept for fostering economic citizenship for children and youth. The basic concept unites schools and banks to guide children in opening a bank account, saving and using their money. There are three general operating models:

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Figure 9. SchoolBank Operating Models

In the first model, schools are the contact points for children to open and manage their account, and the schools also provide financial education. In Thailand, the government savings bank implemented this model, with children running a model bank in their schools. As of 2012, 1.3 million accounts have been opened and more than 14 million US dollar has been saved.102 A similar model is applied by HSBC in the United Kingdom, where children run their own bank within the school.103 In the second model, banks offer the financial products, but schools offer transaction support and financial education. An example is the Savings Make Sense School Banking program that the Country Bank in the United States runs in elementary schools in Massachusetts. Schools have designated banking booth to serve as a banking branch, but children can also make deposits at any bank branch.104 In the third model, schools act as an intermediary between banks and the children with the banks offering the financial products and transaction support while the schools provide financial education. This model has most widely been applied in the past years. In Bangladesh, the central bank worked with 52 out of the 56 financial institutions in the country to develop and introduce saving instruments for school-going children. Since 2010, 900,000 accounts have been opened.105 In India, the SchoolBank Champs program has local bank branches adopting a school in its vicinity where they offer financial services. CYFI and Mejlol provided educational material and trained teachers and bank employees. Since 2014, the program has involved 41 banks and over 23,000 schools. 106 In the Philippines, the central bank partnered with 12 banks to offer Child and Youth Friendly banking products, while also adding financial education to the national curriculum from grade one to six. Since 2009, more than 600,000 accounts have been opened. The table below provides a, non-exhaustive, overview of school banking projects around the world and the operating model they have chosen.

Operating model 1.

2.

School Intermediary as Proxy Banking

3.

Direct Banking

Country

Project Name

Stakeholders

Result

Australia Bangladesh India

School Bank School Banking SchoolBank Champs

270,000 (2016) 904,652 accounts (2015) 23,607 schools (2016)

√ √

Mexico Philippines

SchoolBank Banking on Your Future: Kiddie Savers Program School Banking Unit School-based Banking Project SmartMoney SchoolBank SchoolBank Saving Makes Sense

Commonwealth Bank Bangladesh Bank IBA, Prime Minister’s Office, MoF, CYFI Bansefi Bangko Sentral ng Pilipinas

37,000 children (2015) 626,691 accounts (2015)

√

Hatton National Bank Government Savings Bank SmartMoney

168 School Banking Units 1,333,571 accounts (2012) n/a

√

HSBC Country Bank

n/a 29 schools in Massachusetts

√

Sri Lanka Thailand Uganda UK US

√

√

√ √

√

Table 4. Overview of SchoolBank Projects

102

Government Savings Bank Thailand, presentation at CYFI Regional Meeting for Asia & the Pacific, 4 December 2012 HSBC website 104 Country Bank website 105 Bangladesh Bank (2015) School Banking presentation for CYFI Awards 2015 106 SchoolBank Champs website 103

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The table shows that most school banking projects opt for either setting up a bank in school that is run by students or for a full introduction to financial services through direct banking with the financial institutions proving both initial and transaction support. Two programs in the US do have a mixture of support provided by the bank when opening the accounts and a place at school to carry out transactions combined with the option to carry out these transactions at the bank branch itself.107 Unfortunately, impact assessments have been limited for school bank projects. It can be assumed that the general impacts of financial inclusion and education also apply here, but further research on the impact of these programs is required. Child and Youth Finance International is planning to start at least five school banking projects in 2016, including thorough monitoring and evaluation.

3.3.3.2 YouthStart UNCDF, in partnership with The MasterCard Foundation, launched YouthStart in 2010, to contribute to achieving the Millennium Development Goals through promoting financial inclusion for youth. The target was to reach 200,000 new youth clients aged 12 to 24 in sub-Saharan Africa with saving and loan products by 2014, at least 50 percent of them being young girls or women. Supporting ten financial institutions in eight countries with grants and technical assistance, several financial products and non-financial services were designed, developed and rolled out. By the end of 2015, YouthStart partners had over 612,000 active clients. This is more than triple its original targets. The table below shows the targets and actual outreach numbers for the financial institutions.

Country

Financial service provider

Burkina Faso DRC Ethiopia Ethiopia Malawi Rwanda Senegal Togo Uganda Uganda

FCPB FINCA ACSI PEACE OIBM Umutanguha PAMECAS FUCEC Finance Trust Bank Finca

Agreed minimum target 15,494 15,649 117,813 18,230 24,902 12,603 15,956 34,950 20,619 12,270

Achieved as of Q4 2015 27,267 25,818 331,040 35,440 36,210 46,584 24,038 46,125 30,460 21,602

Table 5. Number of Youth Reached by YouthStart Partners108

Throughout the program, 49 percent of those opening accounts were female clients. The amount saved was $13 million USD and the average savings balance was $28 USD per youth. Furthermore, the program had a sustainable impact. For two out of ten financial service providers, the products were financially sustainable by the end of the program. For nine out of the ten, the investment in youth has become a permanent strategy and will be financed with internal resources at the end of the project.109 ACSI in Ethiopia deserves a separate mention because they reached the largest number of youth by far.

To a large extent, this can be attributed to the contributive regulatory environment in the country, enabling such a large uptake. The national footprint that ACSI had already established in the country was also important. Ethiopia has implemented a financial inclusion strategy with a focus on youth, along with a financial education program, lowering the minimum age for independently opening an account to 14 for working youth. A similar situation applies to Rwanda, where the Financial Sector Development Programme increased the number of financial service providers and the availability of innovative services. It also includes a detailed plan for financial education. Lowering the minimum age to 16 adds to this conducive environment and the fact that the Rwandan financial sector is highly competitive supports the commercial business case to focus on youth clients.110 All in all, the YouthStart intervention shows that financial and technical support can stimulate financial institutions to offer financial products for children and youth. These services are cost neutral at the very least and can reach a significant scale.

107

SEFCU website and Country Bank website European Microfinance Platform (2015) and update from UNCDF 109 Microfinanza (2015) 110 European Microfinance Platform (2015) 108

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YouthStart Evaluation Recommendations Financial Services  Ensure that products are affordable, accessible and relevant to the needs of young people  Ensure buy-in by clearly defining roles and responsibilities  Focus on both account uptake and account usage  Youth are able to repay their loans, but need more guidance than savers Financial Education  Ensure a strong linkage between financial and non-financial services  Adopt a “critical minimum” approach with multiple short and targeted sessions  Using minimal materials with a focus on key messages  Delivery model must reflect the context in which the FSP operates and respond to the needs and availability of the youth  Partnering with youth serving organizations and schools is successful because it can reach hard to reach youth like young women and out-of-school youth Source: UNCDF (2015a)

3.3.3.3 YouthSave YouthSave, initiated in 2010 by The MasterCard Foundation, Save the Children, Washington University, New America, and CGAP, investigated the role savings accounts can play in youth development and financial inclusion. The consortium worked with local institutions in Colombia, Ghana, Kenya and Nepal to design, develop and implement tailored, sustainable savings products. Between 2010 and 2015, over 130,000 children between 12 and 18 years old opened savings accounts.

44,000 youth received classroom financial education and data was collected on 70,000 account holders to understand their saving habits. In addition, 6,000 youth in Ghana were the subject of a study assessing the impact on their well-being. The YouthSave program is an example of an intervention combined with rigorous research. While YouthStart focused more on financial service providers and the products they provide, YouthSave focused on the children, understanding how they would like to be financially included and what works best for their social and economic needs.111

YouthSave Key Findings  





Starting at a younger age matters and makes a difference Multiple stakeholders (ministries, banks, NGO’s, schools, etc.) should collaborate to identify the most common barriers youths face in regards to economic empowerment  Proof of identity  Account control Policies must take into account certain social, economic, gender, and legal vulnerability  The fact that only 1.6% of YouthSave participants represent out-of-school youths indicate that marketing and target strategies should be adjusted Greater success was seen when there was family involvement, such as parents cosigning or being enthusiastic  When parental cosigning was not an option, similar results were seen when a trusted adult filled the role

Source: YouthSave Consortium (2015)

111

YouthSave Consortium (2015)

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3.3.3.4 Banking on Change The Banking on Change program, led by Barclays, CARE International UK, and Plan UK, was launched in 2009 and aimed to improve the quality of life of the world’s poorest people by promoting a savings-led approach to microfinance. The first phase ran from 2009 until 2012 and was focused on savings groups in general. The second phase was specifically aimed at youth by supporting them in setting up non-formal savings groups and by providing financial literacy, employment skills, and enterprise training. 112 As of 2016, the program has reached more than 750,000 people with non-formal financial services and financial education, 37,000 non-formal savings grouped were formed and 5,000 savings groups, with 125,000 participants, have been linked to formal bank accounts. In total 11,725 youth savings groups with over 245,000 members have been formed, of which 132,000 participants are younger than 25 years old.113 The program revealed a number of risks related to non-formal savings groups— risks that are sometimes exacerbated in the case of younger participants. First, governance can be poor, as there is limited oversight. Second, financial inexperience can lead to people taking out loans, which they are unable to repay, before training modules on financial management are concluded. This can be countered by prohibiting borrowing until the financial education has been completed. Other risks are pressure from family members to take out loans and gender-based violence as a result of women’s increased empowerment.114 The consortium also looks at linking mature non-formal savings groups to formal financial institutions, with the security of deposits being a primary concern. Linkage allows savings groups to store their money safely, especially in cases where substantial amounts are not safe if kept at home. Knowing this, members tend to save more and can also receive larger loans. When individuals are linked to a formal institution through their savings group, they are more likely to be financially included as an individual as well. Currently, 95 formal institutions across 27 countries provide a total of 106 active savings group products. The majority of products are being offered in Sub-Saharan Africa, which is also the region where savings group are most popular. Retail banks and about 27% by microfinance institutions and government and development banks offer most products. It seems to be mainly local and national banks that are attracted to the market for savings group products, though further research needs to show why this is the case. Only 12 products have a mobile money component, which also indicates room for improvement.115 It would be interesting to track this development more closely and study its impact on economic and social well-being, whether it also influences individual financial inclusion and how financial, social, and livelihoods education influences the success rate of youth saving group linkage.

3.3.4 Specific target groups Children and youth are already a separate target group for financial inclusion, but it is by no means homogenous. Younger and older youth, girls and boys, in and out of school children, each has their own particular social and economic needs. It is important to align any intervention efforts with the specific age group, for example, primary school students or youth entrepreneurs. Apart from age, a number of sub-groups can be identified in the broader category of children and youth.

This section lists a number of initiatives that are targeting these sub-groups that, if not catered for separately, could remain at a disadvantage even with inclusion efforts for youngsters. Market research performed by the Youth and Financial Services Working Group from The MasterCard Foundation and SEEP provides interesting insights into market segmentation along these lines.

3.3.4.1 Younger youth Younger children are often more dependent on their parents for any income flows. They also tend to spend their money on smaller, discretionary items. Their saving capacity is lower, but as they spend less the savings rate might be higher.

Younger youth often have no experience with financial products or services and prefer to participate in savings groups, supported by peers. The Youth and Financial Services Working Group identified a number of implications that should be taken into account when designing interventions for this particular group. First, parents should be highly involved. Products should carry very low costs, without balance restrictions, and children should have the opportunity to open group accounts.

Furthermore, financial education is of paramount importance for this group and should focus on exploring their future aspirations and setting savings goals.116

112

Plan, Barclays & CARE (2016a) Barclays website 114 Plan, Barclays & CARE (2016a) 115 Plan, Barclays & CARE (2016b) 116 The SEEP Network (2013) 113

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3.3.4.2 Adolescent girls Access to social and economic resources is still more limited for girls than for boys. Over 250 million adolescent girls live in poverty with limited access to education and health services and persistent exposure to discrimination and violence.117 According to the Youth and Financial Services Working Group, girls rely more on income from families, boyfriends, small gifts, and housekeeping. They spend their money on food, education, and personal care and often prioritize household spending over personal expenses. They primarily save money with family and friends and have demonstrated to save more than boys, while having less debt. To ensure effective programs, implementing partners should address the risks with receiving income from boyfriends, incorporate savings methods that differ by gender into financial education training materials and take into account that proximity to financial services might be more important for girls due to personal safety risks.118 A number of financial inclusion initiatives focused particularly on adolescent girls as a client segment. BRAC’s Social and Financial Empowerment of Adolescents (SOFEA) program aimed at empowering girls aged 11 to 21 by bringing them together in clubs and training them in savings and credit facilities, life skills and livelihoods. The program provided the girls with formal savings services and financial literacy training. Along the same lines, BRAC implemented the Empowerment and Livelihood for Adolescents (ELA) program in Uganda. Girls between the ages 13 and 21 were socially and financially empowered by providing them a safe space to come together and to receive life skills training. The number of girls with a bank account increased from 1 to 8 percent in the first year and the average savings of girls living in intervention villages increased by over 70 percent. Sexual and reproductive health outcomes also significantly improved.119 The Safe and Smart Savings program led by the Population Council targeted vulnerable girls aged 10 to 19 years. It combined regular group meetings, facilitated by a female mentor, on financial education and health and life skills education with financial inclusion through individual savings accounts. In the pilot phase, 12,000 girls in Kenya and Uganda were reached. Girls from the program were more like to have a savings plan and three-quarters of the accounts report savings activity. One remarkable finding was only providing financial access increased the likelihood of sexual harassment for older girls, compared to lowering it for girls that also received access to the safe spaces and life skills training.120 Another study by the Population Council on the financial inclusion of female garment workers in Bangladesh identified several barriers young women face in economic inclusion. In this study, many young women were eager to participate in financial educational sessions, but scheduling and other circumstances made participation unrealistic. Working hours and bank operational hours did not comply with one another, which made traditional bank accounts not seem like a viable option. Rather, most participants preferred commitment savings devices, some of which are offered by insurance companies. This option was more popular due to the convenience of working with an agent who lives in the same community. Although many of these women were not living traditional life styles, their families’ as well as their own values remained traditional in that a woman's income was viewed as an income for the entire family. Often these women contributed to helping other family members finance education, set up a business, or get them married. The role young women and girls hold in their families contributes to the lack of financial independence they have. Traditional and cultural values influence the role of women and girls in the family and the community.121 Plan International recognizes the triple burden of being a young, unemployed woman in a developing country. Young women and girls face extra challenges in their unemployment due to gender related barriers. Young women and girls have less access to economic inclusion and access to decent employment. Girls and young women face more physical and sexual violence than boys and men. Additionally, a lack of access to education, domestic duties in the household, and lack of access to vocational training are also barriers girls and young women face in becoming economic citizens. Plan International recommends putting forth a gender specific approach to assist youth to gain employment and become economic citizens.

A specific aim for gender equality and the empowerment of women and girls must be included. This means providing access and assistance in staying in education, vocational and technical training and decent work. The unpaid care that is considered “women’s work” should be acknowledged as productive labor, which will allow women to have greater access and control of their finances and may allow for more participation in formal financial institutions. Policies regarding young people’s employment should include a gender approach that does not tolerate the discrimination of women and girls in training and jobs of certain economic sectors. More research is needed to explore how economic empowerment impacts

117

Girl Effect website The SEEP Network (2013) 119 UNICEF (2012) 120 Population Council (2013a) 121 Population Council (2013b) 118

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girls' self-esteem and their ability to negotiate and make decisions regarding family planning, marriage, and health care.

122

UNDF’s study of migrants in the Association of Southeast Asian Nations region (ASEAN) identified the need for financial education and inclusion of migrant women, especially undocumented migrant women. It should be noted that women migrants are more likely to be undocumented than men and undocumented migrants, in general, face even more difficulties in gaining access to formal economic institutions due to their undocumented status. Even when these formal banking and financial institutions are made available to migrants, often they still opt for the informal methods. Informal banking and agents to send remittances to migrants’ countries of origin remain the more popular option due to their convenience, cost, reliability and accessibility. Policy makers should be aware that licensed brokers for migrants might increase the likelihood that undocumented women migrants will utilize formal financial institutions to send money to their families at home. Migrant women earn less than their male counterparts, which is why they may seek the most affordable and trustworthy methods to send remittances to their home countries. To encourage women migrants to use formal institutions, they need to consider matching the prices and accessibility of the informal financial channels. This study also found that women were more comfortable with discussing their financial matters with other matters, so formal banking institutions should have the option for women to speak to other women representatives at the bank. Generally, to encourage more women migrants to utilize formal economic services, operating hours need to be flexible, reduce the amount of paperwork, and extend branches to more rural areas.123 3.3.4.3 Orphans and vulnerable children Orphans and vulnerable children are more exposed to risks than their peers. They are more likely to malnourished, suffer health risks, and be out of school than other children from the same age. This can be because of their parents passing away, the fact that they live outside of family care or that they are experiencing a situation of severe family abuse and/or neglect. 124 It is estimated that about 132 million children worldwide have lost one or both parents. 125 The Youth and Financial Services Working Group studied some characteristics of out of school youth related to savings. Out of school children work more and are more reliant on a particular job as a single source of income. They increasingly spend money on airtime, rent, and school fees for children and/or siblings. Out of school youth also tend to save more for emergencies and larger purchases. They are easier to reach through savings groups because these require less time. These characteristics should be taken into account when designing financial products and educational services for out of school children and youth. There are also differences between children living in rural and urban areas. Rural youth diversify their incomes with money from agriculture and self-employment. Urban youth spend more on personal consumption, while their rural counterparts spend more on investigating income-generating activities. Sometimes, children in rural areas have a higher savings capacity. Programs might be more effective if they reach out to rural youth outside of harvest seasons, or when they use mobile access points for financial services, or concentrate promotional and educational activities around schools or community centers in rural populations.126 This chapter listed a great number of players that are committed to advancing economic citizenship and financial inclusion for children and youth. Their initiatives take the form of enabling policies, child-friendly products and large-scale research programs. All these activities serve as practical examples for those who want actively promote financial inclusion.

Furthermore, they provide a solid basis of knowledge and experience, on which can be built to achieve larger scales in the future. Though great leading practices, few of these initiatives apply an integrated approach to economic citizenship. Most initiatives only provide a selection of the building blocks. Given the beneficial outcomes of integrating only a few of the components, it would be interesting for future initiatives to take the full integrated model into account.

3.3.4.4 Migrant children A large number of migrant workers as well as their families and children lack financial know-how. Their skills to budget, plan income and expenditures, and use savings, credit, and insurance are also limited. This may lead to higher risks of indebtedness, labor exploitation, and unproductive use of remittances at all stages of the migration cycle by the migrant workers and in their home communities. Financial education can help migrant workers to manage their money, build their assets, protect themselves and them children and expand their opportunities in life. The International Organization for Migration (IOM) is committed to addressing the challenge posed by an increasingly global youth population and its nexus to migration. IOM supports its member states in ensuring that youth have a dignified life, should they decide to migrate or 122

Plan International (2015) UNCDF (2015b) 124 World Bank website 125 UNICEF website 126 The SEEP Network (2013) 123

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look for alternatives to migration. The organization also seeks to reduce the risk of irregular migration and marginalization of youth by boosting job opportunities and assisting in providing better employment conditions for youth. It also seeks to fulfil the potential of youth as agents of change, development and peacebuilding. Through its programs on skills development and vocational training, IOM works to decrease the number of school dropouts while increasing employment opportunities for vulnerable youth. IOM also provides education subsidies to disadvantaged youngsters, including many who are children of migrant workers, allowing them to stay in school longer. Furthermore, IOM provides technical education programs to develop youth entrepreneurship. Such programs are implemented in various countries across all regions.127 UNICEF also pays close attention to the specific target of migration and children in their engagement with development partners in governments, non-governmental organizations, and in intergovernmental forums. The research undertaken by UNICEF Office of Research Innocenti complements these other UNICEF activities in its geographical scope (by including Asia, Africa and Europe) and in its thematic scope (by including children who migrate independently and with their families).    

127 128

UNICEF is working with the UN Department of Economic and Social Affairs to estimate the numbers of international migrant children, and to test methodologies to assess the social impact of migration.

UNICEF is developing employment programs at the country level to alleviate the pressure on young people to leave their families and countries in search of jobs abroad.

UNICEF is exploring research on the linkages between migration, climate change and environmental degradation, and their effects on children and women.

UNICEF is assessing the effects of remittances on children left behind in Albania, Ecuador, El Salvador, Mexico, Jamaica, Morocco, the Philippines and Republic of Moldova.128

IOM (2016) UNICEF – Office of Research Innocenti website

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4. Future Outlook

4. Future Outlook Much progress has been made in the past five years in expanding the reach of Child and Youth Friendly banking products for young people around the world. Up until now, this paper has mainly looked back at past developments. This chapter looks toward the future. Now that the general topic of youth financial inclusion is firmly settled on the agenda of policy makers and practitioners the world over, a further push is required to further include children and youth in financial systems. Moving from strategy and policy formulation to implementation and scaling of integrated financial and educational programming are but a few steps down this road. This chapter looks at the next steps for the children and youth finance movement, policymakers and practitioners and how they can support in advancing financial inclusion for children and youth.

4.1 Recommendations for the Children and Youth Finance Movement The industry’s achievements to date are to a large extent the result of the tireless efforts of the many policy makers, practitioners, and researchers within the Child and Youth Finance Movement. Looking forward, advocacy, knowledge sharing, technical assistance, and monitoring and evaluation will remain central activities for the Movement and will form the bulk of CYFI’s strategy for the next five years. In particular, the importance of an integrated approach towards financial inclusion and financial education, or economic citizenship, is increasingly better understood, but by no means common practice. Building case studies, the movement can support and guide policymakers and practitioners on focus areas and where to invest funds.  Continue advocacy on child and youth economic citizenship, particularly focusing on greater financial inclusion that integrates financial, social, and livelihoods educational components  Provide technical assistance in national strategic planning, Child and Youth Friendly financial product development and ECE related curriculum development  Collect best practices and provide guidance on where to target funding  Demonstrate the benefits and document learnings from various school banking models, encouraging the integration of government, private and public sectors to ensure greater scale and sustainability of initiatives  Reconsider the definition of formal financial inclusion and how technological developments outside of traditional financial institutions influence it.

4.2 Recommendations for Policymakers Policymakers, like central banks, ministries of finance and consumer protection agencies, are crucial in the journey towards financial inclusion for children and youth. They play a key role in bringing together stakeholders, coordinating initiatives, and implementing changes to enable access to safe and appropriate financial products and services. A number of governing bodies, regional authorities, and central banks have agreed on targets for financial inclusion and while often still general, do include children and youth. The UN Sustainable Development Goals promote ‘sustained, inclusive and stable economic growth, full and productive employment and decent work for all,’ which is to be achieved by ‘strengthening the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all’.129 The Maya Declaration commitments from AFI members focus on implementing financial inclusion policies and a regulatory framework, including consumer protection and monitoring progress through comparable indicators. 130 The Global Partnership for Financial inclusion (GPFI) continues to support the implementation of the G20 Financial Inclusion Action Plan. Focus areas are digital finance, data and indicators, consumer protection, and reaching vulnerable groups like youth.131 Collecting reliable data and turning it into information is indispensable for assessing the scope of the issue and tracking progress. Including lower age brackets in the World Bank Global Findex and other data collection efforts would be a helpful next step towards tackling the problem at hand.

129

UN Sustainable Developmen Goals website AFI (2015) 131 GPFI website 130

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When not in place, policymakers should strive to create a national platform committed to promoting economic citizenship.

Through such a platform, policymakers can develop a national strategy on economic citizenship that advances financial inclusion, education, and livelihoods opportunities for children and youth. Where in place, these strategies can be further complemented to include specific implementation options for children and youth. Attention should be paid to the further integration of financial inclusion, financial capabilities, entrepreneurial competencies and promotion of the concept of economic citizenship.

When financial inclusion strategies do exist, initial analysis indicates that minors are not generally a common target of regulation or policies that allow underserved populations to be financially included in an autonomous manner. Some regulations are stronger than others in allowing access to money transactions and remittances for children and adolescents, which could provide new opportunities for dealing with the financial inclusion of minors. Moreover, in parallel, a specific focus needs to be given to the protection of young people’s rights in financial markets. The experience from network partners within the Child and Youth Finance Movement indicates that minors are usually not a specific focus within consumer protection law. 132 However, a more in-depth analysis of financial regulation for youth needs to be conducted to draw this picture globally. CYFI suggests to government authorities to map this regulatory landscape and financial products to be taken into account during the formulation and/or implementation of national initiatives for financial inclusion. This will allow for the incorporation of youth financial inclusion in national policies in a more efficient and effective manner.

Governments and central banks should work with financial institutions, NGOs, and schools in broad initiatives that integrate financial and educational services. In addition, youth themselves should be actively engaged in policy discussions, program evaluations and product development related to economic citizenship. Within the financial landscape for youth, it is the youngsters themselves that should help determine the measures needed to strengthen and solidify their role as financially empowered economic citizens. However, the opinions and recommendations of young people to create a better and more accessible financial future can only be materialized when children and youth are actively engaged in policy dialogue and program evaluation over the long term. Global Money Week, and other significant advocacy and convening events, can help to stimulate this active involvement.  Create or continue cooperation through national multi-stakeholder platforms (government, private, public and academic sector) that actively engages the voices of youth  Develop and implement national strategies that combine financial access, and financial, social, and livelihoods educational elements with a clear focus on the unique needs of children and youth  Identify legal and regulatory barriers that are preventing children and youth from accessing financial services and work on removing them  Invest significantly in school banking models that use the public school system to bring together Child and Youth Friendly banking products and ECE related programming, in partnership with financial service providers and qualified educators  Monitor and evaluate the effectiveness of national financial inclusion and education initiatives, collecting data on key indicators on economic citizenship for children and youth  Leverage local, national and international advocacy and convening events to engage key stakeholders, share resources and inspire action.

4.3 Recommendations for Practitioners Practitioners such as financial institutions and banking associations are the gateway to financial inclusion for children and youth. They have both the opportunity to unlock a whole new customer segment and the responsibility to offer products that respect the interests and needs of children and youth. Practitioners should work together with policymakers to ensure any legal or regulatory barriers, such as age or identification requirements, are removed. At the same time, they should cooperate to ensure that consumer protection policies in place are tailored towards children and youth. Financial institutions that do not offer financial products and services to children should consider developing these, adhering to the 132

CYFI Secretariat (2016)

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Child and Youth Friendly banking principles. Banks that already offer products should make an effort to assess the extent to which their products comply with the child and youth banking principles and adjust their products accordingly.

The last five years have shown that the financial sector is still not fully convinced that they want to invest in youth. Existing products for children and youth often only give limited control and are not available for harder to reach target groups like rural youth. Financial institutions need to pick up their efforts of including children and youth. It is the responsibility of banks and governments alike to improve the business case for providing youth financial services. Practitioners should work together to identify the main barriers and get these barriers removed in a joint effort. With regards to financial, social, and livelihoods education, it seems as if financial institutions are sometimes using their applications and games as a way of showing that they are looking after young clients. However, financial education is not naturally the core business of financial institutions and there is the risk that educational materials are used for public relations and marketing messages.

Banks should focus on their core task of offering child and youth-friendly financial services and work with other partners like national authorities and civil society to integrate educational services, making sure these services can be used in a safe and responsible manner.  Further invest in Child and Youth Friendly products that are designed and contextualized appropriately to the youth client segment  Prioritize impact assessment of existing products and adjust accordingly to align with youth demands and Child and Youth Friendly Banking Principles.  Work actively with policymakers and academics to understand and remove legal and regulatory barriers and enhance the quality of financial and educational interventions.  Widen consumer protection frameworks for children and youth and incorporate greater protection components and citizenship elements into financial and educational programming.

4.4 Conclusion Looking forward, there is a lot of work that remains to be done. The majority of children and youth still do not have access to financial services or economic citizenship education. Empowering the next generation by providing them with the knowledge, skills, and opportunity to save and accumulate assets has a great impact on both macro and micro levels. Policy makers and practitioners from both the public and private sector have to coordinate their efforts to raise this new generation of economic citizens. These efforts should be characterized by applying an integrated approach, including all building blocks of economic citizenship. They should focus on further implementing national strategies, identifying and removing regulatory barriers, and piloting school banking projects. Financial institutions and central banks should work on making existing products more child-friendly and implementing strong frameworks for product standards and consumer protection for children and youth. Only by working together can the Child and Youth Finance Movement, policy makers and practitioners achieve full financial inclusion and economic citizenship.

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Annexes

Annex A: List of Acronyms Acronym ACSI ADENI AFI AMV APCEIU ASIC BCB BMGF BOC BoM BRAC BYB CARE CBT CFED CFI CGAP CONEF CRBP CSFE CVM CYFI DFID ECE EDC ELA ELF ENEF EPSS ESD FE FEEP FINCA FI2020 FLW FOGACOOP FOGAFIN FSP FUCEC GAP GCED GEFI GPFI HNB HSBC ICRW ICT INFE ILO

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Description Amhara Credit and Savings Institutions Association pour la Defense des Enfants du Niger (Association for the Defense of Children in Niger) Alliance for Financial Inclusion Self-regulating Institution of the Stock Market Asia Pacific Centre of Education for International Understanding Australian Securities and Investments Commission Central Bank of Brazil Bill and Melinda Gates Foundation Banking on Change Bank of Mongolia Building Resources Around Communities Build Your Business Programme Cooperative for Assistance and Relief Everywhere Computer Based Training Corporation for Enterprise Development Center for Financial Inclusion Consultative Group to Assist Poor National Financial Education Committee Children’s Rights and Business Principles Child social and financial education Securities and Exchange Commission of Brazil Child and Youth Finance International Department for International Development Economic Citizenship Education Education Development Centre Empowerment and Livelihood for Adolescents Education Learning Framework National Strategy for Financial Education Electronic Performance Support System Education for Sustainable Development Financial Education Financial Education and Protection Partnership Foundation for International Community Assistance Financial Inclusion 2020 Financial Literacy Working Group Cooperative Companies Guarantees Fund Financial Institutions Guarantee Fund Financial Service Provider Faîtière des Unités Coopératives d'Epargne et de Crédit (Cooperative Savings and Credit Umbrella Units) Global Action Programme Global Citizenship Education Global Education First Initiative Global Partnership for Financial Inclusion Hatton National Bank Hong Kong and Shanghai Banking Corporation International Center for Research on Women Information and Communications Technology International Network for Financial Education International Labor Organization

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Acronym IYF J$FFE J$TTA KYK LI MCI MDGs MEA MEDA (M)FI MGIEP NEET NFIT NGO OECD OIBM PAMECAS PISA PLF Previc PTA RBF SBS SDGs SE SEEP SEFCU SFE SME SOFEA Susep UNCDF UNESCO UNFPA UNICEF UNRCR UN USAID VSLAs WBT YE

Description International Youth Foundation Jump$tart Financial Foundations for Educators Jump$tart Teacher Training Alliance Know Your Customer Livelihood Education Making Cents International Millennium Development Goals Mongolian Education Alliance MicroEnterprise Development Association (Micro) Finance Institution Mahatma Gandhi Institute of Education for Peace and Sustainable Development Not in Education, Employment or Training National Financial Inclusion Task Force Non-Governmental Organization Organization for Economic Co-operation and Development Opportunity International Bank of Malawi Partenariat pour la Mobilisation de l'Epargne et le Crédit Au Sénégal (Partnership for Mobilizing Savings and Credit in Senegal) Programme for International Student Assessment Peer Learning Facilitation National Superintendence of Pension Funds Parents and Teachers Association Reserve Bank of Fiji Superintendent of Banks Sustainable Development Goals Social Education Small Enterprise Education and Promotion State Employee Federal Credit Union Social and Financial Inclusion Small and Medium Enterprise Social and Financial Empowerment of Adolescents Superintendence of Private Insurance United Nations Capital Development Fund United Nations Educational, Scientific and Cultural Organization United Nations Population Fund United Nations Children’s Emergency Fund United Nations Committee on the Rights of the Child United Nations United States Agency for International Development Village Savings and Loans Associations Web Based Training Young Entrepreneurs

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Annex B: Glossary Note: Unless otherwise indicated, terms contained in this glossary derive from the CYFI Secretariat in conjunction with the CYFI Academics Working Group

Term Banking Product

Definition Any product offered by a Financial Service Provider

Child

CYFI adopts the UN definition of a Child: “An individual under the age of 18, or under the age of majority as prescribed by national law” (Office of the High Commissioner for Human Rights (1990), ‘The Convention on the Rights of the Child’)

Child & Youth Finance International (CYFI)

The legal organization responsible for coordinating the Child and Youth Finance Network and the Partners within the CYFI network

CYFI Secretariat (CYFI)

The organizing entity of Child and Youth Finance International (CYFI) which reports to the CYFI Supervisory Board and coordinates activities within the CYFI Network. The acronym CYFI can signify both the legal organization CYFI as well as the CYFI Secretariat

CYFI Supervisory Board

The supervisory Board of CYFI, responsible for CYFI’s strategic direction and supervisory management

Child and Youth Finance Activities

All actions, projects and programs relating to the promotion and implementation of undertakings to further financial access and education for children and youth as described in the CYFI strategy

CYFI Annual Summit & Award Ceremony

The annual meeting of CYFI Partners and stakeholders. The purpose of this summit is to strengthen relations, disseminate best practices and share innovations, coordinate activities between partners and stakeholders within the CYFI Network

Child and Youth Finance Movement (the Movement)

An international, inclusive, multi-stakeholder movement comprising CYFI Partners and stakeholders supporting: the creation and strengthening of systems, structures and policies which provide children with choices; informs them of their rights; instills values in them; empowers them to make sound financial decisions, build their assets and invest in their own futures The theoretical base upon which the Child and Youth Finance Movement stands and which outlines how the various interventions of the Child and Youth Finance Network lead to the Movement’s desired outcomes

Child and Youth Finance Movement Theory of Change

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CYFI Network

The multi-stakeholder group of CYFI Partners, comprised by practitioners, policy makers, and researchers and their respective organizations and networks who contribute to, and further the efforts of, the Child and Youth Finance Movement

Child and Youth Friendly Banking

A system of financial services that promotes the creation and provision of financial products and services which are designed to promote safe financial access and financial capability for all children and youth under the age of majority

Child and Youth Friendly Banking Product Certificate

The certificate awarded to financial institutions for banking products offered to children and youth which meet the required Child and Youth Friendly Banking Product standards

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Child and Youth Friendly Banking Product

Savings and current accounts which meet a set of minimum standards as defined by the CYFI Regulation and Inclusion Working Group. These standards ensure that banking products remain inclusive and appropriate, and are designed in the best interest of the child

Economic Citizenship

Economic and civic engagement to promote: reduction in poverty, sustainable livelihoods, sustainable economic and financial well-being and rights for self and others

Economic Citizenship Education

An education curriculum combining the three modules of financial education, social education, and livelihoods education for children and youth as defined in the CYFI Education Learning Framework

CYFI Education Learning Framework (ELF)

The structured set of desired learning outcomes and competences in economic citizenship education as defined by the CYFI Education working Group

Empowerment

Increasing an individual’s confidence and ability to take charge of their lives, claim their rights and build empathy with others

Entrepreneurship

The ability to use one's technical and business skills to take advantage of market opportunities to deliver products and services that generate a sufficient financial return

Financial Access

A means of safely accumulating, controlling and acquiring assets

Financial Education

CYFI adopts the OECD definition of Financial Education: “The process by which individuals improve their understanding of financial products and concepts; and through information, instruction and/or objective advice develop the skills and confidence to become more aware of Financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being and protection.”

OECD (2005). Recommendation on Principles and Good Practices for Financial Education and Awareness

Financial Capability

Combining the knowledge, skills, attitudes, and behaviors that increase financial literacy with access to financial products and services providing individuals with the opportunity to act in their best interest

Financial Inclusion

Access to financial products and services that are affordable, usable, secure and reliable

Financial Institution

A deposit-holding institution with a license from the relevant national financial regulatory authority and providing financial services for its clients or members

Financial Literacy

CYFI adopts the OECD definition of Financial Literacy: “Financial concepts, and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve financial wellbeing of individuals and the society; and to enable participation in economic life,” OECD (2012). PISA 2012 Financial Literacy Framework

Financial Services

Services offered by FSPs complementary to, and comprising, banking Products

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Financial Service Provider (FSP)

Organization providing financial products, including deposits. This includes Financial Institutions as well as non-regulated organizations offering financial services

Global Money Week (GMW)

A week dedicated to the promotion and awareness of financial inclusion and economic citizenship education for children and youth around the globe, coordinated by CYFI

National/Regional/Glo bal Platforms

Activities and structures to catalyze national, regional, and global collaboration advancing the objectives of the Child and Youth Finance Movement

Livelihoods Education

Programs aimed at developing employability skills and entrepreneurial behavior

Livelihood Skills

CYFI adopts the UNICEF definition of Livelihood Skills: “Capabilities, resources and opportunities to pursue individual and household economic goals. Livelihood skills relate to income generation and may include technical / vocational skills, job seeking skills, business management skills, entrepreneurial skills and money management skills.”

UNICEF (2011) Life skills Definition of Terms

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Minimum standards for Child and Youth Friendly Banking Products Social Education

The standards a banking product must meet to be awarded a Child and Youth Friendly Banking Product Certificate. The standards were developed by the CYFI Regulation and Inclusion Working Group

Social Entrepreneurship

The ability to recognize social, human rights, political or environmental needs and to use one's technical and business skills to create effective solutions, that address these issues in a sustainable manner

Socio-Financial Capability

The ability to make informed financial decisions that benefit the individual and community

CYFI Working Groups

Groups of experts from across linked sectors contributing to the strategic focus of the global Child and Youth Finance Movement

Young People

CYFI adopts the UN definition of Young People: “Anyone between the ages of 10 and 24” United Nations. Definition of Youth

Youth

CYFI adopts the UN definition of Youth: “An individual between the ages of 15 and 24” United Nations. Definition of Youth

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Programs aimed at increasing knowledge of human rights, encouraging self-reflection and self-awareness and instilling respect for oneself and others

Annex C: Bibliography African Union (2006), 'African Youth Charter'. Retrieved from: http://www.un.org/en/africa/osaa/pdf/au/african_youth_charter_2006.pdf.

Al Amal Bank website, http://www.alamalbank.com/index.php?option=com_content&view=article&id=232&Itemid=262&lang=en. Accessed on 4 May 2016.

Alliance for Financial Inclusion (2016), ‘Maya Declaration Commitments’ via http://www.afi-global.org/maya-declarationcommitments. Accessed on 3 May 2016.

Alliance for Financial Inclusion (2016), ‘AFI members’, via ‘http://www.afiglobal.org/sites/default/files/publications/afi_official_members_12_april_2016.pdf. Accessed on 6 May 2016.

Alliance for Financial Inclusion (2015), 'Maya Declaration'. Retrieved from: http://www.afiglobal.org/sites/default/files/publications/maya_declaration_2015.pdf.

Ashby, J. S., Schoon, I., & Webley, P. (2011), 'Save now save later? Linkages between saving behavior in adolescence and adulthood', European Psychologist, 16, 227-237. Retrieved from: http://eprints.ioe.ac.uk/7021/1/Ashby2011Save227.pdf Asian Development Bank Institute (2014), 'Financial Stability and Financial Inclusion'. Retrieved from: http://www.adb.org/sites/default/files/publication/156343/adbi-wp488.pdf.

Bangko Sentral ng Pilipinas (2015), 'Financial Inclusion Initiatives 2015'. Retrieved from: http://www.bsp.gov.ph/downloads/Publications/2015/microfinance_2015.pdf.

Bangladesh Bank (2015), 'School Banking presentation for CYFI Awards 2015'. Retrieved from: CYFI Secretariat.

Barclays’ website, https://www.home.barclays/citizenship/citizenship-in-action/banking-on-change.html. Accessed on 10 May 2016.

Berry, J., Karlan, D. & Pradhan, M. (2015), 'The Impact of Financial Education for Youth in Ghana'. Retrieved from: http://papers.tinbergen.nl/15043.pdf.

The Bill and Melinda Gates Foundation website, http://www.gatesfoundation.org/What-We-Do/GlobalDevelopment/Financial-Services-for-the-Poor. Accessed on 17 May 2016.

BRAC (2008), 'Youth Financial Services: The Case of BRAC & the Adolescent Girls in Bangladesh'. Retrieved from: http://www.seepnetwork.org/filebin/pdf/resources/Case_Study_on_BRAC_and_Youth.pdf.

Center for Financial Inclusion website, http://www.centerforfinancialinclusion.org/about and http://www.centerforfinancialinclusion.org/our-definition-of-financial-inclusion, Accessed on 10 April 2016.

Center for Financial Inclusion (2011), 'Opportunities and Obstacles to Financial Inclusion, Survey Report'. Retrieved from: https://centerforfinancialinclusionblog.files.wordpress.com/2011/07/opportunities-and-obstacles-to-financialinclusion_110708_final.pdf.

Center for Social Development, George Warren Brown School of Social Work (2009), 'Youth Saving Preferences in SubSaharan Africa and the Potential for Asset Accumulation'. Retrieved from: http://csd.wustl.edu/Publications/Documents/WP09-28.pdf.

Center for Social Development, George Warren Brown School of Social Work (2010), 'Staying on Course: The Effects of Savings and Assets on the College Progress of Young Adults'. Retrieved from: http://csd.wustl.edu/Publications/Documents/RB10-13.pdf.

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Center for Social Development, George Warren Brown School of Social Work (2013), 'Research evidence on the CYFI model of children and youth as economic citizen'. Retrieved from: http://www.bu.edu/bucflp/files/2014/06/CYFIResearch-Brief-Research-Evidence-on-the-child-and-youth-finance-model-of-economic-citizenship-2.pdf.

Center for Social Development, George Warren Brown School of Social Work (2013), 'Savings Patterns and Performance in Colombia, Ghana, Kenya, and Nepal, YouthSave Research Report 2013'. Retrieved from: http://csd.wustl.edu/publications/documents/rr13-18.pdf.

Central Bank of Nigeria (2012), 'Statistical Bulletin'. Retrieved from: http://www.cenbank.org/out/2013/sd/2012%20statistical%20bulletin%20contents%20and%20narratives_finalweb.pdf.

CFED (2014), 'Financial Education & Account Access Among Elementary Students, Findings from the Assessing Financial Capability Outcomes (AFCO) Youth Pilot'. Retrieved from: http://cfed.org/assets/pdfs/AFCO_Youth_Full_Report_Final.pdf.

CGAP (2012), 'Emerging Perspectives on Youth Savings'. Retrieved from: https://www.cgap.org/sites/default/files/CGAPFocus-Note-Emerging-Perspectives-on-Youth-Savings-Aug-2012.pdf.

CGAP (2013), 'Building a Business Case for Youth Savings: A Framework'. Retrieved from: http://www.youtheconomicopportunities.org/sites/default/files/uploads/resource/Business%20Case%20framework_Ma king%20Cents%20conference_3Sept2013.pdf.

CGAP (2014a), 'The Business Case for Youth Savings: A Framework'. Retrieved from: http://www.cgap.org/sites/default/files/Focus-Note-Business-Case-for-Youth-Savings-A-Framework-Jul-2014.pdf.

CGAP (2014b), 'Financial Inclusion and Development: Recent Impact Evidence'. Retrieved from: http://www.cgap.org/sites/default/files/FocusNote-Financial-Inclusion-and-Development-April-2014.pdf.

CGAP (2015), 'Doing Digital Finance Right: The case for Stronger Mitigation of Customers Risks'. Retrieved from: http://www.cgap.org/sites/default/files/Focus-Note-Doing-Digital-Finance-Right-Jun-2015.pdf.

Country Bank website, https://www.countrybank.com/student/elementary-school. Accessed on 28 May 2016.

Curley, J., Ssewamala, F. & Han, C-K. (2010), 'Assets and Educational Outcomes: Child Development Accounts (CDAs) for Orphaned Children in Ugand', Childen and Youth Service Review, 32(11): 1585–1590. Retrieved from: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2976060/.

CYFI website, http://childfinanceinternational.org/theory-of-change. Accessed on 29 March 2016.

CYFI (2011a), 'ChildFinance Access Working Group'. Retrieved from: http://www.childfinanceinternational.org/index.php?option=com_mtree&task=att_download&link_id=862&cf_id=200.

CYFI (2011b), 'Children, Youth & Finance 2011'. Retrieved from: http://childfinanceinternational.org/index.php?option=com_mtree&task=att_download&link_id=1468&cf_id=200.

CYFI (2012a), 'Child and Youth Friendly Banking Product Certificate'. Retrieved from: http://childfinanceinternational.org/library/cyfi-publications/Child-and-Youth-Friendly-Banking-Product-CertificateCYFI.pdf.

CYFI (2012b), 'The Government Saving Banks, Thailand (Presentation from CYFI Asia-Pacific Regional Meeting 2012)'.

Retrieved from: http://www.childfinanceinternational.org/index.php?option=com_mtree&task=att_download&link_id=1459&cf_id=200.

CYFI (2013a), 'Children, Youth & Finance: From Momentum to Action'. Retrieved from: http://childfinanceinternational.org/resources/publications/children-youth-finance-from-momentum-to-action.pdf.

CYFI (2013b), 'Conceptual Development of CYFI model of Children and Youth as Economic Citizens'. Retrieved from: http://www.childfinanceinternational.org/index.php?option=com_mtree&task=att_download&link_id=1523&cf_id=200.

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CYFI (2014a), 'A Call for Savings: The Case for Microfinance to Provide Mobile Banking Deposit Services to Youth'.

Retrieved from: http://childfinanceinternational.org/resources/publications/mBanking-mfis-youth.pdf.

CYFI (2014b), 'Children, Youth & Finance 2014, Action for Sustainable Outreach'. Retrieved from: http://childfinanceinternational.org/resources/publications/2014-children-youth-and-finance.pdf.

CYFI (2015a), '2015 CYFI Awards Ceremony, Profile of Award Finalists'. Retrieved from: http://childfinanceinternational.org/resources/meetings/2015-cyfi-awards-booklet.pdf.

CYFI (2015b), 'Advancing Economic Citizenship for Children And Youth In Sub-Saharan Africa'. Retrieved from: http://unhabitat.org/books/advancing-economic-citizenship-for-children-and-youth-in-sub-saharan-africa/.

CYFI (2015c), 'Children, Youth & Finance 2015'. Retrieved from: http://www.childfinanceinternational.org/resources/publications/children-youth-finance-2015.pdf.

CYFI (2016a), 'Strategy Consultation Survey (n=320)'. Retrieved from: CYFI Secretariat.

CYFI (2016b), 'The Regional Financial Inclusion Landscape of Youth Bank Accounts: Selected Country Cases from Central and Eastern Europe'. Retrieved from: http://childfinanceinternational.org/resources/publications/CYFI-Regional-FILandscape-Central-Eastern-Europe.pdf.

Dupas, P. & Robinson, J. (2013), 'Why Don't the Poor Save More? Evidence from Health Savings Experiments', American Economic Review, 103(4), 1138-1171. Retrieved from: http://web.stanford.edu/~pdupas/DupasRobinson_HealthSavings.pdf.

European Commission (2008), 'Services Provision and Prevention of Financial Exclusion'. Retrieved from: http://ec.europa.eu/social/main.jsp?langId=en&catId=22.

European Microfinance Platform (2015), 'More Inclusive Finance for Youth: Scalable and Sustainable Delivery Models for Financial and Non-Financial Services'. Retrieved from: http://www.emfp.eu/sites/default/files/resources/2015/05/European_Dialogue_No_8_web.pdf.

FinScope website, http://www.finmark.org.za/sites/finscope/. Accessed on 10 June 2016.

Forero-Ramirez, N., Knoote, F.E.W. & Ortega-Tineo, S. (2015), 'Children and the Financial Regulatory Landscape in Latin America', Borradores De Economia, No. 905. Retrieved from: http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/be_905.pdf.

Freedom from Hunger & The MasterCard Foundation (2013), 'Saving Together: Group-Based Approaches to Promote Youth Savings'. Retrieved from: https://www.freedomfromhunger.org/sites/default/files/SavingTogether_Eng_Web.pdf.

Freedom from Hunger & The MasterCard Foundation (2014), 'From One Generation to the Next: The Role of Parents in the Financial Inclusion of Young People'. Retrieved from: http://www.microfinancegateway.org/sites/default/files/publication_files/from_one_generation_to_the_next_eng.pdf.

Freedom from Hunger (2014), 'Advancing Integrated Microfinance for Youth (AIM Youth)'. Retrieved from: https://www.freedomfromhunger.org/sites/default/files/documents/AIMyouthBrief_Eng.pdf.

Friedline, T. (2014), 'The Independent Effects of Savings Accounts in Children’s Names on Their Savings Outcomes in Young Adulthood', Journal of Financial Counseling and Planning, 25(1). Retrieved from: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2466561.

Friedline, T., Elliott, W., & Chowa, G. (2013), 'Testing an asset building approach for young people: Early access to predict later savings', Economics of Education Review, Special Issue: Assets and educational attainment: Theory and evidence, 33, 31-51.

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Girl Effect (2014), 'Empowering Girls with Economic Assets'. Retrieved from: https://www.empowerwomen.org/~/media/files/un-women/knowledgegateway/resourcefiles/2014/08/25/11/41/girl_effect_presentation_empowering-girls-with-economic-assets.ashx.

Global Alliance for Financial Inclusion website, http://www.gpfi.org/about-gpfi. Accessed on 18 May 2016.

Global Partnership for Financial Inclusion website, http://www.gpfi.org/news/2016-gpfi-priorities-and-key-gpfi-dates.

Accessed on 4 May 2016.

HSBC School Bank website, http://www.hsbc.co.uk/1/2/current-accounts/under-18-bank-account/school-bank. Accessed on 6 May 2016.

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International Organization for Migration (2016), ‘Migration governance and sustainable development’. Retrieved from: https://publications.iom.int/system/files/migration_initiatives2016.pdf IZA (Institute for the Study of Labour) (2012), 'Under-savers anonymous: Evidence on self-help groups and peer pressure as a savings commitment device'. Retrieved from: http://www.nber.org/papers/w18417.pdf.

Johnson, L., Lee, Y., Ansong, D., Sherraden, M., Sherraden, M., Chowa, G., Ssewamala, F. & Zou, L. (2015), 'Youth Savings Patterns and Performance in Colombia, Ghana, Kenya, and Nepal', YouthSave Research Report 2015, CSD Publication 1501. Retrieved from: http://csd.wustl.edu/Publications/Documents/RR15-01.pdf Lührmann, M., Serra-Garcia, M. & Winter, J. (2013), 'Teaching teenagers in finance: does it work?', Munich Discussion Paper No. 2012-24. Retrieved from: https://epub.ub.unimuenchen.de/14101/1/Luhrmann%20et%20al%20Teaching%20teenagers_december2013.pdf.

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Making Cents International, ‘Global Youth Economic Opportunities Summit’ website, via http://www.youtheosummit.org/. Accessed on 13 June 2016.

Making Cents International (2015), ‘Emerging guidelines for youth-inclusive financial services’ at Caribbean Microfinance Forum 2015.

Martinez, M.V. (2011), 'The Political Economy of Increased Financial Access'. Retrieved from: https://repository.library.georgetown.edu/bitstream/handle/10822/553824/martinezMonicaV.pdf?sequence=1&isAllow ed=y.

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Retrieved from: http://www.microfinancegateway.org/library/child-savings-account-global-trends-design-and-practice.

Microfinanza (2015), 'Final Evaluation of the YouthStart Program'. Retrieved from: http://www.uncdf.org/sites/default/files/Documents/youthstart_00077039_er_final_090915.pdf.

Multisectoral Commission for Financial Inclusion Peru (2015), 'National Financial Inclusion Strategy'. Retrieved from: http://www.mef.gob.pe/contenidos/archivos-descarga/ENIF.pdf.

New America Foundation (2013), 'Beyond the Buzz, the Allure and Challenge of Using Mobile Phones to Increase Youth Financial Inclusion'. Retrieved from: https://docs.google.com/viewerng/viewer?url=http://communitywealth.org/sites/clone.community-wealth.org/files/downloads/paper-zimmerman-et-al_0.pdf.

New America Foundation (2014), 'Investing in Children: Child Development Accounts as an Early Childhood Intervention'.

Retrieved from: https://www.newamerica.org/downloads/Friedline-SchuetzCDAs_as_Early_Childhood_Intervention.pdf.

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OECD (2014), 'PISA 2012 Results: Students and Money: Financial Literacy Skills for the 21st Century'. Retrieved from: https://www.oecd.org/pisa/keyfindings/PISA-2012-results-volume-vi.pdf.

Omunjalu, B.S. & Fondo, F. (2014), 'The Role of Microfinance in Economic Empowerment of the Youth', IOSR Journal of Business and Management, 16(5), 26-32. Retrieved from: http://www.iosrjournals.org/iosr-jbm/papers/Vol16issue5/Version-1/E016512632.pdf.

Onaolapo, A.R. (2015), 'Effects of financial inclusion on the economic growth of Nigeria (1982-2012)', International Journal of Business and Management Review, 3(8), 18-25. Retrieved from: http://www.eajournals.org/wpcontent/uploads/Effects-of-Financial-Inclusion-on-the-Economic-Growth-of-Nigeria-1982-2012.pdf.

O'Prey, L. & Shepard, D. (2014), 'Financial Education for Children and Youth: A Systematic Review and Meta-analysis', Aflatoun Working Paper 2014.1C. Retrieved from: http://www.aflatoun.org/docs/default-source/aflatoun-secretariatevaluation/financial-education-for-children-and-youth---systematic-review-and-meta-analysis.pdf?sfvrsn=10.

Pew Research Center (2013), ‘Selected Age Break Tables’. Retrieved via: http://www.pewglobal.org/2014/02/13/selected-age-break-tables/.

Plan, Barclays, CARE (2013), 'Banking on Change: Breaking the Barriers to Financial Inclusion'. Retrieved from: https://www.home.barclays/content/dam/barclayspublic/docs/Citizenship/banking-on-change.pdf.

Plan, Barclays, CARE (2016a), 'The Banking on Change Youth Savings Group Model: From Saving and Learning to Banking and Earning'. Retrieved from: http://www.planuk.org/assets/Documents/pdf/Banking_on_Change_Youth_Savings_Group_Model.pdf.

Plan, Barclays, CARE (2016b), 'The State of Linkage Report, The first global mapping of savings group linkage'. Retrieved from: http://insights.careinternational.org.uk/media/k2/attachments/The-State-of-Linkage-Report-2016.pdf.

Plan International (2015), ‘Young, Woman and Unemployed: The Triple Challenge: Youth economic empowerment in developing and emerging countries.’ Retrieved from: https://plan-international.org/young-woman-and-unemployedtriple-challenge Population Council (2010), ‘Financial Inclusion of Female Garment Workers.’ Retrieved from: http://www.popcouncil.org/uploads/pdfs/2013PGY_GarmentWorkers.pdf Population Council (2013a), 'Safe and smart saving products for vulnerable adolescent girls in Kenya and Uganda'.

Retrieved from: http://www.popcouncil.org/uploads/pdfs/2013PGY_SafeSmartSavingsEvalReport.pdf.

Population Council (2013b), ‘Girl-Centered Program Design: A Toolkit to Develop, Strengthen and Expand Adolescent Girls Programs.’ Retrieved from: http://www.popcouncil.org/research/girl-centered-program-design-a-toolkit-todevelop-strengthen-and-expand-ado

Save the Children, UN Global Compact & UNICEF (2012), 'Children Rights and Business Principles'. Retrieved from: http://www.unicef.org/csr/css/PRINCIPLES_23_02_12_FINAL_FOR_PRINTER.pdf.

SchoolBank Champs website, http://www.schoolbankchamps.com/mapping?bank_id=all. Accessed on 4 May 2016.

SEFCU website, https://www.sefcu.com/schoolbanking/. Accessed on 3 June 2016.

Sherraden M.S. & Johnson, L (2007), 'From Financial Literacy to Financial Capability Among Youth', Journal of Sociology and Social Welfare 34(3), 119-145. Retrieved from: http://csd.wustl.edu/publications/documents/wp06-11.pdf.

The Smart Campaign website, http://www.smartcampaign.org/certification/certification-frequently-asked-questionsfaq#What_does_it_mean_to_be_certified_for_client_protection. Accessed on 25 April 2016.

SmartCampaign (2015), 'Progress Report July 2015'. Retrieved from: https://www.scribd.com/doc/273044614/SmartCampaign-Progress-Report-July-2015.

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Storm, L., Porter, B. & Macaulay, F. (2010), 'Emerging guidelines for linking youth to financial services', Enterprise Development and Microfinance Vol. 21 No. 4. Retrieved from: http://www.mastercardfdn.org/pdfs/Emerging%20Guidelines%20for%20linking%20youth%20to%20financial%20services .pdf.

The MasterCard Corporation & CYFI (2014), 'Banking a New Generation, developing responsible retail banking products for children and youth'. Retrieved from: http://www.childfinanceinternational.org/resources/publications/2014-bankinga-new-generation.pdf.

The MasterCard Foundation & New America (2014), 'Regulatory Environments for Youth Savings in The Developing World: Executive Summary'. Retrieved from: https://www.newamerica.org/downloads/Regulatory_Environments_for_Youth_Savings_Developing_World_Youthsave. pdf.

The MasterCard Foundation (2014), 'Business Case for serving youth'. Retrieved from: http://www.meda.org.in/files/06Business-Case-For-Serving-Youth.pdf.

The MasterCard Foundation (2015), 'Financial Services for Young People: Prospects and Challenges'. Retrieved from: http://www.issuelab.org/requester/sdgs/id/22257.

The SEEP Network (2013), 'Understanding Youth and their Financial Needs'. Retrieved from: http://www.seepnetwork.org/filebin/pdf/resources/Understanding_Youth_and_their_Financial_Needs_April_2013.pdf.

The SEEP Network (2015), 'Usage and Dormancy'. Retrieved from: http://www.seepnetwork.org/filebin/pdf/resources/YFS-Usage_and_Dormancy-Final.pdf.

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Accessed on 12 April 2016.

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UNICED, Office of Research – Innocenti website, ‘Migration and children’, via https://www.unicef-irc.org/knowledgepages/Migration-and-children/605/. Accessed on 4 July 2016.

UNICEF (2012), 'BRAC's Empowerment and Livelihood for Adolescents: Changing Mind-sets and Going to Scale with Social and Financial Skills for Girls'. Retrieved from: http://www.unicef.org/socialpolicy/files/BRAC-_November_2012.pdf.

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VSLA website, http://www.vsla.net/aboutus/vslmodel. Accessed on 19 May 2016.

Women’s World Banking website, https://www.womensworldbanking.org/impact-page/. Accessed on 15 May 2016.

Women's World Banking (2014a), 'Building a Sustainable Youth Savings Proposition: Lessons from Banco ADOPEM'.

Retrieved from: http://www.womensworldbanking.org/wpcontent/uploads/2015/01/WomensWorldBanking_BuildingSustainableYouthSavingsProposition_LessonsBancoADOPEM. pdf.

Women's World Banking (2014b), 'Banking on Youth: A Guide to Developing Innovative Youth Savings Programs'.

Retrieved from: http://www.womensworldbanking.org/wp-content/uploads/2014/10/Womens-World-Banking-BankingOn-Youth-2014.pdf.

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World Bank (2011), 'Measuring Financial Inclusion: the Global Financial Inclusion Index (Global Findex)'. Retrieved from: http://siteresources.worldbank.org/DEC/Resources/FinInclusionBrochureFINALWEB.pdf.

World Bank (2013), 'Financial Inclusion for Financial Stability, Access to Bank Deposits and the Growth of Deposits in the Global Financial Crisis'. Retrieved from: https://openknowledge.worldbank.org/bitstream/handle/10986/16010/WPS6577.pdf?sequence=1&isAllowed=y.

World Bank (2015), 'The Global Findex Database 2014: Measuring Financial Inclusion around the World'. Retrieved from: https://media.worldbank.org/secure/global-findex-2014/Global-Findex-2015-Report.pdf.

World Bank (2016a), 'Digital Dividends'. Retrieved from: http://www.worldbank.org/en/publication/wdr2016.

World Bank (2016b), 'Women, Business and the Law 2016'. Retrieved from: http://wbl.worldbank.org/~/media/WBG/WBL/Documents/Reports/2016/Women-Business-and-the-Law-2016.pdf.

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YouthSave Consortium (2015), 'YouthSave 2010-2015: Findings from a Global Financial Inclusion Partnership'. Retrieved from: http://csd.wustl.edu/OurWork/FinIncl/GlobalAssetBuild/YouthSave/Documents/YouthSave%20synthesis%20report.pdf.

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Annex D: Key Players Detailed Overview Name

Type

Key activities

Alliance for Financial Inclusion

Intergovernmental Private sector

 Commit national governments to FI targets  Support the development of innovative financial products  Support the development of innovative financial products Support financial inclusion initiatives  Promote financial inclusion for children and youth specifically  Advocate and implement  Publish research

Bill and Melinda Gates Foundation Bill and Melinda Gates Foundation Central banks

Public sector

Child & Youth Finance International

Civil society

Consultative Group to Assist the Poor Financial Inclusion 2020 (Centre for Financial Inclusion/Accion) Financial Institutions (commercial, microfinance, credit unions, village savings and loans associations) Global Partnership for Financial Inclusion Making Cents

Civil society

Save the Children, BRAC, MEDA, Freedom from Hunger, FINCA, New America, SEEP The MasterCard Foundation

Civil society

The Nike Foundation

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Private sector

Civil society

Private sector

Intergovernmental Civil society

Private sector

Private sector

United Nations Capital Development Fund

Intergovernmental

Women’s World Banking

Civil society

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Fund

Implement

√

√

√

√

√

√

√

√ √

√

√

√ √

√

 G20 platform

√

√

 Increase youth economic opportunities  Implement financial inclusion programs  Research impact  Works in 10 major partnerships in 17 countries to promote financial inclusion  Focus on the empowerment of girls through their GirlsEffect program  Provide seed capital and technical assistance  Supporting 31 countries  Promote financial inclusion for women

Research

√

 Promote dialogue and developing a shared vision  Develop financial products and services for children and youth

Coordinate

√

√ √

√

√

√

√

√

√

√

√

√

√

√ √

√

Annex D: Banking Products Assessed for Child Friendliness Region

Country

Institution

Product

Score (max = 27)

Africa

Ethiopia

ACSI

Raey

20

Africa

Ghana

HFC Bank

Brainy Child Account

10

Africa

Kenya

Kenya Post Office Savings Bank

Smata Account

11

Africa

Nigeria

Access Bank

Early Savers Account

14

Africa

Uganda

Finance Trust Bank

Teen Classic

11

Africa

Uganda

FINCA

Smart Start

17

Americas and the Caribbean

Dominican Republic

Banco ADOPEM

MIA menores

17

Americas and the Caribbean

Peru

Scotiabank

Cuenta Kids

14

Americas and the Caribbean

Uruguay

Banco Republica

X mi cuenta

16

Asia and the Pacific

Australia

Bank West Australia

Children's Savings Account

14

Asia and the Pacific

Australia

Commonwealth Bank of Australia

Youthsaver

20

Asia and the Pacific

Fiji

ANZ Bank

Junior Access Account

14

Asia and the Pacific

India

Axis Bank

My Money Card

13

Asia and the Pacific

Mongolia

XacBank

Temuulel

17

Asia and the Pacific

Papua New Guinea

Bank South Pacific

Kid's Savings Account

17

Asia and the Pacific

Singapore

DBS Bank

DBS remix

11

Asia and the Pacific

Singapore

OCBC Bank

Frank

18

Asia and the Pacific

Singapore

POSB

ePOSB Kids Account

11

Europe and Central Asia

Luxembourg

BIL

Youth Savings Account

20

Europe and Central Asia

Moldova

ProCredit Bank

ProKid

11

Europe and Central Asia

Netherlands

ING

Youth Account

24

Europe and Central Asia

Netherlands

Rabobank

Rabo Youth Account

16

Europe and Central Asia

Northern Ireland

Danske bank

Danske Discovery

20

Europe and Central Asia

Poland

Bank Polski

PKO account children

16

Europe and Central Asia

Spain

BBVA

Cuenta Blue Online

10

Europe and Central Asia

Switzerland

UBS

Youth Saving Account

15

Europe and Central Asia

UK

HSBC

MySavings

11

Middle East and North Africa

Dubai

Dubai Islamic Bank

Shaatir Savings Account

20

Middle East and North Africa

Egypt

Bank Audi

Youth account: The Savvies

10

Middle East and North Africa

Jordan

Arab Bank

Jeel el Arabi Account

8

Middle East and North Africa

Yemen

Al-Amal

Child Saving

11

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65

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