MicroCapital: What is the motivation for the new study “More Inclusive Finance for Youth: Scalable and Sustainable Delivery Models for Financial and Non-Financial Services,” which was published recently by e-MFP’s Youth Financial Inclusion Action Group?
Severine Deboos: Almost 73 million youth worldwide are looking for work. The UN’s International Labour Office (ILO) considers financial inclusion an important ingredient to fostering youth employment. While young people may need access to services such as savings, credit, insurance and payments, potential employers may need loans to fund apprenticeships.
Silatech, a Qatar-based social enterprise aiming to increase employment and entrepreneurship among youth in the Middle East and North Africa, recently announced the development of Narwi, a nonprofit crowdfunding platform that will support microentrepreneurs via Islamic charitable giving. The platform is scheduled to be launched in late June 2015.
The International Organization of La Francophonie (IOF), a Paris-based organization of 80 French-speaking countries, and the government of Canada recently announced an agreement under which Canada would contribute approximately USD 10 million to IOF to promote employment for women and youth through entrepreneurship in francophone Sub-Saharan Africa.
“The Global Findex Database 2014: Measuring Financial Inclusion Around the World;” by Asli Demirguc-Kunt, Leora Klapper, Dorothe Singer and Peter Van Oudheusden; published by the World Bank; April 2015; 88 pages; available at http://www.worldbank.org/en/programs/globalfindex
The World Bank’s Global Findex Database 2014 indicates that between 2011 and 2014, 700 million people became accountholders for the first time at banks, via other financial institutions and with mobile money service providers, reducing the number of unbanked individuals by 20 percent.
The World Savings and Retail Banking Institute (WSBI), a Switzerland-based association of approximately 1,000 financial intermediaries from 89 countries, and Child and Youth Finance International (CYFI), a Netherlands-based nonprofit organization that promotes youth financial access and education, have signed a memorandum of understanding to formalize their ongoing collaboration with the aim of empowering people around the world between the ages of 6 and 30, in particular by increasing their financial capabilities, helping them to develop livelihoods and improving their access to “appropriate” financial services.
The MasterCard Foundation, which is based in Canada, and TechnoServe, a US-based nonprofit organization, recently announced a five-year, USD 25.9 million partnership to support 48,000 young people in rural East Africa via a second phase of the Strengthening Rural Youth Development through Enterprise (STRYDE) program, which was first launched in August 2011.
Credit Suisse, a Swiss global financial services company with operations in 50 countries, has agreed to donate an undisclosed sum to Opportunity International, a US-based nonprofit providing microfinance in 22 countries, to launch a three-year program entitled “Empowering Generational Change Through Education” that focuses on lending for education initiatives.
Vittana, a US-based nonprofit that raises funds for microfinance institutions to lend to students pursuing higher education in developing countries, recently announced that it will cease to operate as an independent organization.
Countering the perception that youth are riskier borrowers than older clients, Maria Perdomo, the manager of the UN Capital Development Fund’s YouthStart program, recently presented data from seven African microfinance institutions (MFIs) showing that all but one have lower rates of portfolio at risk (PAR) within the segments of their portfolios serving youth than organization-wide. Nonetheless, she noted, youth often make up a disproportionately small share of an MFI’s customer base because loan officers believe they are less likely than others to repay, which would threaten the bonus that many loan officers receive when more of their clients do repay their loans.
Event Name: 2014 Global Microfinance Case Competition
Event Dates: September 7-12, 2014
Event Location: Melbourne, Australia
“Microfinance Banana Skins 2014: Facing Reality;” published by Centre for the Study of Financial Innovation; July 2014; 84 pages; available athttp://csfi.org/files/Microfinance_Banana_Skins_2014_-_WEB.pdf
This report, which is based on data collected by surveying 306 people associated with the microfinance industry, examines 19 risks faced by microfinance institutions (MFIs) across the globe.
Event Name: G20 Young Entrepreneurs’ Alliance Summit 2014
Event Date: July 18-22, 2014
Event Location: Sheraton on the Park Hotel, Sydney, Australia
The Reserve Bank of India (RBI), a government agency charged with overseeing the Indian financial sector, reportedly has decided to allow minors over 10 years of age to open savings accounts at banks without the supervision of a guardian.
Event Name: Global Money Week 2014
Event Date: March 10 – March 17, 2014
Event Location: Separate events will be held in approximately 80 countries across Africa, the Americas, Asia, Europe, the Middle East and the Pacific.
As part of the opening day of European Microfinance Week, a series of events hosted by the Luxembourg-based European Microfinance Platform (e-MFP), the Youth Financial Inclusion Action Group of e-MFP met today to carry on its work relating to savings and other financial services for young people, particularly those aged 15 to 24.