SPECIAL REPORT: “More Inclusive Finance for Youth: Scalable and Sustainable Delivery Models for Financial and Non-Financial Services” from e-MFP’s Youth Financial Inclusion Action Group

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.

MICROCAPITAL BRIEF: Silatech Develops Crowdfunding Website Narwi for Shariah-Compliant Microfinance in Middle East, North Africa

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.

MICROCAPITAL BRIEF: Canada to Contribute $10m to International Organization of La Francophonie to Promote Entrepreneurship in Sub-Saharan Africa

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.

MICROFINANCE PUBLICATION ROUND-UP: Global Findex Database 2014; PEP Report on Female Entrepreneurs in Nigeria; YouthSave Research Report 2015

“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.

MICROCAPITAL BRIEF: World Savings and Retail Banking Institute (WSBI), Child and Youth Finance International (CYFI) Partner to Promote Youth Financial Inclusion

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. 

MICROCAPITAL BRIEF: The MasterCard Foundation, TechnoServe Extend “Strengthening Rural Youth Development through Enterprise” (STRYDE) in East Africa

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[1].

MICROCAPITAL BRIEF: Credit Suisse to Fund Opportunity International’s “Empowering Generational Change Through Education” in Africa, Asia, Latin America

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.

SPECIAL REPORT: Youth Are Less Risky Borrowers? European Microfinance Week Participants on Serving Young People via Leasing, Peer Education, Automatic Teller Machines (ATMs)

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.

MICROFINANCE PUBLICATION ROUND-UP: Microfinance “Banana Skins” Risk Assessment; Effects of Microloans from Compartamos in Mexico; Youth Financial Inclusion Video

“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.

MICROCAPITAL BRIEF: Reserve Bank of India (RBI) to Allow Minors Over Age 10 to Open Savings Accounts

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.

MICROFINANCE EVENT: Child and Youth Finance International (CYFI) to Sponsor Worldwide Events for “Global Money Week 2014”, March 10 – 17, 2014

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.

SPECIAL REPORT: Youth Financial Inclusion Group Tackles Business Training, Scaling-up, Dormant Accounts, Program Indicators, Self-sufficiency at European Microfinance Week

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.