By Lise Paaskesen and Steven Peachey, published by the World Savings Banks Institute (WSBI), October 2019, 45 pages, available at
https://www.wsbi-esbg.org/SiteCollectionDocuments/0587_ESBG_BRO_CENTRALREPORT%20(004).pdf
The Scale2Save initiative of WSBI and the Mastercard Foundation is intended to contribute to improving financial services for people aged 15 to 30 years by examining their access to services, support structures and entrepreneurship opportunities in three rapidly growing African countries – Morocco, Nigeria and Senegal. Part of this work is to identify effective ways for financial services providers (FSPs) to connect with these populations.
Using mechanisms such as 13-week financial diaries and quantitative analyses of public data, the authors find that gender, age and geographic location often dictate the range of opportunities available to younger populations. These three basic factors also tie into more complex influences, such as social pressures and gender norms.
The authors argue that FSPs should focus on addressing various stages of young people’s lives as well as their diverse lifestyles. Different segments of this market can benefit from tailored mixes of individual savings accounts, loans, household accounts and access to financial technology.
For those who are financially dependent on their families, a shared account can allow free transfers among household members. An account targeted to those under 18 could include a set of functions that are enabled over time, as the client becomes increasingly financially independent. FSPs can support young entrepreneurs by partnering with other organizations to provide training to typically marginalized groups, such as women or those living in rural areas. FSPs can also promote inclusion through digital and print campaigns that target youth, exposing them to the potential benefits of financial services.
By Anna Gravois, Research Associate
Sources and Additional Resources
“Young People in Africa” report
https://www.wsbi-esbg.org/SiteCollectionDocuments/0587_ESBG_BRO_CENTRALREPORT%20(004).pdf
WSBI homepage
https://www.wsbi-esbg.org
Mastercard Foundation homepage
https://mastercardfdn.org
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROFINANCE PAPER WRAP-UP: “Remote Coaching to Prevent Dormancy Among Low-income Savers,” by Scott Graham et al, Published by WSBI
- MICROFINANCE PAPER WRAP-UP: “Driving Financial Resilience Through Formal Savings Among the Low-Income Population,” by Laura Courbois et al, Published by World Savings and Retail Banking Institute
- MICROFINANCE PAPER WRAP-UP: “2023 Microfinance Index Report,” Published by 60 Decibels
- MICROCAPITAL BRIEF: 24 Education Technology Startups in Kenya, Nigeria Joining Mastercard Foundation EdTech Fellowship
- MICROFINANCE PAPER WRAP-UP: “State of the Art of Green Inclusive Finance 2011-2019: Worldwide Status and Progress Over 10 Years,” by e-MFP Green Inclusive and Climate Smart Finance Action Group
