STATE OF THE FIELD IN YOUTH ECONOMIC OPPORTUNITIES

Table of Contents
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8
Chapter 9
Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Annexes
2012 State of the Field in Youth Economic Opportunities
8.4.2 New Tool: A Youth-Inclusive Product Design Framework
Chapter 8: Youth-Inclusive Financial
Services and Capabilities
The framework below was developed by Freedom
from Hunger in order to outline the youth and
institutional needs and preferences that must be
taken into consideration when translating market
research findings into aspects of a product design.
As a key step in the design of the financial products
and education, Freedom from Hunger designed
and led a concept development workshop with its
implementing partners in Ecuador and Mali. The
workshop in both countries used the same approach
in which youth who participated in the market
research were invited to attend all three days of the
workshop. The objective of their participation was to
engage them in the design process of the financial
YOUTH NEEDS / PREFERENCES
Capacity to save (how much, how
often)
• Can save, but in small amounts
(approx. $0.10-$2 USD)
• Access to money is irregular
Source of money
• Work/small business or from
parents / adults
Reasons for saving and spending
needs (long-term, short-term)
• Need access to infrequent large
sums of money (ex. wedding
trousseau), but also small
amounts for household needs
(ex. food)
Life stage and relationships
• Most youth migrate (work or
marriage), but not all at the same
time
• Tend to gather in informal youth
groups within the community
• Often get money/borrow from
parents/adults
Understanding / using financial
services
• Perceive financial institutions to
be mostly for wealthier people
INSTITUTIONAL NEEDS/
PREFERENCES
Institutional requirements
• Minimum opening balance of
approx. $4.44 USD
• Annual account fees of $4.44
USD
• Social share of $11 USD
• Identification
Regulatory requirements
• Youth under 18 years old have
an adult signer
Sustainability
Want recognition in community
products and education providing a venue for youth
to express their opinions. During the workshop,
Freedom from Hunger, partner staff, and youth
analyzed the market research results and determined
ways in which key needs and preferences of youth
could be addressed through integrated financial
products and financial education. After the workshop,
Freedom from Hunger led individual discussions with
the partner to address design challenges and finalize
the product.
The framework below has been populated with
data from Nyèsigiso, one of Freedom from Hunger’s
partners in Mali.
IMPLICATIONS FOR PRODUCT DESIGN*
Product (Account opening requirements
must balance youth capacity and institutional
requirements and account terms to fit youth needs)
• Encourage collective savings through a group
savings account
• Mechanisms for youth to drop out or join a group
• Allow withdrawals to meet youth needs
• Require an adult for youth groups under 18 years
old
• Allow youth to fill out an identification form in lieu
of an official identification
Price (Account fees need to be affordable, not detract
youth, but take into account costs for the institution )
• Allow several weeks for youth to accumulate
minimum amounts
Promotion (Parents might need to be involved in
promotional strategy; marketing materials must be
simple and attractive, provide transparency of terms)
• Develop community-oriented promotional
strategies to build trust
• Involve parents/adults in promotion
Place (Define outreach strategy / point of entry
based on places where youth will be reached)
• Reach out to existing youth groups
People (Train staff in youth needs and parental
involvement)
• Staff need training to better understand youth
needs
*Freedom from Hunger decided to use a simplified version of the 8 Ps (5 Ps) to more appropriately serve its needs
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