"Inculcating savings culture among the Ghanaian youth; An insight into HFC

Enidaso product"

Joint presentation by HFC Bank & YouthSave Project

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The Innovative Partnership

• The HFC Enidaso account is a product of a partnership between the HFC Bank and the YouthSave Project.

• A partnership with an aim to help the youth build a tangible stake in their future.

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...Why a saving culture?

• There is a correlation between economic growth (from the country to the individual) and savings.

• A country’s reflection of its people - less than 40% of Ghanaians save.

• Access to capital is a major challenge in economic empowerment for low income people.

• Personal savings is the easiest means to build capital for low income people.

• It has been proven that the poor can accumulate capital through saving.

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Why the focus on youth?

• 15 -35 year olds (youth) constitute 37% of the population.

• 12 – 18 year olds constitute about 16 % of the population (3,853,933).

• Efforts towards financial inclusion in Ghana has benefited the informal sector and women in general unlike the youth.

• The future of a country is its youth; ensuring a good /sustainable savings culture in Ghana depends on its youth.

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Enidaso Account & Youth Saving...our experiences & lessons learnt

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Enidaso (Hope), by youth for youth

• Savings account (custodial) for 12- 18 years developed from a comprehensive research of young people.

• Opening balance of GHC 2($1)• No charges with exception of a subsidized ATM card

and debit withdrawal booklet• Through in-school banking, banking is brought to the

door step of young people.• Young people have access to financial education.

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The Policy and legal environment

Experience Lessons learnt

Banking laws allows access to financial services for 18 years olds and above.

There is the need to iron out the laws and practice that relate to access to finance for youth. It would be apt for our banking laws to be amended to provide a legally secured framework for young people to participate in banking.

Saving products for children and youth focused only on adults saving for children.

It is possible to develop banking product with young people as the focus.

There exists no national policy on financial inclusion and the youth.

A national policy on youth financial inclusion is necessary to promote and guide interventions in youth finance.

There is a progressive effort in financial literacy for the youth led by NGOs supporting government.

Financial literacy encourages young people to build and maintain good saving habits.

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Cultural perspectives on access to finance for young people

Experience Lessons learnt

Introducing young people to money, especially savings will cause them to steal.

Introducing young people to money , especially savings makes them responsible, builds their self esteem and confidence in their future. It also inculcates in them, the saving culture.

Young people have no money to save.

Young people handle money on a regular basis. A lot of children are already undertaking informal saving (susu) despite its insecure nature.

All the needs of young people are met by parents hence there is no need to save.

Young people from low income families cater for some of their needs. Most young people tell us, they are saving to buy school supplies and for post basic education. There are a number of instances where some young people cater for all their needs including school fees. www.hfcbank.com.gh 8

A formal bank in a non formal market

The making of a youth friendly bankExperience Lessons learnt

The traditional banking operational protocols can be a challenge to youth banking. Examples;

•Documentation•Distance/ access•Cost recovery•Staff appearance•Physical layout etc

•To reach young people, there is the need to tweak operational systems to address the challenge of their age and its implications in law and legal documentation.

•Access goes beyond physical distance.

•Profit should not be the goal in banking with young people.

•Creativity and dynamism are important attributes in youth banking.

Young people are not potential or profitable customers.

Young people are our future customers; if you start with them today, they will stay with you tomorrow.

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… We believe it is ‘Possible Together’!

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THANK YOU

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