This course will prepare microfinance practitioners to understand and provide financial and non-financial services to rural and urban youth. The course will introduce participants to best practices for serving youth, help them to understand the differences between rural and urban youth financial service provision, and detail specific products and service delivery models. To ground the information in concrete examples, the training will also involve a live case study component, where participants will be able to engage with representatives of financial institutions in the MENA region that are currently offering financial services to youth.

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Designing and Delivering
Youth Inclusive Financial
Services
with a special focus on rural youth
Timothy H. Nourse:
Making Cents International
Sponsored by the International Fund for Agricultural Development

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Social Enterprise that increases
economic opportunity and
financial inclusion worldwide
Provides training and capacity
building technical assistance to
international and local institutions
Focuses on youth, women,
farmers, and growing enterprises
BuildsYouth Economic
Opportunity field through
conferences, research, and
hosting of on-line learning
platform.
Making Cents

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International Fund for
Agricultural Development
IFAD is dedicated to eradicating rural poverty in developing
countries
IFAD provides loans and grants to governments, and is involved in
project design and direct implementation support
Key areas of IFAD’s investments are rural financial services,
agricultural development, irrigation, livestock, markets and
infrastructure
Since its inception, the Fund has:
Mobilized around USD 21.9 billion in co-financing from domestic sources, in
addition to IFAD’s contribution of about USD 14.7 billion in loans and grants,
with the current total investment reaching USD 13 billion
Supported 924 programmes and projects in 119 countries, including 267
projects in 98 countries in the current portfolio
Empowered over 400 million people to break out of poverty
IFAD funded the RYEE program – whose case studies you’ll be
learning about today

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Silatech
Silatech is a regional social initiative that works to create jobs and
expand economic opportunities for young Arabs.
Silatech promotes large-scale job creation, entrepreneurship, access
to capital and markets, and the participation and engagement of
young people in economic and social development.
Since being founded in 2008, Silatech has financed over 100,000
youth-owned businesses, and created or sustained over 180,000
jobs.
Silatech currently has programs in 15 Arab countries, including
Algeria, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Palestine,
Qatar, Saudi Arabia, Somalia, Sudan, Syria,Tunisia andYemen.
For more information, please visit www.silatech.com.
IFAD co-funded the RYEE program – whose case studies you’ll be
learning about today

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Agenda
Timing Session
9:00-9:30 Introduction to objectives of course and RYEEP
9:30-10:00 Youth – their financial and non-financial needs,
differentiated by segment and geography (urban/rural)
10:00-10:30 General Principles for servingYouth
10:30-11:00 Product Design Process
11:00-11:30 Break
11:30-12:30 Financial Services Product Development
12:30-1:30 Lunch
1:30-2:30 Non-Financial Services Product Development
2:30-3:00 Special Case –Value Chain Financing
3:00-3:30 Break
3:30-4:15 Case Study
4:15-4:30 The Future ofYFS

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Bringing out the
Youth in You
First job
How old were you?
What was the job?
How much money did you earn?
First time you visited a financial
institution
How old were you?
What were you there to do?
What was your impression of the FI?

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Financial Services and Youth:
Financial services help youth
to:
Build assets
Contribute to the household
Develop positive habits and
skills
Facilitate education and
employment
Maintain employment

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Youth Segments and
Demand for FS
Youth Segment
Demand for Financial Services
Savings Credit Insurance
Early adolescence
(Ages 12-18)
Late adolescence
(Ages 18-24)
Young Adulthood
(Ages 25-30…)

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Youth Segments and
Demand for FS
Youth Segment
Demand for Financial Services
Savings Credit Insurance
Early adolescence
(Ages 12-18)
Moderate Low NA
Late adolescence
(Ages 18-24)
High Moderate Low
Young Adulthood
(Ages 25-30…)
High High Moderate
* Age range is contextual
** Parenthood accelerates transition toYoung Adulthood
***Gender also impacts segments

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Rural Youth
More a question of
underemployment, then
unemployment
Little access to land
More traditional roles
Lower educational levels
Stronger community structures

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Current State of
FS Access for youth
• Youth are 33% less likely to have an account at a
formal financial institution
• Youth are 40% less likely to have saved at a formal
financial institution

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Activity:
What’s holding us back?
Discuss in small groups the opportunities and challenges of
providing financial services to youth at the:
Client Level
Institutional Level
Enabling Environment and Policy level
How are these opportunities and challenges affected by trying to
serve rural youth?
Ask one person to take notes and be prepared to report out.
Level
Questions
Opportunity? Challenge? Rural implications?
Client
Institutional
Enabling Environment

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Key Issues – Client Level
Opportunities
Youth demand FS to
manage risks, plan for
the future, and transition
through life phases
Technologically savvy.
Parental/community
support
Challenges
• Perception that FIs are not for
them
• Accessing FIs
• Financial Illiteracy
• Lower volumes demanded

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Key Issues – Financial Institutions

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Key Issues – Enabling
Environment
Challenges
Age of Majority
Identification and
documentation requirements
Inadequate consumer
protection regimes
Opportunities
Growing interest in serving
youth among central banks

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Rural Finance Issues
Client:
Seasonality of income and cash
flows
Seasonal migration
Lack of trust in outside institutions
Institutional:
Agricultural activities dependent
on weather and markets
Geographic dispersion of
populations
Poor infrastructure
Enabling Environment:
• Government subsidies/agricultural
policies may help or hinder ag.

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1. Involve youth In market research and
product development
2. Develop products and services that
reflect diversity of youth
3. Ensure that youth have safe and
supportive spaces
4. Provide or link youth to
complementary non-financial services
5. Focus on core competencies through
partnerships
6. Involve community
7. Establish Institutional Readiness
Principles Developed in concert with:
Emerging Guidelines for
Youth-Inclusive FS

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The Product Development
Cycle*
*SourceWWB
*Source:WWB

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*Source CGAP
Developing the
Business Case
Source: CGAP

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Market Research
Recruit a diverse team, including
Youth experts
Use process oriented activities
that help youth process and
depersonalize data
Mix of data gathering techniques
For customers, conduct research
at household level to determine
youth and parent views
Use research to segment market
Young People’s Capacity to Co-
Invest
The use of “money flow” or “asset
mapping” focus group tools are an
effective way of gaining insight into
the kinds of financial and non-financial
assets young people manage. A
microfinance institution in Morocco
that was interested in developing
livelihood programming for youth was
amazed to see the multiple sources of
funds that passed through “poor”
young people’s hands.

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Roll Out and Evaluation
Roll Out:
Adjust product based on pilot
Similar process to pilot plan,
but on scale of full FI
Preparation, training and
marketing critical to success
Evaluation:
On-going analysis of business
case
Direct profit/loss
Cross-selling
Loyalty
Demonstrate CSR
Impact on clients
Financial knowledge
Financial Behavior
Financial Status

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Some Successful Products
Hatton National Bank
• School banking program
• 503,000 youth savers
Equity Bank – Kenya
• Business loan and youth savings product
• 74,000 loan clients, 140,000 savers
Xac Bank – Mongolia
• Adolescent girl savings account
• 8,000 clients

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Rural Youth Economic Empowerment
Project
3Year Learning Project Funding by IFAD and Silatech
5 pilot projects in 4 countries
 By project end – over 20,000 youth served with financial services
and almost 15,000 with non-financial services
Country Local Partner
(Institutional Type)
Financial Instrument Non-Financial Instrument
Egypt Plan Egypt
(NGO)
Savings and Credit
Groups
Entrepreneurship and life skills training
offered through Savings Groups
Yemen
Al Amal Bank
(Microfinance Bank)
Enterprise Lending (for
existing businesses)
Financial literacy, entrepreneurship and
technical training offered by NGO partners
Morocco
Al Barid Bank
(Postal Bank)
Individual Savings
Product
Financial literacy training offered through
mass media and face-to-face training
Tunisia
Microcred
(Microfinance Company)
Enterprise Lending (for
start-up businesses)
Entrepreneurship and business
management training offered by NGO
partners
Tunisia
Pro-Invest
(Private Company)
Value Chain Finance
(Trade Credit)
Value Chain Development,
Entrepreneurship and financial literacy
training offered through SMS

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The 9 “P”s of Product Design
1. Product:The terms and conditions of the loan or savings product. (the loan
tenor, repayment frequency, application documentation, collateral requirements
etc.)
2. Price:The cost of the product to the end user, set at a level to cover FSP costs
(includes interest rate, fees, penalties, transaction costs, etc.)
3. People:The management and training of the full range of people involved in
delivering the product (human resources; hiring, training, performance
monitoring, etc.)
4. Promotion: How the product is presented to the client (marketing,
advertising, public relations, including formats and delivery channels)
5. Positioning:Competitive advantage or niche in relation to other
products/institutions as perceived by the target customer
6. Place:The product distribution and delivery channels (branches, outreach
workers or field agents,ATMs, mobile units, phones)
7. Physical evidence:The paper or digital requirements for usage (passbook,
promissory note, etc.)
8. Process: How the product is delivered (systems, manuals, operating
procedures, forms, queues, turnaround time)
9. Preparation: Design of non-financial service package to enable the client to
use the product most effectively (e.g. financial literacy, business training; links to
other resources)

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RYEEP 9”P”s Case Studies
Each RYEEP representative will:
Provide an overview of their
institution
Describe their business case
Describe the market research
and product development
process they followed
Present their product as per the
9P model
Take questions

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Linking Activity
Each pair receives 4 tiles
Connect your 4 tiles to make a
square
Once connected; find another
pair that has made a square and
combine them into a square or
rectangle (you may need to
rearrange your pieces);
Once connected, find another
pair that has made a square and
connect them and combine
them into a square or rectangle
(you may need to rearrange
your pieces)
If your stuck – you can trade
pieces with the facilitator

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The 11 “S”s of Curriculum and
Training Delivery System Design
1. Student: Profile of learners, literacy levels, and learning preferences
2. Setting: Conditions, timing, and pacing of delivery
3. Scale:Content and time to deliver
4. Sequence:Other curricular content before or after this training
5. Scope: Knowledge, Skills, andAttitudes contained in curriculum
6. Style: Learning/teaching methodology
7. Skill-set: Skills needed to deliver, supervise, and coordinate the rollout of training program
8. Sale: How much of the organization, marketing, funding, and delivering can be cost recovered
9. Supplies: Supporting materials (training guides, TOT guides, participant takeaways, facilitation
materials, equipment/ technology, M&E tools)
10. Systems: Delivery system, monitoring, and capacity building
11. Success:Assessment of the reach, depth, and quality of outcomes and impacts

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RYEEP 11”S” Case Studies
In each group, the RYEEP
representative will:
Describe the findings from their
market research that related to
knowledge, skills or attitudes
Describe the NFS product
development and piloting
process
Present the NFS as per the 11S
model
Take Questions

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RYEEP Lessons Learned
Serving rural youth effectively will require both youth
and rural adaptations.
IntegrateYFS into rural strategies..
Use different approaches for different age groups.
Target NFS carefully and engage partners to meet
remaining needs.
Subsidize start-ups.
Engage new partners and innovative technologies.

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Sample content page
Bulleted list on left Bulleted list on right

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YFS–RemainingChallenges
andPotentialSolutions
Challenges
 The Business Case
 Financing Programs that Build
Financial Capability
 Developing regulations that
balance access with protection
 Developing a suite of products
that “grow” as youth do
 Scaling up products
Solutions
Behavioral economic models
providing promising
approaches
Technology may be enabler,
though how to use it effectively
for youth remains a question
Mainstreaming youth into
financial service provision
strategies for households
provides promising strategy

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Additional Resources
Youtheconomicopportunities.org
GlobalYouth Economic
Opportunity Conference
(www.youthEOsummit.org)
September 28-30, 2016

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Thank You!
Timothy H. Nourse
President
Making Cents International