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

1. "Inculcating savings culture among the
Ghanaian youth; An insight into HFC
Enidaso product"
Joint presentation by HFC Bank &
YouthSave Project
1www.hfcbank.com.gh

2. 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.
2www.hfcbank.com.gh

3. ...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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4. 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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5. Enidaso Account & Youth Saving
...our experiences & lessons learnt
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6. 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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7. 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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8. 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

9. A formal bank in a non formal market
The making of a youth friendly bank
Experience 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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10. … We believe it is ‘Possible
Together’!
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11. THANK YOU
11www.hfcbank.com.gh