Financial market urged to target youth savings business
Friday, August 1, 2014
A global poverty alleviation group has come up with suggestions on how financial services providers in developing countries can tap into the huge youth savings market.
The Consultative Group to Assist the Poor (CGAP), a global partnership of 34 leading organisations that seek to advance financial inclusion, said in its latest report that with almost half the world’s population today under the age of 25, youth finance represented a largely untapped business opportunity.
“Despite this potential, there are surprisingly few examples of providing youth savings in a profitable manner. Few financial service providers, especially in developing countries with large young populations, target youth specifically as a segment,” said CGAP, which is based at the World Bank in Washington.
Its new report examines the business considerations for financial service providers offering savings products to young people. The Business Case for Youth Savings: A Framework analyses the different factors that financial service providers need to consider when entering or being active in the youth savings market and how to make it profitable.