Youth Breakout - Justin Sykes, Silatech
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Transcript of Youth Breakout - Justin Sykes, Silatech
Building Women-Focused Finance
#bwffconf
صلتك العالم، و تجد كي
1
Youth Financial Inclusion in MENA region
Enabling access to finance and stimulating growth oriented enterprises
Youth Financial Inclusion in MENA region
Enabling access to finance and stimulating growth oriented enterprises
Justin SykesSilatech
#bwffconf
Building Women-Focused Finance
#bwffconfYouth: The regional context
Context: The Arab World
A growing region…o Population of more than 375m in 2013o Will grow 66% to reach 700m people in 2050
…that is poor…o Nearly 80-100m people earn less than $2/day
… very young…o Two out of three people are < 30 years oldo Youth aged makeup 1/3 of the working age
population
.....where work scarce and future job creation is daunting
o 17 million youth unemployed, let alone underemployed
o 20m additional youth jobs will be needed
Entrepreneurship drives jobso Many are entrepreneurs out of
necessity, but entrepreneurs nonetheless
o Strengthening economic opportunities for disadvantaged youth through self-employment yet key challenges remain
Þ Lowest levels of financial inclusion for MENA youth globally
Þ Strong existing bias against young people by FIs and society at large
Þ Weak supporting enterprise infrastructure
Þ Weak culture of investing in youth
Building Women-Focused Finance
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MENA youth (15-24) have the world’s lowest levels of financial access:
WB Global Findex Database, Demirguc-Kunt and Klapper (2012)
Yout
h
Adul
ts
Yout
h
Adul
ts
Share saving at a formal fi-nancial institution
Share borrowing from a formal financial institution
0
10
20
30
EAPSSASALACECAMENA
Youth Financial Exclusion: The data
Building Women-Focused Finance
#bwffconfCatalysts to Achieve Scale in Youth Financial Access
• Dedicated Youth Products by MFIs
• Industry Partnerships - National Microfinance Networks - Apex Funds / Wholesale Financiers
• Correspondent Banking Models - Postal Corporations, Money Transfer Operators
• Innovation - Media - TV Programming, Radio, SMS- Competitions, Graduation Schemes, Islamic Financing
• Tech Enabled Services - Web Non-Financial and Financial - Mobile Non-financial and Financial
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Building Women-Focused Finance
#bwffconfDedicated Youth Products - Making the Business case to MFIs: The case of Morocco
Client Age (Years)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
1000
2000
3000
4000
5000
6000
7000
18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
Women Men % F
Number of Clients(column)
% Women Clients (Line)
Young Clients (20% of Total)
Moroccan MFI: Client Age Profile
Average Age is 42 years
old
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0
4,000
8,000
12,000
16,000
20,000
18-30 years 31+ years Total -Working Age
Men
Women
Making the Business case to FIs: Cont.
8,000
11,000 19,000
4%
58%
Morocco: Youth in the Working-Age Population
• Young people account for nearly two out of five people in the working age population in Morocco
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Building Women-Focused Finance
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0
50,000
100,000
150,000
200,000
250,000
18-30 years 31+ years Total
Men
Women
Making the Business case to FIs: Cont.
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MFI: Active Clients By Age & Gender
20%
80%
40,000
160,000 200,000
Active Clients Opportunity
MFI can increase the number of youth clients to 100,000 from the current 40,000
Youth could make up 40%+ of total active clients bringing MFI in line with market demographics
An incremental 60,000 clients meets a big social need – and is also a huge commercial opportunity
Over their lifetime, these clients would become loyal customers of MFI whose value could be more than $25m
Source: Silatech-Attawfiq diagnostic, July 2011
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Building Women-Focused Finance
#bwffconfDedicated Youth Products
Bodour Youth Loan Product - Morocco
Tawfir El Ghad Youth Savings - Morocco
Mashrou3i Start-up Loan Product - Yemen
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Building Women-Focused Finance
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0
5
10
15
20
25
2008 2009 2010 2011
Thousands
Active loans
Active savers
Impact: Al Amal Bank’s focus on youth has driven explosive growth
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15%
53%
0%
10%
20%
30%
40%
50%
60%
Before Silatech Support With Silatech Support
Young People Served
Youth Clients% Total
Youth Focus: Results
22,500 youth microenterprises with loans
o First time access to finance
o 2,500+ start-ups
o 65% women
o $4.8M lend out
12,500 youth with savings accounts
o Asset for low-income youth
o Used by the entire family and cross-selling occurring
o $750,000+ in deposits
Business Growth
Total Active Clients
Yemen CrisisSilatech Support
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Building Women-Focused Finance
#bwffconfIndustry Partnerships - National Microfinance Networks
20
97
5
3YMN Yemen – Industry wide promotional campaigns, training and awareness raising events for members
EMFN Egypt – capacity building, training and awareness raising events for members, tech transfer
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Building Women-Focused Finance
#bwffconf
Industry Partnerships - Apex Funds
Youth Financing Facility – Morocco
- Provision of LoCs, TA and BDS to the Moroccan MFI Sector
- Pilot Islamic Financing
Youth Financing Facility – Palestine
- Provision of LoCs, TA and BDS to the Palestinian MFI Sector
- Business Plan Competition- Advocacy Campaign- Musharaka pilot product
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Building Women-Focused Finance
#bwffconfCorrespondent Banking Models
Youth Savings – Al Barid Bank, Morocco- Innovative youth product - Incentive scheme combined with
financial literacy and social marketing- 1,800 post offices and retail outlets
Youth Savings – Al Kuraimi, Yemen - Use of 100+ branches and money
transfer agents including in remote areas
Microfinance – Kaah Express, Somalia- Transformation programme with a
priority focus on youth as clients - Use of several hundred money
transfer agents- Existing clients and fund flow via
Somali diaspora - Mobile Money via Zaad
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Building Women-Focused Finance
#bwffconfInnovation
- TV Programming- Radio Show- SMS Campaigns- Business Plan Competitions- Social Marketing- Incentive Schemes
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Building Women-Focused Finance
#bwffconfMobile – Non financial services: Tunisia case study
Najja7ni M-Employment Service
- Award winning m-learning and m-education services for Tunisian youth with services including;
- career guidance- english language learning- financial literacy- entrepreneurship advice- SMS job matching solution- referral service
- More than 800,000 users since launch in early 2013. - 68 % of subscribers use the service several times a week
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Building Women-Focused Finance
#bwffconf
Mobile – Financial services – Tunisia case study
Mobi-RoSCA mobile platform that will enable the formation informal m-savings groups using basic mobile phones. Building on established community models of rotating savings and credit this solution will enable users to access their savings groups through USSD based interactive menus and content. Transactions will be performed using Tunisiana’s MobiFlouss payment solution
Mobi-SoukVirtual marketplace enabling businesses to connect with one another and buy and sell goods and services using basic mobile phones. This market access solution enables entrepreneurs to grow thereby creating jobs and stimulating the economy. Transactions will made through Tunisiana’s MobiFlouss payment solution
Mobi-POS Platform to link retailers with producers and large distributors using mobile phones. Benefits of this platform will include more effective inventory management, merchandise orders, MobiFlouss payment and access to credit.
Mobi-MFI - Integration of MobiFlouss into Tunisian MFIs to automate loan disbursement/ repayment
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Building Women-Focused Finance
#bwffconfWeb Non-Financial Services
Ta3mal Employability Portal- Web based one stop shop for youth
looking for employment advice and support
- Support to youth seeking wage and self employment
- Self employment component includes:
- financial literacy- enterprise training - introduction to
microfinance- referral service to financial institutions with dedicated
youth products- Site live in Tunisia and Egypt, under development in Iraq and Morocco
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Building Women-Focused Finance
#bwffconfWeb – Financial Services
www.kiva.org/arabyouth
Kiva Arab Youth- Joint initiative between Silatech and Kiva to boost lending via Kiva in MENA
- Launched regionally in March 2012
- Lending to youth in 6 Arab countries
- Silatech loan matching and social marketing to increase interest and investment through Kiva
- In 18 months..
- 100,000+ lenders
- 3,600 youth borrowers
- $4.1M in funding
- Large social investments raised
- Kiva Arab Youth is evolving……
Building Women-Focused Finance
#bwffconf
Web – Financial Services Cont.
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