MEDA Blog - Stories from the Field
Nicki is responsible for working through established financial and non-financial local partners and networks to stimulate economic development and promote financial inclusion for youth globally. She is also responsible for exploring new opportunities for the Youth Team and manages local and international donor relations.  Nicki currently manages Jordan USAID LENS project with MEDA supporting the access to finance for emerging MSEs (Micro, Small Entrepreneurs) and manages the youth and gender access to financial and non-financial services component on the Themar project in Yemen.

Scaling in Practice

Youth Econ Opps Conference - Nicki Post

A few weeks ago I attended the annual Global Youth Economic Opportunities Summit in Washington DC, hosted by Making Cents International. This event is always a great convening place for the who’s who in youth in development, including: funders, implementers, policy makers, youth leaders, companies, educators, and researchers. This year, the event brought together over 450 stakeholders from 50 countries to exchange knowledge, effect practice and improve the performance of youth economic opportunity programming worldwide.

MEDA’s Senior Project Manager of Youth and Financial Services, Nicki Post, with Rani Deshpandi of Save the Children and Ata Cisse of UNCDF, – panelists at the Global Youth Economic Opportunities Summit, 2015

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Looking Back At YouthInvest: Lowering Barriers and Increasing Uptake

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 Lowering Barriers and Increasing Uptake 

In the past few blogs, we have taken you through the journey that we took when developing youth-friendly financial products and services in Morocco, looking at the importance of supporting frontline MFI staff and making the business case for MFIs to offer youth financial products. But have we really accomplished anything? Are more youth accessing financial services?

Let’s begin this final blog entry on our YouthInvest Praxis Series by looking at the strategies that were deployed to facilitate access to and improve usage of our partners’ financial products and services. It was YouthInvest’s philosophy that access to financial services should never be a solitary offering, but should be paired with the appropriate training. This was one of the cornerstones of our approach, where we worked to ensure that clients were not only able to access products appropriate to their needs, but also understood the products and services they were availing.

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Praxis Series - Entry 4: Designing youth friendly products and services: An approach

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In our last blog, we looked at making the business case to MFIs to integrate financial (and non-financial) services for young people into their portfolios. One of the drivers we looked at was the need for said products to be low cost. “The cost of youth clients (and youth-friendly products) are comparable to the cost of adult clients. Loan Officers are able to integrate youth into their client portfolios without additional costs.” So how do you do that?

We developed an approach that takes 12 steps or 4 phases to build MFI capacity to offer a new youth-friendly product. In the product development (PD) cycle, we begin with phase 1 – the identify phase – to support partner MFIs in identifying the needs of their new target client. This is accomplished through targeted information gathering, analysis and conducting interviews with current clients and non-client to discern their needs and wants from a new product.

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Praxis Series - Entry 3: Is there a business case for youth services? – We think so!

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Youth under the age of 30 comprise over 50% of the global population. However, when thinking about offering financial services targeted at this age group, financial service providers (FSPs) often overlook this up-tapped reservoir, particularly in rural areas.

MEDA's YouthInvest project worked closely with Moroccan Microfinance Institutions (MFIs) – Fondation Ardi, Attadamoune and INMAA – to explore questions around the feasibility of integrating youth into their portfolios and whether this made good business sense. Through intensive discussions with MFI management and tailored frontline staff training, we discussed the benefits of working with youth, as well designing new financial credit products that would enhance the MFIs' bottom line.

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Praxis Series - Entry 2: Don’t forget the loan officers!

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Although youth between the ages of 18 - 30 often represent between 15 - 30% of total active clients in MFI portfolios, they are often labeled as undesirable and risky and many more youth applicants are turned away by Microfinance institutions (MFIs). MEDA's financial institution partners in Morocco, Attadamoune Microfinance and INMAA, wanted their staff to better engage with youth clients as they saw youth as a segment with great market potential. These innovative MFIs – with MEDA support - developed a training program to train frontline staff better address the financial needs of young clients. MEDA documented the efficacy of this training and explored any stated youth client interaction change amongst loan officers (LOs) and MFI staff in our recent Loan Officer Case Study.

The sessions within the training helped LOs and staff identify new techniques for prospecting potential youth clients and provided fundamental training on financial education (only 34% of LOs had been exposed to financial education sessions previously). The LOs added that due to the training, they would be able to improve their communication with youth, aid in increasing the share of youth in their respective portfolios, be able to better cater to youth clients, and provide them the basic information on budgeting, debt management, savings and financial negotiation (all sessions covered in financial education training).

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Praxis Series - Entry 1: Financial Capability at Work in Morocco

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Youth unemployment in countries like Morocco rank as one of the largest development obstacles. Demographic challenges, gender barriers, and education/skill mismatch are among some of the problems that youth face searching for economic opportunities. To exacerbate these challenges, Moroccan youth have limited access to financial services that can help address their unique needs. According to the World Bank, only 12.3% of youth aged 15-24 in the MENA (Middle East and North Africa) region have a formal bank account, the lowest rate in the world.[1] In this context, access to appropriate financial services has the potential to lead to many positive outcomes for youth, including a heightened capacity to manage money and build assets, as well as increased opportunities for entrepreneurship, employment and future education.YouthInvest (2008-2014) a six-year, five million dollar initiative in which MEDA partnered with leading microfinance institutions (MFIs) and Non-governmental Organizations (NGOs) with the generous support of The MasterCard Foundation; to develop innovative financial and non-financial products and services tailored to the needs of economically active youth in Morocco and Egypt.

In Morocco, young people constitute 30% of Morocco's population and one tenth of the region's total youth population[1]. This youth segment serves as a platform for opportunity and has proven through the Arab Spring that they are ripe for growth and are an important source of entrepreneurship, development and innovation. Yet in many MENA (Middle East and North Africa) countries including Morocco, these energies are not harnessed or cultivated to create active contributors to a dynamic economy. According to the New America Foundation's research on the Effectiveness of Youth Financial Education, results have emerged on the necessity of effective training programs:

 

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Why access to financial services can open doors for young entrepreneurs

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I was invited to speak briefly at Chemonics last week on what I thought was an important component to support youth enterprise development. As one of MEDA's core areas of experience, I decided to talk about providing access to appropriate financial services for youth. Here's why I think this is one crucial component to enable youth enterprise development...

Global youth dominate the ranks of the unemployed. Demographic challenges, gender barriers, education or skill mismatch, and unsafe or poorly paid work are among the many difficulties that youth face in the search for economic opportunities. This is something we saw clearly illustrated in the Arab Spring. Compounding these challenges, entrepreneurial youth typically have limited access to financial services that meet their business development needs – this can be because their loan requests are often small and too costly for Microfinance Institutions (MFIs) to administer.

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Looking Ahead: The Future of Economic Strengthening

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This blog series was sent courtesy of Microlinks, part of the Feed the Future Knowledge-Driven Agricultural Development project. Its contents were produced under United States Agency for International Development (USAID) Cooperative Agreement No. AID-OAA-LA-13-00001. The contents are the responsibility of FHI 360 and its partner, the International Rescue Committee, and do not necessarily reflect the views of USAID or the United States GovernmentPromising Practices

In 2008, the U.S. Agency for International Development (USAID) defined economic strengthening (ES) as "[t]he portfolio of strategies and interventions that supply, protect, and/or grow physical, natural, financial, human, and social assets aimed at improving vulnerable households cope [sic] with the exogenous shocks they face and improve their economic resilience to future shocks." That is a tall order; however, we are seeing an increasing demand for holistic programming to respond to the needs of orphans and vulnerable children (OVC). A growing body of evidence points to risky behavior by orphans and vulnerable children seeking to meet immediate livelihood needs, such as accepting "gifts" from older males in return for sexual favors and migration.

Here, we can begin to understand what the problem is. We know there is a call for an innovative "portfolio of strategies and interventions" aimed at improving vulnerable households' ability to cope with shocks, but what are they? What evidence is there to prove that ES models and approaches even work? Well, the jury is still out; however, we will explore a few areas that have seen promising practices for OVC and where these ES trends may take programming in the future.

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To Partner or Not to Partner When Implementing Youth Financial Programs

Forging the right partnerships between Financial Service Providers (FSPs), Youth Serving Organizations (YSOs), and other key stakeholders, such as schools and local government, can be a key factor to successfully and sustainably serving youth clients.However, partnerships are not always the answer.This blog explores whether or not to partner, as well as the nature of partnerships themselves, and is targeted to FSPs and YSOs, which deliver youth savings programs.

By Nicki Post and Ryan Newton (Women's World Banking)

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