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Changing Mindsets on Youth, Opportunity and Financial Services
Washington, D.C., 10 June 2013 /PRNewswire/ — With an estimated 1.2 billion young people between the ages of 15 and 24, the vast majority of them living in developing countries, youth are both a policy and political priority for many countries around the world. These numbers represent major development challenges, but also great opportunity.
Youth are particularly vulnerable to economic problems. They often do not have access to savings accounts, credit, or insurance due to lack of education and employment. Governments are aware of this and many are working to make it easier for young people to access financial services so they can transition smoothly into adulthood.
CGAP convened policy makers from eight countries discussed the role of financial services as part of their strategies for youth development. The participants, representing a range of different government departments including ministries of Education, Finance, Youth and Sport, as well as Central Banks, agreed that youth finance represents a largely untapped opportunity to address social issues in their countries.
Governments have an important role of changing the mindset of banks from viewing youth as a risk to viewing youth as an opportunity. “They are your future customers, future citizens,” said Tanaya Kilara, Financial Sector Analyst at CGAP. “Everything you do with youth has higher returns in the long term.”
Watch this video of policy makers answering the question, “Why youth financial services?” and find additional in-depth video interviews on policy innovation in youth financial services on CGAP’s YouTube channel.
CGAP develops innovative solutions for financial inclusion through practical research and active engagement with financial service providers, policy makers, and funders. Established in 1995 and housed at the World Bank, CGAP combines a pragmatic approach to market development with an evidence-based advocacy platform to advance poor people’s access to finance. Our global network of members includes over 35 development agencies, private foundations, and national governments that share a common vision of improving the lives of poor people with better access to finance. More at: www.cgap.org