Youth Breakout - Justin Sykes, Silatech

Building Women-Focused Finance

#bwffconf

صلتك العالم، و تجد كي

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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


#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


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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


#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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#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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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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#bwffconfDedicated Youth Products

Bodour Youth Loan Product - Morocco

Tawfir El Ghad Youth Savings - Morocco

Mashrou3i Start-up Loan Product - Yemen

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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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#bwffconfIndustry Partnerships - National Microfinance Networks

20

97

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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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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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#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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#bwffconfInnovation

- TV Programming- Radio Show- SMS Campaigns- Business Plan Competitions- Social Marketing- Incentive Schemes

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#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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#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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#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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#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……


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Web – Financial Services Cont.

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Youth Breakout - Justin Sykes, Silatech

Economy & Finance

Transcript of Youth Breakout - Justin Sykes, Silatech