One of the challenges most banks in developing countries face is explaining the value of the many financial services and products they offer to young people just starting out. Though most young people understand the basics, they might not yet understand how it’s possible to take things a step further and start a business or save more money than they ever thought possible.
However, it would greatly benefit such financial institutions to not only educate young people about saving money and managing money well early on, but also about entrepreneurship. You could develop a lifelong relationship with a responsible customer.
There are several strategies that banking institutions can start using today to help young people understand the services that many of them can use to best utilize the income they already have coming in and expand their opportunities in the future.
Here are 3 Ways to Combine Financial Services with Education to Reach More Clients in Your Underserved Market
Use Community Groups
The Rural Financial Institutions Programme, (the RFIP) conducted a research pilot in November 2015. They were able to show that,
“engaging female community members in village financial services can be more effective than using typical customer service representatives as banking agents.”
Throughout several rural villages, there were groups of women that would gather to encourage lending, communal loan applications, helping one another financially and saving money. The heads of these organizations proved to serve as excellent banking agents because they:
Understood the needs of the members of their communities,
Understood their levels of education and financial comprehension,
Had the natural trust of the people in their communities; and
- Understood the financial products they were promoting
Engaging responsible adults that young people already trust through local social organisations is a great way to teach young people how to use banks and how to personally manage their money.
Start Teaching Them Early On
Bring your message of financial inclusion into schools and start teaching children 12-years-old and older about saving money, financial development and entrepreneurship. Starting at the age of about 12-years-old, children can understand complex topics like finance, business basics and savings. They also:
Have a thirst for knowledge,
Have an interest in their own futures and how they will make money and survive,
Have a good understanding of their family members, their levels of education and the finances of the households they come from, and
- Love their family members and communities and want to better their lives, so everyone can have more access to money and resources.
Invite Young People to Open Houses or Free Internet Use at Your Location. Give Them Access to Financial Literacy Courses
Give young people access to the internet at your branch locations or print off financial literacy course materials and distribute them. There are several free financial literacy courses available online, so this is easy to do. Though they might cover the concepts of financial literacy prevalent in currently developed nations, young people can still benefit greatly from the information. Check out:
- The College in Colorado Introduction to Money Management