AIM Youth Advancing Integrated Microfinance for Youth Freedom

AIM Youth Advancing Integrated Microfinance for Youth Freedom from Hunger Ecuador Counting on Technology to Deliver Financial Services to Youth: Lessons and Applications 2012 Global Youth Economic Opportunities Conference

Brief Project Background Project Description: Youth between the ages of 13 to 24 will recieve integrated services of both fianncieal educaton and financial services Goal: Improve youth’s ability to manage money and increase their use of financial services and as a result strengthen their future economic oportunities Timeframe: December 2009 – June 2013 Implementation countries: Ecuador and Mali Proposed Outreach: 15, 000 youth in Ecuador and 22, 000 youth in Mali

Product Development In Ecuador • Financial Product: Youth Individual Savings Account thru local cooperatives designed with youth’s preferences and needs • Financial Education: Educational Sessions for youth combining financial goal setting, money management, and information about and how to use the financial products

Technologies In Use • Smart Phones • Debit Cards • Social Networks • SMS Messaging (in development) • Servipagos, payment network (in development)

Let’s See it in Action Short Video of Youth making a deposit thru a Smart phone

Cooperative San Jose • Using Smart phones to receive deposits in the field from youth, 1 year of implementation • Taking advantage of this tool to employ cross sales with the family in multiple accounts • Results showing youth have higher average balances, higher than expected • Cooperative staff cite ease of use, clients feel personalized service and aids in the sale of products as well as average balances in various savings accounts

Cooperative San Miguel de los Bancos • Using Smart phones to receive deposits in the field from youth, 4 months implementation • Connected wireless to a printer which provides receipts for youth and the institution, whole transaction is less than a minute • Future plans to use this technology to open accounts in the field so that youth receive personalized attention near them without having to travel • Connection in remote areas thru cell phone reception to the internet and can store transactions if connection is lost • Takes advantage of the time (for youth and staff) for deposits after the educational session

Cooprogreso • Debit cards for Youth • For youth over 18 years old with access to the cooperatives ATM network as well as nationwide cooperative network • Social Networking • Facebook page specifically for the Yo Soy product with information, promotions and communication • SMS Messaging (In development) • Messages will provide financial education reinforcement messages, savings reminders and promotions

Costs Smart Phone technology • $150 Phone and $500 printer and monthly fee-internet connection • IT Development costs • Additional Insurance to transport cash SMS • SMS technology IT Development integrated into the MIS and can be used by staff at any time to send SMS to clients and staff creates the messages • No additional be message fee Debit Cards • $5 Fee to client

Challenges • Choosing appropriate technology that is both attractive to youth and manageable for the organization • Regulatory concerns on whether technology acts as a bank branch • Technological Development and it’s integration into the product development • Sustainability of the different technological options • Concerns about field officers carrying cash in the field and how to mitigate risk