Disadvantaged, urban youth face a range of challenges in accessing financial services: long distances to reach financial service providers, financial products that are inappropriate for seasonal or intermittent work, minimum age requirements to open a bank account or obtain credit, and limited experience with financial services. In addition, financial institutions have traditionally been reluctant to serve young people because they are considered unbankable (unable to save, a high credit risk due to their engagement in less-profitable enterprises, and lacking business experience and conventional collateral).

Recognizing these challenges, the Youth Inclusive Entrepreneurial Development Initiative for Employment (YIEDIE) project commissioned a market assessment for youth financial services. As a result of its findings, Republic Boafo Microfinance Limited developed Youth in Construction savings and credit products, and later, a mobile platform for making deposits and withdrawing savings without visiting a branch. Republic Boafo also provided financial literacy training to youth as part of the entrepreneurship curriculum they received.

This brief looks at the changes in youth savings and borrowing behavior after participation in YIEDIE and shares some lessons learned.