Advertisement

School Banking as a Strategy for Strengthening Youth Economic Participation in Developing Countries: Lessons from YouthSave

  • Lissa Johnson
  • YungSoo Lee
  • Githinji Njenga
  • Joseph Kieyah
  • Isaac Osei-Akoto
  • Catherine Rodriguez Orgales
  • Sharad Sharma
  • Gina Agnes Chowa
  • David Ansong
  • Fred Ssewamala
  • Margaret Sherraden
  • Michael Sherraden
  • Li Zou
Article
  • 42 Downloads

Abstract

Schools are the primary settings where both education and health services are delivered to youth in developing countries. A similar approach can be used for financial inclusion. Financial inclusion, in turn, can lead to positive youth development outcomes in education and health. But a critical first step is financial access. This study examines how schools can serve as the setting for financial education and financial services, increasing youth economic participation. Research in four developing countries finds an increase in youth savings account uptake when financial institutions provide opportunities at schools for youth to receive financial education, open savings accounts, and make deposits. Findings are that school banking can overcome some of the regulatory, geographic, and information barriers that limit youth access to safe and affordable savings services. Marginalized youth, including those who are low-income and females, participate as much as other youth. We conclude that schools can play an important role in increasing youth economic participation, a positive step toward economic strengthening and overall well-being. As a possible implication, school-based health programming might consider integrating school banking features, such as opening savings accounts, into future program design and implementation.

Keywords

Youth School banking Savings Health Financial inclusion 

Notes

Acknowledgments

The Center for Social Development (CSD) at Washington University sincerely thanks our research partners in YouthSave: Universidad de los Andes in Colombia, Institute for Statistical, Social and Economic Research (ISSER) at the University of Ghana, Kenya Institute for Public Policy Research and Analysis (KIPPRA), and New ERA in Nepal. Without the exceptional skills and hard work of these excellent research partners, this study would not be possible.

We also thank the participating FIs: Banco Caja Social (BCS) in Colombia, HFC Bank in Ghana, Kenya Post Office Savings Bank (Postbank) in Kenya, and Bank of Kathmandu Ltd. (BOK) in Nepal. These FIs not only provided the financial products and services but also graciously accommodated and supported the research agenda in YouthSave.

We also thank the consortium partnership in YouthSave. We are grateful to Save the Children (SC) for managing implementation in the field and facilitating bank collaborations, New America for their work on stakeholder engagement, and the Consultative Group to Assist the Poor (CGAP) for their attention to the business case.

We thank members of the YouthSave Research Advisory Council for their guidance and advice and especially Mark Schreiner for his assistance in developing estimated poverty rates. We appreciate the guidance of the YouthSave Expert Advisory Board for their implementation expertise. And most important of all, CSD thanks The MasterCard Foundation for their vision, dedication, partnership, and support in YouthSave.

Findings from this school banking paper was previously presented at:

Youth financial inclusion in developing countries: the potential for school banking. Presentation at the Global Perspectives on Adolescent Health and Economic Strengthening Conference: Lessons from Sub-Saharan Africa, May 12, 2016.

Funding

This study was funded by Mastercard Foundation via Save the Children Subgrant No. 12401008a.

Compliance with Ethical Standards

Informed Consent

All procedures involving human participants were conducted in accordance with the ethical standards of the institution and/or national research committees, the 1964 Helsinki declaration, and its later amendments, or with comparable ethical standards. Informed consent was obtained from the youth and guardian (if the youth was a minor) for collection of identifiable data.

Conflict of Interest

The authors declare that they have no conflict of interest.

References

  1. Aggarwal, S., & Klapper, L. (2013). Designing government policies to expand financial inclusion: evidence from around the world. The Indian School of Business. http://www.isb.edu/faculty/shilpa_aggarwal/files/shilpa-aggarwal-leora-klapper.pdf. Accessed 29 January 2016.
  2. Alliance for Financial Inclusion. (2011, September 30). Maya Declaration urges financial inclusion for world’s unbanked populations [Press release]. http://www.afi-global.org/news-events/press-releases/maya-declaration-urges-financial-inclusion-worlds-unbanked-populations. Accessed 8 November 2017.
  3. Alliance for Financial Inclusion. (2015). The 2015 Maya declaration progress report: Commitments into action. http://www.afi-global.org/publications/1902/The-2015-Maya-Declaration-Report-Commitments-into-Action. Accessed 8 November 2017.
  4. Berry, J., Karlan, D., & Pradhan, M. (2015). The impact of financial education for youth in Ghana. Working Paper No. 21068. Cambridge, MA: National Bureau of Economic Research. http://www.nber.org/papers/w21068. Accessed 8 November 2017.
  5. Beverly, S., Clancy, M., & Sherraden, M. (2016). Universal accounts at birth: results from SEED for Oklahoma Kids. St. Louis, MO: Washington University: Center for Social Development. https://csd.wustl.edu/Publications/Documents/RS16-07.pdf. Accessed 8 November 2017.
  6. Billimoria, J., Penner, J., & Knoote, F. (2013). Developing the next generation of economic citizens: financial inclusion and education for children and youth. Enterprise Development and Microfinance, 24(3), 204–217  https://doi.org/10.3362/1755-1986.2013.020.CrossRefGoogle Scholar
  7. Brooker, S., Marriot, H., Hall, A., Adjei, S, Allan, E., Maier, C.,. .. Magingo, J. (2001). Community perception of school-based delivery of anthelmintics in Ghana and Tanzania. Tropical Medicine and International Health, 6(12), 1075–1083.  https://doi.org/10.1046/j.1365-3156.2001.00806.xCrossRefGoogle Scholar
  8. Bundy, D., Schaeffer, S., Jukes, M., Beegle, K., Gillespie, A., Drake, L.,. .. Wright, C. (2006). School-based health and nutrition programs. In D. T. Jamison, J. G. Breman, A. R. Measham, G. Alleyne, M. Claeson, D. B. Evans, … P. Musgrove (Eds.), Disease control priorities in developing countries (pp. 1091–1108). New York, NY: Oxford University Press.Google Scholar
  9. Center for Financial Inclusion at Accion. (2014), May. The Center for financial inclusion. https://centerforfinancialinclusionblog.files.wordpress.com/2014/05/cfi-one-pager-may-2014.pdf. Accessed 8 Nov 2017.
  10. Centers for Disease Control and Prevention. (2015). Expanding the coordinated school health approach. https://www.cdc.gov/healthyschools/wscc/approach.htm. Accessed 8 November 2017.
  11. Child & Youth Finance International. (2014). A chance for change: child and youth finance and the post-2015 agenda. http://www.childfinanceinternational.org/resources/meetings/201405-a-chance-for-change-summary-report.pdf. Accessed 8 November 2017.
  12. Child Protection in Crisis, Livelihoods and Economic Strengthening Task Force. (2011). The impacts of economic strengthening programs on children: A review of the evidence. http://www.cpcnetwork.org/wp-content/uploads/2014/04/CPC-Economic-Strengthening-Evidence-Review.pdf. Accessed 8 November 2017.
  13. Chowa, G.A.N., Ansong, D., Masa, R., Despard, M., Osei-Akoto, I., Richmond, A.-A.,. .. Sherraden, M. (2012). Youth and saving in Ghana: a baseline report from the YouthSave Ghana Experiment (CSD Research Report No. 12–56). St. Louis, MO: Washington University, Center for Social Development. https://csd.wustl.edu/publications/documents/ghana_baseline_report_final.pdf. Accessed 8 Nov 2017.
  14. Chowa, G.A.N., Masa, R., Osei-Akoto, I., Despard, M., Wu, S., Hughes, D., Sherraden, M. (2015). Impacts of financial inclusion on youth development: findings from the Ghana YouthSave experiment (CSD Research Report No. 15–35). St. Louis, MO: Washington University, Center for Social Development, 2010. https://csd.wustl.edu/Publications/Documents/RR15-35.pdf. Accessed 8 November 2017.
  15. Curley, J., Ssewamala, F., & Han, C.-K. (2010). Assets and educational outcomes: Child Development Accounts (CDAs) for orphaned children in Uganda. Children and Youth Services Review, 32(11), 1585–1590.  https://doi.org/10.1016/j.childyouth.2009.07.016.CrossRefGoogle Scholar
  16. Demirgüç-Kunt, A., & Klapper, L. (2013). Measuring financial inclusion: explaining variation in use of financial services across and within countries. Brookings Papers on Economic Activity, Spring. http://www.brookings.edu/~/media/Projects/BPEA/Spring%202013/2013a_klapper.pdf. Accessed 8 November 2017.
  17. Deschesnes, M., Martin, C., & Hill, A. J. (2003). Comprehensive approaches to school health promotion: How to achieve broader implementation? Health Promotion International, 18(4), 387–396  https://doi.org/10.1093/heapro/dag410.CrossRefGoogle Scholar
  18. Deshpande, R. (2015). Design and delivery of youth savings accounts: five lessons from YouthSave. In YouthSave Consortium (Ed.), YouthSave 2010–2015: Findings from a global financial inclusion partnership (39–48). Washington, DC: YouthSave Consortium.Google Scholar
  19. Ehrbeck, T. (2015, September 28). Why is financial inclusion so high on the development agenda? [Web log post]. http://www.huffingtonpost.com/tilman-ehrbeck/why-is-financial-inclusio_b_8199320.html. Accessed 8 November 2017.
  20. Hoelscher, D. M., Feldman, H. A., Johnson, C. C., Lytle, L. A., Osganian, S. K., Parcel, G. S.,. .. Nader, P. R. (2004). School-based health education programs can be maintained over time: Results from the CATCH institutionalization study. Preventive Medicine, 38(5), 594–606.  https://doi.org/10.1016/j.ypmed.2003.11.017CrossRefGoogle Scholar
  21. Huang, J., Sherraden, M., Kim, Y., & Clancy, M. (2014a). Effects of Child Development Accounts on early social-emotional development: an experimental test. JAMA Pediatrics, 168(3), 265–271  https://doi.org/10.1001/jamapediatrics.2013.4643.CrossRefGoogle Scholar
  22. Huang, J., Sherraden, M., & Purnell, J. (2014b). Impacts of Child Development Accounts on maternal depressive symptoms: evidence from a randomized statewide policy experiment. Social Science & Medicine, 112, 30–38.  https://doi.org/10.1016/j.socscimed.2014.04.023.CrossRefGoogle Scholar
  23. Huang, J., Kim, Y., Sherraden, M., & Clancy, M. (2017). Heterogeneous effects of Child Development Accounts on savings for children’s education. Journal of Policy Practice, 16(1), 59–80.  https://doi.org/10.1080/15588742.2015.1132402.CrossRefGoogle Scholar
  24. International Monetary Fund. (2012). World economic outlook database (April 2012 ed.). https://www.imf.org/external/pubs/ft/weo/2012/01/weodata/index.aspx. Accessed 8 November 2017.
  25. Johnson, L., Lee, Y., Ansong, D., Sherraden, M. S., Chowa, G. A. N., Ssewamala, F.,. .. Saavedra, J. (2015). Youth savings patterns and performance in Colombia, Ghana, Kenya, and Nepal (YouthSave Research Report No. 15-01). St. Louis, MO: Washington University, Center for Social Development. https://csd.wustl.edu/publications/documents/rr15-01.pdf. Accessed 8 Nov 2017.
  26. Karlan, D., Ratan, A., & Zinman, J. (2014). Savings by and for the poor: a research review and agenda. Review of Income and Wealth, 60(1), 36–78.  https://doi.org/10.1111/roiw.12101.CrossRefGoogle Scholar
  27. Lee, Y., Johnson, L., Ansong, D., Osei-Akoto, I., Masa, R., Chowa, G. A., & Sherraden, M. (2017). Taking the bank to the youth: impacts on saving from the Ghana YouthSave experiment. Journal of International Development.  https://doi.org/10.1002/jid.3315.
  28. Loke, V., & Sherraden, M. (2009). Building assets from birth: a global comparison of Child Development Account policies. International Journal of Social Welfare, 18(2), 119–129.  https://doi.org/10.1111/j.1468-2397.2008.00605.x.CrossRefGoogle Scholar
  29. Minors over 10 years of age can open and operate bank independent savings bank accounts: Reserve Bank of India. (2014 May 6). The Economic Times. http://economictimes.indiatimes.com/industry/banking/finance/banking/minors-over-10-years-of-age-can-open-and-operate-bank-independent-savings-bank-accounts-reserve-bank-of-india/articleshow/34742816.cms. Accessed 8 November 2017.
  30. Mondal, U., Hossain, M. S., & Khan, M. A. M. (2015). School banking: a new idea of banking operation in Bangladesh. International Journal of Science and Research, 4(11), 1926–1931.Google Scholar
  31. Organization for Economic Cooperation and Development. (2014). Colombia (education at a glance: OECD Indicators 2014 Country Note). http://www.oecd.org/edu/Colombia_EAG2014_CountryNote_ENG.pdf. Accessed 8 November 2017.
  32. Paul-Ebhohimhen, V. A., Poobalan, A., & Van Teijlingen, E. R. (2008). A systematic review of school-based sexual health interventions to prevent STI/HIV in sub-Saharan Africa. BMC Public Health, 8.  https://doi.org/10.1186/1471-2458-8-4.
  33. Porter, G., Blaufuss, K., & Owusu Acheampong, F. (2007). Youth, mobility and rural livelihoods in sub-Saharan Africa: perspectives from Ghana and Nigeria. Africa Insight, 37(3), 420–431.  https://doi.org/10.4314/ai.v37i3.22500.Google Scholar
  34. Rodriguez, C., & Saavedra, J. E. (2016). Nudging youth to develop savings habits: Experimental evidence using SMS messages. (CSD Working Paper No.16-19). Washington University, Center for Social Development. https://csd.wustl.edu/Publications/Documents/WP16-19.pdf. Accessed 8 Nov 2017.
  35. Schreiner, M. (2011). A simple poverty scorecard for Kenya. http://www.microfinance.com/English/Papers/Scoring_Poverty_Kenya_EN_2005.pdf. Accessed 8 November 2017.
  36. Schreiner, M. (2012). A simple poverty scorecard for Colombia. http://www.microfinance.com/English/Papers/Scoring_Poverty_Colombia_2009_EN.pdf. Accessed 8 November 2017.
  37. Schreiner, M. (2013). A simple poverty scorecard for Nepal. http://www.microfinance.com/English/Papers/Scoring_Poverty_Nepal_2010_EN.pdf. Accessed 8 November 2017.
  38. Schreiner, M., & Woller, G. (2010). A simple poverty scorecard for Ghana. http://www.microfinance.com/English/Papers/Scoring_Poverty_Ghana_EN_2005.pdf. Accessed 8 November 2017.
  39. Sherraden, M. S. (2013). Building blocks of financial capability. In J. Birkenmaier, M. S. Sherraden, & J. Curley (Eds.), Financial capability and asset development: research, education, policy, and practice (pp. 3–43). New York, NY: Oxford University Press.Google Scholar
  40. Ssewamala, F. M., & Ismayilova, L. (2009). Integrating children’s savings accounts in the care and support of orphaned adolescents in rural Uganda. Social Service Review, 83(3), 453–472.  https://doi.org/10.1086/605941.
  41. Ssewamala, F. M., Han, C.-K., & Neilands, T. B. (2009). Asset ownership and health and mental health functioning among AIDS-orphaned adolescents: findings from a randomized clinical trial in rural Uganda. Social Science Medicine, 69(2), 191–198  https://doi.org/10.1016/j.socscimed.2009.05.019.
  42. Ssewamala, F. M., Ismayilova, L., McKay, M., Sperber, E., Bannon, W., Jr., & Alicea, S. (2010). Gender and the effects of an economic empowerment program on attitudes toward sexual risk-taking among AIDS-orphaned adolescent youth in Uganda. Journal of Adolescent Health, 46(4), 372–378.  https://doi.org/10.1016/j.jadohealth.2009.08.010.
  43. U.S. Department of the Treasury, Office of the Comptroller of the Currency, Community Affairs Department. (2017). School-based bank savings programs: bringing financial education to students (Community Development Insights Report). http://www.occ.gov/topics/community-affairs/publications/insights/insights-school-based-bank-savings-programs.pdf. Accessed 8 November 2017.
  44. United Nations Population Fund. (2014). The power of 1.8 billion. Adolescents, youth and the transformation of the future (UNFPA State of World Population 2014 Report). http://www.unfpa.org/sites/default/files/pub-pdf/EN-SWOP14-Report_FINAL-web.pdf. Accessed 8 November 2017.
  45. Wiedrich, K., Collins, J. M., Rosen, L., & Rademacher, I. (2014). Financial education and account access among elementary students: findings from the Assessing Financial Capability Outcomes (AFCO) youth pilot. Washington, DC: Corporation for Enterprise Development.Google Scholar
  46. World Bank. (2017). World development indicators. http://data.worldbank.org/data-catalog/world-development-indicators. Accessed 8 November 2017.
  47. World Health Organization. (2009). Promoting adolescent sexual and reproductive health through schools in low income countries: an information brief (Publication No. WHO/FCH/CAH/ADH/09.03). Geneva, Switzerland: WHO Press.Google Scholar
  48. World Health Organization. (2017). What is a health promoting school? http://www.who.int/school_youth_health/gshi/hps/en/. Accessed 8 November 2017.
  49. YouthSave Consortium. (2015). YouthSave 2010–2015: findings from a global financial inclusion partnership. Washington, DC: YouthSave Consortium.Google Scholar
  50. Zou, L., Tlapek, S. M., Njenga, G., Appiah, E., Opai-Tetteh, D., & Sherraden, M. S. (2015). Facilitators and obstacles in youth saving: perspectives from Ghana and Kenya. Global Social Welfare.  https://doi.org/10.1007/s40609-015-0028-y.

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Lissa Johnson
    • 1
  • YungSoo Lee
    • 2
  • Githinji Njenga
    • 3
  • Joseph Kieyah
    • 3
  • Isaac Osei-Akoto
    • 4
  • Catherine Rodriguez Orgales
    • 5
  • Sharad Sharma
    • 6
  • Gina Agnes Chowa
    • 7
  • David Ansong
    • 7
  • Fred Ssewamala
    • 1
  • Margaret Sherraden
    • 8
  • Michael Sherraden
    • 1
  • Li Zou
    • 1
  1. 1.The Brown School of Social WorkWashington University in St. LouisSt. LouisUSA
  2. 2.Incheon National UniversitySeoulSouth Korea
  3. 3.Kenya Institute for Public Policy Research and Analysis (KIPPRA)NairobiKenya
  4. 4.Institute for Statistical, Social and Economic ResearchUniversity of GhanaAccraGhana
  5. 5.Universidad de Los AndesBogotaColombia
  6. 6.New ERAKathmanduNepal
  7. 7.School of Social WorkUniversity of North CarolinaChapel HillUSA
  8. 8.School of Social WorkUniversity of Missouri-St. LouisSt. LouisUSA

Personalised recommendations