SchoolBank Developing the next generation of economic citizens - - PowerPoint PPT Presentation

January 2015

SchoolBank – Developing the next generation of economic citizens

The objective of the program

Increase financial inclusion through a school adoption program Impart Economic Citizenship Education(ECE) through the schools To develop the next generation

• f economic

citizens

+

1 2

Each bank branch will adopt a school in its vicinity to

• pen bank accounts and
• ffer transaction support

Schoolteachers are trained to teach the Economic Citizenship Curriculum in each school

SchoolBank model delivers three basic services to the children and youth

• Withdrawal and deposit facility
• Transfer of cash between accounts
• Balance enquiry
• Interest accrual
• Provision of

economic citizenship education

• Generating

financial awareness

• Provision of

account opening

• Provision of

account collaterals such as passbooks, ATM cards, cheque books, magnetic cards

Continuous educational inputs One-time banking initiation Ongoing transaction support School Bank

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Extend financial inclusion to X children in 2015 Bank association and Bank partners

• Each of the bank branches to

adopt one school each in the branch’s vicinity

• Provide bank accounts and on-

going banking services to children of the adopted schools School network

• Teachers to impart financial literacy

to children through innovative delivery methods

• Facilitate banking service delivery

within the school premises CYFI and Aflatoun and local Financial education partner

• Develop child-friendly

financial literacy content in vernacular languages

• Train teachers and bank staff

in imparting financial literacy and access to children

• Conduct marketing and

awareness generation activities

SchoolBank is a multistakeholder approach, including at least three types of stakeholders

Potential additional stakeholders include the central bank (sponsor), technology or telco companies (provider of prepaid or mobile functionalities)

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Why the SchoolBank approach works

1. It links financial inclusion and financial education 2. It is a structured approach which makes it easier to: − Scale up − Ensure consistency in quality − Create sustainable impact (continued provision of financial services to children) 3. Using the school adoption program (where each bank branch adopts at least one school in its vicinity) dramatically increases the reach of the program, even in rural areas 4. Dependent on the operating model chosen, it can be much easier for children in rural areas to become financially included as they do not need to visit a bank branch to deposit and withdraw money 5. We can link technological solutions to the project to increase the impact, through partnerships with technological and telco companies

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Rough timeline: The aim is to announce a number

• f SchoolBank projects by GMW 2015 (March)

Teacher (and Banker) Financial Education Training Certification Process to maintain quality and interest

Project set-up

Announcement of SchoolBank Project to be in Global Money Week 2015 (9-17 March)!

Training Launch Roll out 1 2 3 4

• Set up working

group and decide

• n roles and

responsibilities

• Decide on goals,
• perational

model, etc (see next page)

• Secure funding
• Start organizing

logistics

• Train the

teachers to teach ECE during the school year

• Impart trainings

through cascade model to reach scale fast

• Launch the

SchoolBank pilot during Global Money Week

• Large bank

account initiation in the schools

• Large

communication effort to raise awareness of the project

• Teachers teach

the ECE curriculum throughout the year

• Banks support

banking transactions, respective Child & Youth Banking principles

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The first step is to develop a local SchoolBank by answering questions on 7 dimensions

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School bank Pilot

Goal setting Regulatory norms Product Partnering ecosystem Operating model Technology innovations Project Management

• Who will be responsible for

the day-to-day management and launch of pilot?

• Is the Regulatory norm

conducive to launch products for Children and Youth?

• When should the program be

launched?

• What are the metrics/KPIs that must

be tracked and met?

• What products/services

can be made available for children and youth?

• What technology

innovations should be considered for the program?

• What should be right
• perating model for ease
• f implementation and

sustainability?

• What is the value

proposition for each involved stakeholder? a b c d e f g

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Master trainers Trainers NGO partners1 Teachers and bank staff

TBD TBD TBD

Number of trainers / children reached School children ▪ The best trainers of Aflatoun and its partner organizations are deployed ▪ Local trainers are trained by Master trainers to train the teachers on the curriculum1 ▪ Each trainer to train teachers/ branch reps, potentially in multiple batches

• 1. Necessity of this step depends on the size and timeline of the project

TBD

▪ The teachers impart the ECE curriculum through the schools

2 A ‘cascaded approach’ will be required to rapidly

build capability for delivering Economic Citzenship Education

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Global Money Week is the largest global celebration and awareness campaign for economic empowerment of children and youth

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www.childfinanceinternational.org ChildFinance ChildFinance www.childfinanceinternational.org

Titelstijl van model bewerken

Appendix

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Note: Under model 2 a third option where the intermediary is a telecom provider can also be explored

Children C School S Bank B Model type 2 C S B School as a “proxy” bank C S B Intermediary banking b School as facilitator Indepen- dent BC

• School/NGO to

provide educational inputs to children Banking initiation

• Children open a/c with

school; school to create single aggregate account with bank S Ongoing transaction support 1 a

• School to provide interest;

withdrawal and deposit to students; schools to aggregate transactions at bank (weekly) S

• Same as model 1

S

• Children to open a/c

directly with bank B

• School (teacher) to provide

support transaction as facilitator S

• Same as model 2a

B

• Independent BC to provide

transaction support B 3 B S C

• Same as model 2a

B

• Children to visit bank

branches/ATM to avail transaction support B Direct banking

• Same as model 1

S

• Same as model 1

S S

There are 3 operating models that are viable for SchoolBank

Educational inputs

• e. OPERATING MODEL

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Degree of school role Children C School S Bank B Model type 2 C S B School as a “proxy” bank C S B Intermediary banking b Teacher as facilitator Indepen- dent BC 1 a 3 B S C Direct banking Pros Cons Easy to pilot locally Profitable for banks (low transaction cost, higher monthly balance) Higher control over a/c’s Higher administration and

• perational expenses

Risk of irregularity and frauds Limited exposure to children to real baking environment Safer as transactions done with bank directly Lower school over heads High exposure to banking system for children Teachers to undergo additional training to become BCs Access limited to BC visits Limited to areas where banks in easy reach of children Children exposed to “real” risks of banking (lost ATM cards) More expensive for banks (as children a/c balance expected to be low) Easy to implement and scale up Real exposure to banking system for children

Each model has its pros and cons from an execution standpoint

• e. OPERATING MODEL

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In addition to these models, technologies that may be used for SchoolBank

Description and functiona- lities Consideration and requirements Relevant Examples1 (Pre-paid) Cards Multifunctional ATMs Mobile

• Pre-paid cards to be issued to

students to transact with

• Cards to be read by standalone

terminal

• Card allowed in ATMs to

customize C&Y servicing

• Cash deposits and withdrawals,

tax and bills payments, phone credit recharges, interbank transfers, but also tickets for concerts and shows

• Mobile wallet - linked to savings

accounts

• Phone based credit top up and

transfer between users ( teacher and students)

• Potential for edu-games
• Nigerian National ID card (for

adults)

• My Money Card (Axis Bank - India)
• UNISCOO prepaid Mastercard

(Kenya)

• Multibanco in Portugal The offers

60 services, incl. cash deposits and withdrawals, tax and bills payments, phone credit recharges

• Turkcell wallet (adults)
• UNCDF MM4P program (Lao PDR,

Liberia, Malawi, Nepal)

• M-shwari (Kenya)
• Depends on ability and willingness
• f banks to spread cards
• Payment and top-up

infrastructure should be in place in schools

• Requires big investment in

infrastructure

• Integrate C&Y functionalities
• High mobile and internet

penetration required

• Regulation allowing mobile

banking

• Ability & willingness of banks to

serve via smart/regular phones Applicable

• perating

model

• Model 1 – can be used at the

school level

• Model 2a and 2b – Between

Teacher and student

• Model 3 – Existing ATMs can be

modified to become student friendly

• f. TECHNOLOGY INNOVATIONS

1 Some products combine various models, e.g. mobile and cards

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How to Bank C&Y: The 8 child & youth friendly banking principles

• 1. Available and Accessible to all Children and Youth
• 2. Maximum Control to Children and Youth
• 3. Providing a Positive Financial Incentive
• 4. Unbanked Children and Youth are Banked
• 5. Child and Youth Centered Communication
• 6. Component of Economic Citizenship Education
• 7. Child and Youth Satisfaction is measured
• 8. Internal Control on these Standards

1 2 3 4 5 6 7 8

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Source: Child & Youth Finance International & MasterCard, 2014, Banking a New Generation

www.childfinanceinternational.org ChildFinance ChildFinance www.childfinanceinternational.org

Titelstijl van model bewerken

Thank you!

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