YFS Case Study No.2: A Case Study on Financial Services for Street Children

Author

Iqbal Ahammed, Padakhep (2009)

Abstract

This case study explores the work of Padakhep, a non-government organization (NGO) which provides both non-financial (vocational training, psychological counseling, etc.) and financial (credit and savings) services in their effort to improve the lives of street children in Dhaka,Bangladesh. It is estimated that there are about 5,000,000 street children in different cities of Bangladesh, 300,000 of which are in the capital city of Dhaka. These children are often neglected and are consistently subject to a life without shelter, healthcare, education, legal support, and access to financial services. Under these dire circumstances, street children often turn to crime and other illicit activity.  Padakhep provides a space for these highly vulnerable children to receive access to financial services while teaching them invaluable life skills. Once children in groups have completed 40 weekly-meetings and graduated through evaluation from a specific training cycle, they are eligible for credit for income-generating activities. On the savings side, Padakhep’s program aims to inculcate the habit of savings from a young age by providing flexible savings and withdrawal options. One key lesson that emerged was that flexible terms and conditions of non-financial and financial products are essential for working with extremely vulnerable target populations like urban street children. Under the street children program, the total outstanding loan amount is $295,000 and children that have borrowed can earn on average $2 per day. From the time the program began to June of 2009, about 7,000 street children have borrowed through Padakhep.

Keywords

Bangladesh; Financial Services; Income Generating Activities; Life Skills; Non-Financial Services; Padakhep; Street Children

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