YFS Case Study No.3: Safe and Smart Savings Products for Vulnerable Adolescent Girls in Kenya & Uganda

Authors

Karen Austrian, Population Council;Corrinne Ngurukie, MicroSave Consulting Limited (2009)

Abstract

This case study details the unique partnership between Population Council, a research-focused NGO with expertise in adolescent girls programming, and MicroSave, a consulting firm with expertise in product development for low income clients, to develop and deliver critical financial services to adolescent girls by partnering with four financial institutions – two in Kenya and two in Uganda. At the start of this project, there were no formal, accessible savings products for girls that existed in East Africa, increasing their risk and vulnerability. Lessons learned from two different projects in Kenya led to the decision to engage in the development of savings accounts for girls. Key findings from initial market research conducted among target groups were that 1) girls had money; 2) if an appropriately designed savings account was available, girls would save their money in them; and 3) girls wanted health and social activities alongside the opportunity to save. In addition, research showed that girls wanted savings products for them that were easy to access and be confidential – that is, they must be able to operate it independently of their parents. A product concept for a group-based savings account was developed, in which the group model was used to address both the legal constraints of minors not being able to hold individual accounts, as well as providing the girls with access to the ‘Safe Spaces’ model of programming and, building their social networks. Although none of the existing child accounts on the market were profitable in the traditional sense, financial institutions (FIs) engaged these girls, their families, and their wider communities, which represent a large future customer base. Also, if delivered correctly, this would improve the FI’s image in the community they are serving. As of September 2009, the pilot is in its final months in Kenya with over 1050 girls participating. Pilot results will be evaluated at the end of 2009 and expansion into Uganda is underway.

Keywords

Adolescent Girls; Financial Services; Kenya; Group Based Savings; MicroSave; Population Council; Savings Products; Social Networks; Uganda

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