YFS Case Study No.6: Youth-Inclusive Financial Services: Marketing and Delivery is What Matters

Author

Lalaine Y. Gepaya, Panabo Multi-Purpose Cooperative (2009)

Abstract

The Panabo Multi-Purpose Cooperative (PMPC) is a credit union based in the Philippines and a part of the global World Council of Credit Unions (WOCCU) network. From a business perspective, PMPC saw offering youth savings products as an opportunity to capture an untapped, unbanked market. Their primary goals were to 1) increase outreach by targeting youth and at the same time their parents and 2) increase savings, a low-cost source of funds (PMPC does not use any external financing to fund its loan portfolio). From a social perspective, reaching out to youth provided PMPC with an opportunity to give youth a safe place to save—even the smallest amounts—and to promote a culture of savings at a young age. This case study describes how PMPC exhibits that partnerships with schools can be an effective form of growing membership, promoting a culture of savings at a young age, and delivering much-needed financial services to underserved youth populations. Highly targeted marketing also contributed to the success of this youth product. For example, through a competitive process, PMPC worked with partner credit unions to develop the logo for the youth product and vibrant colors were used to capture the imagination of the youth. In addition, PMPC provides tailored incentives to certain target groups such as the younger children (ages 0-12), or the ― “Youth Savers Clubs”, who receive a coin bank, while the older ― “Power Teens” (ages 13-18) receive power saver mugs, belt bags and key chains. Currently, PMPC has seven branches offering youth savings products, 20 partnerships with local schools (in all locations), and 7,152 youth members (4,822 youth savers and 2,300 power teen savers).

Keywords

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