Building a Sustainable Youth Proposition: Lessons from Banco ADOPEM

This case study evaluates the impact of a youth savings program called the Mia (“mine” in Spanish) account which was launched by Banco ADOPEM in 2010. The program was rolled out to all of Banco ADOPEM’s branches by the end of 2011. Today, Mía continues to be a key part of the bank’s product offerings and is one of its most visible products, mostly due to the colorful marketing materials and collateral designed to attract youth. The case study discusses the impact of the program on the bank’s operations, highlights the lessons learned, and identifies five emerging areas that are essential to build a successful business case for youth savings. It suggests that although every financial institution is different, and no single approach can be implemented across all institutions, the lessons learned from Banco ADOPEM’s experience can be broadly applied by financial service providers as they plan to offer youth savings or enhance existing offerings. Key lessons include:

• Offer a multi-generational proposition that addresses both youth and their parents;
• Optimize product design for on-lending;
• Establish a migration plan to realize the long-term profitability of serving youth clients;
• Invest in marketing and financial education;
• Plan for sustainability beyond donor funding.