Show Me the Money: Costs and Revenue of Youth Savings and Financial Education Services Offered by Credit Unions in Mali and Ecuador

This paper identifies some of the challenges and opportunities faced by financial service providers (FSPs), credit unions in particular, in providing savings integrated with financial education to the youth. It is based on the experience of three FSPs: Cooprogreso and San José, credit unions in Ecuador, and Nyèsigiso, a credit union federation in Mali. The study analyzes quantitative and qualitative data collected from each organization and develops five-year financial projections. It also aims to contribute to the development of a business case for providing a product that combines savings with education for the youth. The paper covers the followings sections in detail:

• Methodology of the study which involved data collection, development of financial projections, and applying an analytical framework;
• Overview of the Advancing Integrated Microfinance for Youth (AIM Youth) initiative;
• Features and characteristics of the microfinance sector and youth population in Ecuador and Mali;
• Description of the three FSPs included in the study;
• Cost, revenue and profitability analysis for youth financial services with a focus on cost optimization and revenue maximization strategies that can be used by FSPs to enhance profitability.