SchoolBank – Developing the next generation of economic citizens January 2015
The objective of the program Increase financial inclusion through a school adoption 1 program Each bank branch will adopt To develop the a school in its vicinity to next generation + open bank accounts and of economic offer transaction support citizens Impart Economic Citizenship Education(ECE) 2 through the schools Schoolteachers are trained to teach the Economic Citizenship Curriculum in each school
SchoolBank model delivers three basic services to the children and youth • Provision of • Provision of Continuous One-time account opening economic educational banking citizenship • Provision of inputs initiation education account • Generating collaterals such as School passbooks, ATM Bank financial cards, cheque awareness books, magnetic cards Ongoing transaction support • Withdrawal and deposit facility • Transfer of cash between accounts • Balance enquiry • Interest accrual 3
SchoolBank is a multistakeholder approach, including at least three types of stakeholders Bank association and Bank partners • Each of the bank branches to adopt one school each in the branch’s vicinity CYFI and Aflatoun and local • Provide bank accounts and on- Financial education partner going banking services to • Develop child-friendly children of the adopted schools financial literacy content in Extend financial vernacular languages inclusion to X • Train teachers and bank staff children in 2015 in imparting financial literacy and access to children • Conduct marketing and awareness generation activities School network • Teachers to impart financial literacy to children through innovative Potential additional stakeholders include the central delivery methods bank (sponsor), technology or telco companies • Facilitate banking service delivery (provider of prepaid or mobile functionalities) within the school premises 4
Why the SchoolBank approach works 1. It links financial inclusion and financial education 2. It is a structured approach which makes it easier to: − Scale up − Ensure consistency in quality − Create sustainable impact (continued provision of financial services to children) 3. Using the school adoption program (where each bank branch adopts at least one school in its vicinity) dramatically increases the reach of the program , even in rural areas 4. Dependent on the operating model chosen, it can be much easier for children in rural areas to become financially included as they do not need to visit a bank branch to deposit and withdraw money 5. We can link technological solutions to the project to increase the impact, through partnerships with technological and telco companies 5
Rough timeline: The aim is to announce a number of SchoolBank projects by GMW 2015 (March) 1 2 3 4 Project set-up Training Launch Roll out • Set up working • Train the • Launch the • Teachers teach group and decide teachers to teach SchoolBank pilot the ECE on roles and ECE during the during Global curriculum responsibilities school year Money Week throughout the • Decide on goals, • Impart trainings • Large bank year • Banks support operational through cascade account initiation model, etc (see model to reach in the schools banking • Large next page) scale fast transactions, • Secure funding communication respective Child • Start organizing effort to raise & Youth Banking logistics awareness of the principles project Teacher (and Banker) Financial Education Training Certification Process to maintain quality and interest Announcement of SchoolBank Project to be in Global Money Week 2015 (9-17 March)! 6
The first step is to develop a local SchoolBank 1 by answering questions on 7 dimensions • When should the program be launched? • What are the metrics/KPIs that must be tracked and met? • Who will be responsible for • Is the Regulatory norm the day-to-day management conducive to launch products and launch of pilot? for Children and Youth? Goal setting a Project Regulatory Management norms • What technology b g • What products/services innovations should be can be made available for School bank considered for the children and youth? program? Pilot f Technology c Product innovations d e Operating Partnering • What should be right • What is the value model ecosystem operating model for ease proposition for each of implementation and involved stakeholder? sustainability? 7
2 A ‘cascaded approach’ will be required to rapidly build capability for delivering Economic Citzenship Education Number of trainers / children reached ▪ The best trainers of Aflatoun TBD and its partner organizations Master are deployed trainers ▪ Local trainers are trained by TBD Master trainers to train the teachers on the curriculum 1 Trainers NGO partners 1 ▪ Each trainer to train teachers/ TBD branch reps, potentially in multiple batches Teachers and bank staff ▪ The teachers impart the ECE TBD curriculum through the schools School children 1. Necessity of this step depends on the size and timeline of the project 8
3 Global Money Week is the largest global celebration and awareness campaign for economic empowerment of children and youth 9
Titelstijl van model bewerken Appendix ChildFinance ChildFinance www.childfinanceinternational.org www.childfinanceinternational.org 10
e. OPERATING MODEL There are 3 operating models that are viable for SchoolBank C Children S School B Bank Model type Educational inputs Banking initiation Ongoing transaction support S S S C S B • School/NGO to • Children open a/c with • School to provide interest; 1 provide school; school to create withdrawal and deposit to School as a educational single aggregate account students; schools to aggregate “proxy” bank inputs to children with bank transactions at bank (weekly) S B S • School (teacher) to provide C School as • Children to open a/c a • Same as model 1 support transaction as facilitator directly with bank S B facilitator 2 Intermediary B B S Indepen- b banking • Same as model 2a • Independent BC to provide • Same as model 1 dent BC transaction support S B B S C B • Children to visit bank • Same as model 1 • Same as model 2a 3 Direct banking branches/ATM to avail transaction support 11 Note: Under model 2 a third option where the intermediary is a telecom provider can also be explored
e. OPERATING MODEL Each model has its pros and cons from an execution standpoint C Children S School B Bank Degree of school role Model type Pros Cons Easy to pilot locally Risk of irregularity and frauds C S B Profitable for banks (low Higher administration and 1 School as a transaction cost, higher operational expenses “proxy” bank Limited exposure to children monthly balance) Higher control over a/c’s to real baking environment Safer as transactions done Teachers to undergo additional C Teacher as a with bank directly training to become BCs facilitator S B Lower school over heads 2 High exposure to banking Intermediary Access limited to BC visits Indepen- system for children banking b dent BC Limited to areas where banks in Easy to implement and easy reach of children scale up S C B Children exposed to “real” risks of Real exposure to banking 3 banking (lost ATM cards) system for children Direct banking More expensive for banks (as children a/c balance expected to be low) 12
f. TECHNOLOGY INNOVATIONS In addition to these models, technologies that may be used for SchoolBank (Pre-paid) Cards Mobile Multifunctional ATMs • Pre-paid cards to be issued to • Mobile wallet - linked to savings • Cash deposits and withdrawals, students to transact with accounts tax and bills payments, phone Description credit recharges, interbank • Cards to be read by standalone • Phone based credit top up and and transfers, but also tickets for functiona- terminal transfer between users ( teacher concerts and shows and students) lities • Card allowed in ATMs to • Potential for edu-games customize C&Y servicing • Depends on ability and willingness • High mobile and internet • Requires big investment in of banks to spread cards penetration required infrastructure Consideration • Payment and top-up • Regulation allowing mobile • Integrate C&Y functionalities and infrastructure should be in place banking requirements in schools • Ability & willingness of banks to serve via smart/regular phones • Model 1 – can be used at the • Model 2a and 2b – Between • Model 3 – Existing ATMs can be Applicable operating school level Teacher and student modified to become student friendly model • Nigerian National ID card (for • Turkcell wallet (adults) • Multibanco in Portugal The offers adults) 60 services, incl. cash deposits • UNCDF MM4P program (Lao PDR, Relevant and withdrawals, tax and bills • My Money Card (Axis Bank - India) Liberia, Malawi, Nepal) Examples1 payments, phone credit recharges • UNISCOO prepaid Mastercard • M-shwari (Kenya) (Kenya) 1 Some products combine various models, e.g. mobile and cards 13
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