Colombia

When YouthSave began, the financial sector in Colombia was comprised of 18 banks, totaling 5,076 branches. Despite this number of branches, out of 1,119 municipalities, an estimated 61 municipalities lacked access to formal banking services. In 2006, the government created Banca de las Oportunidades (BDO) - a long-term policy program aimed at expanding access to financial services for adult Colombians. See CGAP paper for more information. The age restriction on account openings through this program was 18; banking, therefore, remained particularly challenging for Colombian youth. Historically, poverty, displacement, and violence had presented barriers to education, healthcare and financial inclusion for this segment of Colombians. Yet despite these barriers, there was great demand for financial services, with the number of youth opening savings accounts in formal institutions growing rapidly.

See the Colombia Country Assessment for Youth Development Accounts from the Center for Social Development here.

Financial Partner: Banco Caja Social (BCS)

Founded in 1911 by Jesuit Priests as Caja de Ahorros del Círculo de Obreros for the purpose of combating poverty of the working class, BCS became a formal commercial bank in 1991. At the beginning of the YouthSave project, over one-third of its clients earned less than the minimum wage, placing them in the low- or very low-income segments of the population. When we partnered, BCS offered a full range of banking services to individuals, micro-enterprises, and other businesses. Products included savings and transaction accounts; housing, consumer, and business loans; and payment services. BCS also served the Colombian market through the Colmena brand, which brought the total number of branches in its network to 267. To learn more about BCS today visit: www.bancocajasocial.com.co.

Research Partner: Universidad de los Andes

A private research university located in downtown Bogotá, UniAndes is comprised of several institutes within the university. We accorded that two of these institutes would provide expertise to YouthSave: Centro de Estudios sobre Desarrollo Económico (CEDE), and Alberto Lleras Camargo School of Government. Both CEDE at the Faculty of Economics and the School of Government had a history of undertaking rigorous, policy-oriented research in areas relevant to the YouthSave initiative. This research also included work in the areas of education, health, early childhood development, labor markets, poverty and income distribution. To learn more about UniAndes today visit: www.uniandes.edu.co.