YouthSave Kicks Off Savings Pilots in Ghana and Kenya

YouthSave marked a major milestone in July with two partner financial institutions (FIs) kicking off their product pilot tests: HFC Bank in Ghana and Kenya Postbank. These pilots are the culmination of months of dedicated work by many staff within our partner FIs as well as consortium member organizations. The pilots also represent the latest stage in a product development process that began several months ago, with extensive market research in both countries. Over 1300 respondents, of which 80% were youth, participated in qualitative research methodologies across the two countries. In addition, the market research queried parents, teachers, and community leaders, who are important “gate-keepers” to youth audiences.

The market research consisted of three phases: background research through interviews, focus groups, and a literature review; product concept development; and finally concept testing. The two latter phases relied heavily on focus group discussions. Each FI then subjected the tested concept to a series of internal discussions to ensure that it complied with legal norms as well as the bank’s policies and procedures, resulting in the prototypes that the FIs are now piloting.

So what are YouthSave and its FI partners trying to accomplish through the pilots? A product pilot test can be described as a “mini” launch of the product, conducted in a controlled and limited manner. This testing period provides the FI an opportunity to better understand the market, track the product’s performance, examine the implications of offering it at scale, and refine it. It is the FI’s chance to apply the product in a real environment, and answer questions like “Will youth actually buy and use this product?”, “Is this really what young people desire?”, and “Does the FI have sufficient capacity and resources to offer the product?” Through the pilots, the FIs are aiming to establish (1) a comprehensive understanding of young people’s savings needs; (2) a well-defined product that meet those needs; and (3) lessons to inform decision making on the product going forward.

These YouthSave pilots will last for 3-6 months, depending on interim evaluation results. Both institutions have chosen a small group of branches at which to test the products – 4 at HFC and 12 at Postbank, in proportion to the total number of branches in their network. Pilot branches are geographically spread across the two countries to test acceptance in different regions, which may eventually require different marketing or delivery strategies to reach different groups of youth (for example in rural and urban areas).

In Kenya, the pilots are kicking off with “activation days” meant to announce the product with a splash in local communities. The first four activations gathered nearly 1900 youth and 300 adults and engaged them in sports and games as well as discussions about the Postbank youth savings product. In Ghana, branch-based marketing staff are making presentations at local schools and places where out-of-school youth congregate. Branch marketing staff are also targeting responsible adults through PTA meetings and by returning to the schools on days when parents come to collect their children’s exam results. Both pilots have already resulted in children opening accounts, and several adults attending the events have also opened accounts of their own.

YouthSave and our partner FIs will be tracking pilot results carefully over the next several months, keeping a particularly close eye on issues such as the communication of product information to branch staff and clients, effectiveness of marketing methods, and client satisfaction. To this end, pilots will be monitored through both qualitative and quantitative means, including MIS reports and customer surveys, focus groups, and interviews. The pilots will also provide an opportunity to test and fine-tune the data collection mechanisms that are critical to YouthSave’s research component.

We anticipate that these pilots will provide important insights that will help YouthSave and our partner FIs refine their youth savings offerings for eventual large-scale rollout. Final product rollouts are anticipated in both countries in early 2012.