New financial inclusion plan for youth in place

Dar es Salaam. The Financial Sector Deepening Trust (FSDT) yesterday came up with a new scheme, which is meant to initiate fresh thinking on ways of promoting financial inclusion among the youth.

The initiative is dubbed Ibua.

FSDT operations director Irene Mlola said the move sought to ensure the youth derive value from regular use of financial services.

“We need to encourage their behavioural change towards greater awareness of their finances, including the use of the available products and services,” noted Ms Mlola. She said the youth aged between 16 and 24 were grappling with multiple challenges, including low level of education, poor participation in civic and economic activities as well as wealth and human capital.

The youth remained one of the most marginalised social-economic groups in financial inclusion. “They account for a third of overall financially excluded population in terms of their participation in the financial sector,” noted Ms Mlola.

“Over 50 per cent of the youth use mobile money, but their take-up of formal banking, insurance, credit and serving products and services is low,” she said. However, as early adopters of new market offers and technology, the youth up-take of digital financial solutions of mobile money and digital savings is on the rise. She said they are currently among the leading social demographic groups in accessing mobile credit.

“This presents a significant opportunity for public and private stakeholders to expand and deepen their market,” she said.