CHILD AND YOUTH
Child and Youth Friendly
Child and Youth Friendly Banking Product Certificate – Second Edition Child and Youth Finance International TM 2012 Jeroo Billimoria
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This first version of the Child and Youth Friendly Banking Product Certificate Guide is the result of extensive research undertaken between 2010-2012, including a 1-month public consultation submitted to over 400 organizations. Contributors to this Certification Guide include financial regulatory authorities from around the world, a wide range of Financial Institutions, academics, NGOs, and business (accountancy, legal, and consultancy) service firms.
The following list of individuals and institutions have contributed to this Certification Guide. Child and Youth Finance International wishes to thank every contributor for the time and effort they have contributed to the Movement. Child and Youth Finance Regulation and Inclusion Working Group Members
Banco Bilbao Vizcaya Argentaria (BBVA) European Central Bank (ECB) Banco Santander Federal Reserve San Francisco
Bank of Spain Global Alliance for Banking on Values (GABV) Central Bank Indonesia Houthoff Buruma
ChildFund International ING Netherlands
Clifford Chance International Child Support (ICS) Commission de Surveillance du Secteur Financier Luxembourg Opportunity Bank Malawi Dutch Central Bank (DNB) Plan Netherlands
European Banking Supervisors (CEBS) Union of Arab Banks (UAB)
European Association of Co-Operative Banks (EACB) World Savings Banks Institute (WSBI)
Overview of other contributing institutions and individuals
ADA Luxembourg KPMG
Aflatoun, Child Savings International Making Cents American Bankers’ Association (ABA) McKinsey & Company Austrian Financial Market Authority MFI expert
Bain Microfinance Opportunities Banamex National Bank of Slovakia
Banco de Portugal National Bank of the Republic of Kazakhstan Banco Naçional de Mexico National Bank of the Republic of Macedonia Bank of Estonia National Credit Regulator (South Africa) Bank of Israel Nuestra Escuela
Central Bank of Congo Organisation for Economic Co-operation and Central Bank of Egypt Development (OECD)
Central Bank of Hungary Operation Hope
Central Bank of Italy Palestine Monetary Authority Central Bank of Morocco Polish Financial Supervision Authority Central Bank of Philippines Population Council
Central Bank of Turkey Postbank Kenya Corporation for Enterprise Development (CFED) Reserve Bank of India ChildFund International Reserve Bank of Malawi
China Banking Regulatory Commission Royal Monetary Authority of Bhutan Commonwealth of Nations Save the Children USA
Deloitte Touche Tohmatsu Ltd School Savings Federal Reserve Board Triodos NL
Financial Services Agency Japan UN Capital Development Fund (UNCDF) Financial Services and Markets Authority (FSMA) Belgium UNESCO
Grupo ACP University at Buffalo, School of Management International Auditing and Assurance Standards Board (IAASB) Vrije Universiteit Amsterdam
Institut des Finances (Lebanon) Washington University, George Warren Brown School JA Worldwide World Savings Banks Institute (WSBI)
Core Principles of the Child and Youth Finance Movement
The Core Principles of the Child and Youth Finance movement are focused firmly on increasing the financial protection and empowerment of all children and youth across the world. The Movement works to ensure that the human rights, and in particular the economic rights, of children and youth are respected at all times. It builds upon the United Nations Convention on the Rights of the Child and The Universal Declaration of Human Rights.
To that end, the Movement encourages the creation of systems in which the interest of children and youth are pushed to the forefront, in which children and youth are recognized as important stakeholders whose financial safety must be secured, and in which their risks of financial exploitation are minimized.
Endorsers and contributors to the Child and Youth Finance Movement subscribe to the principles of the Movement as outlined below:
1. All children and youth have basic human rights and economic rights which must be respected by all institutions and individuals , and have the right to build their assets and build a livelihood
2. Institutions must conduct their business in such a way as to protect children and youth, safeguard them from all forms of exploitation, particularly financial exploitation, and always promote the best interests of children and youth 3. All children and youth- regardless of their nationality, ethnicity, religion, environment, ability, gender or economic
situation- deserve to have access to safe, appropriate financial services and quality financial, social and livelihoods education designed for their benefit. Institutions and policies must ensure their best effort to ensure all children and youth are included in these efforts
4. The movement is committed to ensuring that the experience of children and youth in social and financial enterprises remain a positive, safe and ethically responsible way of generating income, developing valuable skills and creating social impact. The Movement aligns its position to that of the UNCRC’s position which states that “no child or youth must be exposed to work that is likely to be hazardous or to interfere with the child’s education, or to be harmful to the child’s health or physical, mental, spiritual, moral or social development”1
5. The Movement will remain open and collaborative to all stakeholders, including children and youth. Contributers within the Movement will engage in experience-sharing and collaboration with other contributors within the Movement to share innovations and strengthen activities and knowledge within the Movement
The Child and Youth Finance Movement is committed to creating policies and conducting activities that are in accordance with these principles and which will respect the human rights and economic rights of children and youth at all times. Guided by these principles, endorsers of the Movement will work jointly to achieve the Movement’s goal of facilitating financial inclusion and Child and Youth Finance Education for 100 million children and youth in 100 countries by 2015.
Child and Youth Finance International (CYFI) is leading a global movement which seeks to facilitate access to child and youth friendly bank accounts and holistic financial education for 100 million children and youth in 100 countries by 2015. CYFI is a global collaborative effort of stakeholders from academia, the financial services sector, financial regulatory authorities, policy making bodies, microfinance, and (I)NGOs.
Providing access to Banking Products to children and youth is a critical component in the process of equipping them for lifelong economic citizenship. When combined with holistic education, such access can help them grow into well-informed, independent, and responsible adults.
The Child and Youth Friendly Banking Product Certificate (the Certificate) has been under development since 2010, and is intended to be the first-ever global standard for safe and reliable Banking Products (both savings and current accounts) for children and youth (0-18 years).
The Certificate is awarded to Banking Products that meet specific standards, including: 1. Availability and accessibility for children and youth,
2. Maximum control to children and youth,
3. Positive financial incentive for children and youth, 4. Reaching unbanked children and youth,
5. Employing of child and youth friendly communication strategies 6. A Financial education component,
7. Monitoring of child and youth satisfaction, 8. Internal control
Only Banking Products provided by licensed Financial Institutions regulated by the national regulatory authority and guaranteed by a deposit guarantee scheme are eligible for the Certificate.
The Certificate confers meaningful benefits on Financial Institutions, which should only increase as the Child and Youth Finance Movement grows. A Child and Youth Friendly Banking Product Certificate endorses a Financial Institution’s product by awarding it the CYFI “stamp of approval”. The Certificate tangibly illustrates an institution’s commitment to child empowerment and protection, and accesses a new generation of financially capable financial services clients. This Certification Guide describes the processing of obtaining a Certificate. It is a guide for departments within Financial Institutions tasked with coordinating the certification process. The process of obtaining the Certificate comprises: 1. The Financial Institution performing a Readiness Assessment on itself, assessing the Banking Product design and implementation
2. An Audit, assessing the implementational and operational effectiveness of the Banking Product. The Audit is performed by CYFI in combination with an A-rated independent auditing agency.
The Certificate is awarded to Banking Products which have been offered for at least six months. It is valid for a period of three (3) years. During these 3 years the Financial Institution must inform CYFI of any significant changes to the product. After 3 years, the Banking Product must undergo re-certification.
This guide is divided into five Chapters:
Chapter 1 – Introduction to Child and Youth Finance International Chapter 2 – Why Certify?
Chapter 3 – Certificate Standards, Themes, and Controls Chapter 4 – Certification Process
Introduction to Child and Youth Finance International
1.1 About Child and Youth Finance International 10
1.2 The Movement’s Roadmap 11
1.3 Activities within the Movement 12
1.4 Regional Platforms 18
1.5 Country Platforms 20
1.6 Innovation 20
1.7 Education and Inclusion 21
1.8 Publications 22
2.1 What is the Certificate? 26
2.2 Why this Certificate? 26
2.3 Scope of the Certificate 26
2.4 Who Can Obtain the Certificate? 26
2.5 Benefits of the Certificate for the Financial Institution 27
Certificate Standards, Themes, and Controls
3.1 The Standard and Control Framework 30
3.2 Flexibility of the Control Framework 31
3.3 Availability and Accessibility for Children and Youth 32
3.4 Maximum Control to Children and Youth 33
3.5 Positive Financial Incentive for children and youth 34
3.6 Reaching Unbanked Children and Youth 35
3.7 Employing of Child and Youth Friendly Communication Strategies 35
3.8 A Financial Education Component 37
3.9 Monitoring of Child and Youth Satisfaction 38
3.10 Internal Control 39
3.11 Language Constraints 39
4.1 Process Flow 43
4.2 Certification Process Steps 44
4.3 Timelines 46
Use of Certificate
5.1 Validity of the Certificate 48
5.2 Information 48
5.3 Statement 48
5.4 Logos 48
5.5 Conditions 48
INTRODUCTION TO CHILD
AND YOUTH FINANCE
Introduction to Child and
Youth Finance International
1.1 About Child and Youth Finance
Child and Youth Finance International (CYFI) leads the world’s largest Movement dedicated to enhancing the financial capabilities of children and youth. Launched in April 2012, the Movement has already spread to over 100 countries and has reached more than 18 million children.
The Movement leverages expertise and innovation from within its network of global organizations. Its partners and supporters include financial authorities and some of the world’s leading financial institutions, international NGOs, multilateral foundations, renown academics, and without a doubt, children and youth.
The Movement has one central objective: increase the economic citizenship of children and youth. This means giving all children and youth aged 8- 18 the knowledge to make wise financial decisions , the opportunity to accumulate savings, and the skills to find employment, earn a livelihood and ultimately break the cycle of poverty.
Children and youth are the future economic actors whose financial decisions will dictate the future of world economies. Providing young people with the economic and social environment to prosper and the competences (financial, social and livelihoods) to thrive has a meaningful impact on the lives of individuals and the communities in which they live.
Communities will benefit, as a new generation of financially capable children and youth grow up to be responsible investors and entrepreneurs. Such important skills and experiences of managing financial resources at an early age can allow for lessened financial vulnerability thereby reducing the risk of poverty caused by debt.
The recent financial crisis has highlighted the need for savings and prudent financial management for all persons. This is especially true for children and youth, who are a particularly vulnerable age group. Promoting a positive financial culture in children and youth is essential to ensuring a financially literate population, capable of making well-informed decisions and of lowering financial vulnerability and risk.
The Mission of Child and Youth Finance
International is to Empowerall children and youth across the world, particularly those who are vulnerable and marginalized, by increasing their financial capability, enhancing their awareness of social and economic rights and improving their access to appropriate financial services so as to build their assets and invest in their own futures.
“I strongly support helping young people gain greater financial literacy as well as
better access to services that will lead the way to employment, entrepreneurship
1.2 The Movement’s Roadmap
Through a consultative process with the world’s experts in their respective fields, Child and Youth Finance International has created a strategic roadmap to guide it towards fulfilling its goals and achieving its mission. At the core of this roadmap are the different focus areas of the Movement. These reflect the Movement’s combined macro and micro levels focuses: building the necessary financial knowledge, skills on an individual level, and on reshaping systems on the macro level – systems including the financial, regulatory, educational, technological or otherwise.
The focus areas, and the goals of each focus area are as follows:
Goal Place children and
youth’s economic rights and economic citizenship on global agendas.
Goal Hold bi-annual
regional meetings in order to increase collaboration among regional stakeholders.
Goal 100 countries
have an action plan for Child and Youth Finance activities in their countries, and celebrate Global Money Week.
Goal Ensure the voices
of children and youth are heard, and when possi-ble, that their voices are spread through new and existing technologies.
Economic citizenship Education and Financial Inclusion
Goal 100 million children and youth have access to Economic
Citizenship Education and appropriate financial products by 2015.
To ensure that these goals are achieved, partners of the Child and Youth Finance Movement have committed to create the necessary programs, provide necessary services and/or re-examine policies.
1.3 Activities within the Movement
1.3.1 Global Platforms
Global platforms refer to the activities of the Movement to coordinate global efforts and disseminate knowledge and expertise throughout the network, and leverage partnerships to reach maximum impact.
22.214.171.124 The First Annual Summit
The First Annual Child and Youth Finance Summit & Awards Ceremony was held in the Netherlands and saw the launch of the Child and Youth Finance Movement. 416 participants from 83 countries attended the Summit, including 75 children and youth. The Summit had the following objectives:
• To share insights and experience from expert in different fields
• To share innovations and best practices in delivering financial education and financial inclusion for youngsters
• To create partnerships and strengthen collaborations for Child and Youth Finance activities
• To share the voices of children and youth on the financial issues that most affect them
The Summit served as an important platform for gaining inputs from the CYFI Network into the strategic direction of the Movement and the needs for the Movement Partners.
The Summit enjoyed a number of highlights, including a letter of support from the United Nations Secretary General, a commitment from the Mexican G20
Secretariat to take on the issues of financial inclusion for youth, and direct interaction between children, youth and adult participants. Summit outcomes included: • Declarations of commitment by meeting participants
on their contribution to the Child and Youth Finance Movement.
• Documentation of innovations and sharing through online platforms and other media
• Creation of regional platforms and actions plans for undertaking Child and Youth Finance activities at national and international levels
• Joint efforts to carry out Global Money Week events • Forming of alliances between organizations and
individuals in similar and/or different sectors • Documenting the top recommendations by children
and youth for policy reform for increasing financial capabilities of youth
A specific request to emerge from the participants of the Summit was for Child and Youth Finance Meetings to take place at the regional level. This resulted in 5 Regional Meetings in the second half of the year.
126.96.36.199 Children and Youth’s Participation
Linked to the annual Summit was the Children’s and Youth’s Meeting, which brought together 70 young people aged 8 to 18 from over 40 countries. Through a series of games and activities, they were able to share about the financial issues that most mattered to them. They also had the opportunity to share their own financial policy recommendations with policymakers. The recommendations are outlined below:
1. Provide financial literacy education 2. Create child and youth friendly banks 3. Encourage youth led enterprises
4. Create more equitable trade between developed and developing countries
5. Create awareness of child and youth finance 6. Support mobile and web-based banking
The Annual Summit for 2013 is being held in Istanbul, Turkey under the patronage of the Capital Markets Board of Turkey in collaboration with the Istanbul Stock Exchange and the Central Bank of Turkey.
CYFI Summit 2012 Representation by Region
Europe and Central Asia Latin America and the Caribbean Africa
Asia and the Pacific Middle East and North Africa
4% 13% 14%
CYFI Summit 2012
Representation by Sector CYFI Children and Youth Summit 2012 Representation by Region
Financial Institutions/Banking Associations&Networks (I)NGOs
National Authorities Bi- or Multilateral Institutions Researchers and Academics
Other 5% 8% 10% 23% 26% 28% 6% 28% 14% 42% 28%
Global Money Week Celebrations
188.8.131.52 Global Money Week
Global Money Week is a series of activities organized nationally and coordinated globally by the Child and Youth Finance Secretariat. In 2012, 21 countries participated in Global Money Week, reaching 33,000 children. In 2013, the number of countries taking part rose by 281% to 80 countries, reaching over 1
million children. 403 organizations were involved in organizing Global Money Week events. For many of the participating countries, the Global Money Week provided a platform for multi-sectorial national stakeholders to collaborate- many for the first time – on developing financial education and inclusion initiatives and policies in their countries.
Middle East and North Africa Latin America and the Caribbean Europe and Central Asia Asia and the Pacific Africa
Examples of activities that took place across the world
during Global Money Week are described below:
Ringing of the NASDAQ stock exchange – Child and Youth Finance
International was twice invited to ring the NASDAQ opening bell to celebrate Global Money Week in 2012 and 2013.
Visits to banks – Children and youth visited banks and other financial institutions to learn about how they work.
Visits to the stock exchange – Children and youth visited the stock exchange, with some of them ringing the opening bell to signal the beginning of trade!
Workshops and lessons in schools and centers – Children and youth enjoyed financial education lessons in schools and universities.
Talking to Central Bank Governors – Children shared their recommendations and opinions with the governors of their central banks.
(Web) Chat with policy makers – Children had the chance to discuss financial education and financial access with global policymakers.
Global web chat – Youngsters connected via web chats to share their experiences.
Debates – Debates on financial education, employment and enterprise took place in schools.
Visit to money museums – Money museums opened their doors to youngsters to teach them about money and its history.
Publications – Various publications to encourage children to learn about finance were made available in schools and libraries.
Contests and competitions – From poster-making contests to football
competitions, children engaged in fun contests on topics of financial education and inclusion.
“ I have just realized that owning an account is not just for adults but for everyone
who wants to have a secure future. I am going to open one so I can save all my
coins for investment after school”
School-aged youth during Global Money
Theatre – youngsters expressed themselves through theatre and the arts on financial issues.
Financial education games – Team games took place for a fun way of learning about finance.
Radio talk shows – Radio was used as a medium to share about financial education and inclusion.
Book bank – Special book banks were set up to share publications on finance for children.
Folk Stories – Telling stories has always been an effective means of teaching. It was no difference with teaching financial matters.
Exhibitions – Youngsters had the opportunity to display their artwork and projects in interactive exhibitions.
Cartoons – Cartoons and comic books were used to communicate key messages to children and youth.
Youth budget to parliament – Children and youth presented their recommendations and input into the youth budgets of their countries.
Ensuring inclusion – All children were in included in financial education activities – no matter if they were street children, children in juvenile correctional centres or children from care homes.
Learning from the market – Children and youth carried out their own enterprises, with some presenting them to the central bank governor. Other innovations and fun activities from across the world included jigsaw puzzles of banknotes, money magicians, face painting, financial mimes and famous bands singing about the importance of saving.
“ I couldn’t believe that we were talking to children in a different country who were
doing the same things we were doing here! Even though I didn’t understand
some of their words, I realized that they were learning about saving and money
and that kind of stuff just like us here. I liked that we looked like we were on a TV
6th grade girl, referring to the videoconference with children from
1.3.2 Research and Policy
184.108.40.206 Support from the UN Secretary General
The Child and Youth Finance Movement has enjoyed the support of the UN Secretary General. In his letter to the CYFI Annual Summit 2012, the UN Secretary General wrote: “I strongly support helping young people gain greater financial literacy as well as better access to services that will lead the way to employment, entrepreneurship and investing opportunities.”
220.127.116.11 Working with the G-20
The Movement has also worked closely with the Mexican G20 Presidency on emphasizing the importance of financial access for children and youth. Paragraph 53 of the G-20 leaders declaration states “We recognize the
need for women and youth to gain access to financial services and financial education”.
CYFI also played a facilitative role at the Y20 event in which children and youth also expressed their desire for increased financial education and financial inclusion.
18.104.22.168 Children, Youth and Finance
Children Youth and Finance is the organization’s annual flagship document. It compiles data gathered from within the network to document the state of the Movement and provides an analysis of current trends and gaps which need be addressed. In its first edition for 2011, the document provided the baseline upon which the Movement’s outreach and impact will be measured in future years. In this first ever compilation, the data gathered showed that the Child and Youth Finance Movement had reached 18 million children in 2011.
22.214.171.124 Academic Documents
In April of 2012 the Secretariat launched the academics-led review of literature examining the links between economic citizenship education and inclusion and how these impact empowerment of children and youth and their financial capability. The results of the review were encouraging and outlined the areas of work where further academic review and research must be undertaken. Successively, CYFI and the Centre for Social Development (CSD) published two research briefs on the Conceptual Development of the CYFI Model of Children and Youth as Economic Citizens and on Research Evidence on the CYFI Model of Children and Youth as Economic Citizens , highlighting a clear mandate for moving forward the area of child and youth finance and recommending areas of future academic research.
126.96.36.199 Creating An Online Platform
CYFI’s website was launched in 2012 and serves as a hub of information on activities, organizations and resources on financial topics for children and youth. The website currently houses over 600 resources ranging from academic papers, policy documents, discussion papers and news articles. Over 120 organizations are listed on the website, with details on the programs and services they offer which are designed to increase financial education and inclusion for children and youth. The website also features country pages. Displayed on each country page are CYFI’s partnering organizations who are working in that specific country, as well as information on the country’s policies on financial inclusion and education.
Recognition for the Movement
• Child and Youth Finance International spread the messages of the Movement by ringing the NASDAQ opening bell for two consecutive years to mark Global Money Week. This year’s bell-ringing ceremony was celebrated in collaboration with UNCDF.
• In 2012, Child and Youth Finance International’s Managing Director Jeroo Billimoria was awarded by the Union of Arab Banks for the achievements of the Child and Youth Finance Movement. Among the other awardees was Managing Director of the IMF Christine Lagarde.
• Child and Youth Finance International was listed in the Top 100 NGO list published by the Global Journal. It was also given the honor of “most promising NGO”.
• CYFI was a semi-finalist of the Mexico G2012
Financial Inclusion Challenge: Innovative Solutions
for Unlocking Access in the G20 competition. CYFI’s proposal, Schoolbank, was among the top 12 of 257 entries from 62 countries. As a semi-finalist, CYFI was invited to attend the high-level delegation meeting organized by G20 to mark the conclusion of Mexico’s Presidency of the G20.
Regional Breakdown at CYFI Regional Meetings
Europe and Central Asia Asia and the Pacific Americas and the Caribbean Africa
Middle East and North Africa
16% 19% 34%
Industry Representation at CYFI Regional Meetings
Financial Institutions/Banking Associations Bi- or Multilateral Institution & Foundations National Authorities
Researchers and Academics
Europe & Central Asia Asia
1.4 Regional Platforms
From October to December 2012,
Regional Meetings were held at
the request of participants of the
Child and Youth Finance Annual
Summit. The meetings served to
bring together diverse stakeholders
from within each region to exchange
expertise, form collaborations and
bring forward regional-specific
child and youth finance issues. Five
meetings were held for each of the
five regions in which the Movement
works. In total, the Regional Meetings
brought together over 800 senior
level participants from 105 countries
in the different areas of the world.
The Meetings took place in Mexico,
Belgium, Nigeria, Lebanon and the
Philippines. Youth representatives
were present at all the meetings and
shared their feedback directly with
1.4.1 Americas and the Caribbean
This meeting for the Americas and the Caribbean took place in Mexico in October 2012 as one of the activities within the framework of the Mexican G20 presidency. It brought together 132 participants from 17 countries. The Meeting was inaugurated by Mexican Minister for Youth Mr.Miguel Ángel Carreón and the Mexican Minister of
Education Mr.José Angel Córdova Villalobos.
Key issues for the region included: Financial education for out-of-school children, the role of civil society in disseminating financial education, strategies for increasing financial access for children and youth and undertaking research and impact assessment on these issues.
1.4.2 Europe and Central Asia
The meeting was held in Belgium in November 2012 and was hosted by the Financial Services Regulatory Authority of Belgium (FSMA). It brought together 130 participants from 36 countries. The meeting was inaugurated by HRH Princess Mathilde of Belgium. Giving introductory addresses were The Vice-Prime Minister
and Minister of Finance of Belgium Mr. Steven Vanackere,
and the Chairman of the Belgian Financial Services and
Markets Authority, Mr. Jean-Paul Servais. President of
the European Council, Mr. Herman van Rompuy, shared a video message in which he highlighted his support for the Movement.
Key issues for the region included: Tackling youth unemployment, integrating financial education into national curricula and creating pan-European strategies for financial inclusion and education for youngsters.
Europe and Central Asia
The first CYFI Regional Meeting for Africa took place in Nigeria in October 2012, under the patronage of Mr Mallam Sanusi Lamido Sanusi, the Governor of the Central Bank of Nigeria. CYFI’s Meeting was inaugurated by Deputy Governor of the Central Bank of Nigeria,
Mr Tunde Lemo. The CYFI regional meeting brought 145 participants from 17 African countries.
Key issues for the region included: promoting youth entrepreneurship, increasing financial literacy in formal and informal education centers and stimulating increased financial inclusion for youngsters.
The first Child and Youth Finance Regional Meeting for the Middle East & North Africa took place in Lebanon on
November 2012, . The meeting was held as an integrated agenda with the Annual Summit of the Union of Arab Banks. The Regional Meeting was inaugurated by the
Lebanese Prime Minister Mr. Najib Mikati and Minister
of Justice in Lebanon, Mr. Shakib Kortbawi. The meeting brought together 350 participants from 15 countries to focus on expanding the Child and Youth Finance Movement in the region.
Key issues for the region included: spurring economic growth and stability through tackling youth
unemployment and increasing financial literacy at secondary schools, primary schools and universities.
1.4.5 Asia and the Pacific
The Meeting for Asia and Pacific took place in the
Philippines in December 2012 at the offices of the Central Bank of Philippines, where it was inaugurated by
Mr. Amando M.Tetangco, Jr., Governor of Bangko Sentral
ng Pilipinas. 90 Representatives from 20 countries were present at the meeting.
Key issues for the region in included: An emphasis on financial access through formal and informal banking, a desire for technological solutions to overcoming financial barriers and a focus on creating the necessary regulation for facilitating these efforts.
1.5 Country Platforms
At the national level, CYFI helps facilitate collaborations between national stakeholders with the aim of creating national policies for advancing the financial capabilities of children and youth. Here, we outline some examples of these collaborations in different countries.
Chile- Prior to working with CYFI, representatives from various stakeholder groups in Chile were conducting separate efforts to address the different areas of financial education and financial inclusion for children and youth. During the CYFI Regional Meeting for the Americas, the different stakeholders saw the opportunity to combine their efforts. They successfully carried out a Global Money Week event and created a national working group. The purpose of this working group is to create national and coordinated efforts for financial inclusion and access for children and youth in Chile.
Latvia - Representatives from the Central Bank of Latvia and the Financial and Capital Markets Commission decided to collaborate when they met at the CYFI regional meeting for Europe. They joined forces to reach out to the Ministry of Education and Science. Today, all are working collaboratively to create a national strategy for financial education and inclusion for children and youth.
Morocco - Representatives of national authorities in Morocco attended the first CYFI Working Group Meetings and were inspired to include Child and Youth Finance topics into their national strategy for education and inclusion. They formed a multi-stakeholder
committee and organized Global Money Week activities. They went on to create a dedicated foundation for the development of a national strategy for Economic Citizenship Education.
Nepal- The Central Bank of Nepal attended the CYFI Annual Summit in 2012, where they had the opportunity to explore the activities of other countries in the region. As a result, the Central Bank of Nepal, in collaboration with UNICEF and UNCDF, organized a national multi-stakeholder meeting to address Child and Youth Finance issues. Children were also invited to this meeting. The stakeholders launched a project to collect data on all banking products available to children in Nepal.
Zambia - In Zambia, the Financial Sector Development Plan was developed by the Central Bank and the Ministry of Finance to address financial education and inclusion for youth. In collaboration with Child and Youth Finance international, they also organized a national Global Money Week event which will become a yearly celebration in Zambia.
1.6.1 Child and Youth Engagement
As a Movement dedicated to children and youth, CYFI ensures that youth are offered a platform through which they can offer their inputs on the strategic direction and priorities of the Movement. The participation of children and youth is ensured through their attendance at the Annual Summits, as well as through CYFI’s dedicated platform financanadme.org . Through this, they are able to share their stories on entrepreneurship, employment and the other manners in which finance affects their day
“ What some of us don’t notice is that some parents aren’t even trying to teach us
to day life. Through social media platforms, they are also invited to share their opinions and thoughts, through direct interaction, polls and surveys. In 2012, children and youth offered feedback to the Basel Committee’s Core Principles on Banking Supervision through the online consultation process. This involved youth from 12 countries.
Through technology, CYFI is examining how existing, new and innovative technology can be used to disseminate Economic Citizenship Education and facilitate financial access for children and youth. One such initiative is CYFI’s SchoolBank project. The project aims to provide safe, low cost and structured ways of saving for children and youth. It advocates applying mobile banking technology or branchless banking technology in creating access to formal channels of saving and using schools (or community centers, non-formal education organizations, etc.) in facilitating the provision of financial access and financial education.
1.7 Education and Inclusion
Financial inclusion and Economic Citizenship education are two themes which run across all the activities of CYFI. Financial inclusion refers to the Movement’s efforts to increase access to appropriate financial services for children and youth. Economic Citizenship has been defined by Movement partners as an education which combines social, financial and livelihoods components. CYFI places a great emphasis on ensuring that financial education and financial inclusion are simultaneously provided to young individuals in order for them to gain both the knowledge and experience of financial realities.
1.7.1 Child and Youth Friendly Banking
CYFI brought together representatives from financial regulatory authorities and financial institutions to create the criteria for Child and Youth Friendly banking products. From these criteria, a product prototype can be created, which can be further modified by interested financial institutions. To date, 12 financial institutions have used these product criteria to create financial products for youth, mostly savings accounts.
The criteria are also used to assess the levels to which financial products are child and youth friendly. Those products which meet the criteria are provided a Child and Youth Friendly Banking Product Certification. Additionally, via the Schoolbank project, CYFI is working with telecommunication agencies and mobile operators to explore the creation of web-based products that will allow the Movement to reach out to even the most marginalized child.
1.7.2 Economic Citizenship Education
As a result of working group input, Economic Citizenship Education is defined by the Child and Youth Finance Movement as an education which combines • social education
• financial education and • livelihoods education
The term “Economic Citizenship” emerged as a suggestion from members of the United Nations Committee on the Rights of the Child.
This concept evolved with the active participation of over 50 NGOs and Education Service Providers. Members of the CYFI Education Working Group, chaired by UNICEF and OECD, pooled their knowledge and shared their expertise to create the concept of Economic Citizenship Education. They have also created the Economic Citizenship Learning Framework which details key learning outcomes that should be seen in various life stages of children and youth. This framework is used to • Guide governments, NGOs, schools and other service
providers who wish to create curricula and programs of social, financial and livelihoods education.
• Allow for organizations who have existing programs to map their learning outcomes against those which are set out by the framework.
With these efforts, the Movement is ensuring a coordinated collaboration and a unified approach to Economic Citizenship Education globally.
In collaboration with partners within its network, CYFI has created a series of publications that help inform and guide the different efforts within the Movement.
1.8.1 National Implementation Guide
This manual acts as a guiding toolkit for national authorities who wish to introduce Child and Youth Finance activities or policies nationally. Overviews of suggested implementation procedures for these initiatives are provided, with main steps outlined. The manual also provides step-by-step guides to specific activities carried out by dedicated committees. These include steps for implementing Global Money Week activities nationally, furthering financial inclusion nationally by financial institutions and by regulatory authorities, furthering Child and Youth Finance Education nationally and undertaking complementary activities relating to research, media and technology.
1.8.2 A Guide to Economic Citizenship
This guidebook features the Economic Citizenship Education Framework to guide the creation and assessment of education programs and curricula which are designed to increase the social, financial and livelihoods skills of youngsters. This Guidebook was created for governments, NGOs, schools and other service providers to create curricula and programs of social, financial and livelihoods education.
1.8.3 Child and Youth Friendly Banking
UNICEF and CYFI co-produced a discussion paper titled “Beyond the Promotional Piggybank: Towards Children as Stakeholders.” The paper outlines some of the key challenges, opportunities and risks that major retail financial institutions in OECD countries can encounter when dealing with the segments of children and youth. The paper uses case studies to highlight the various facets of how a Child Rights Integration in Retail Banking could look like.
1.8.4 The Child and Youth Friendly Banking
The Child and Youth Finance Movement advocates for increased access to appropriate financial products for children and youth. This Certification Guide describes how to obtain a Certificate and is a guide for the individual(s) within the financial institutions who are involved in the creation and dissemination of products.
This manual was developed with the assistance of Deloitte, Houthoff Buruma and KPMG. The guide provides an introduction to the Certificate and its potential benefits, outlines the Certificate Criteria and Control Framework, outlines the certification process and provides more details on the use of the Certificate.
The CYFI Secretariat
Coordinating this global Movement is the work of a dedicated Secretariat, based in Amsterdam. The Secretariat is responsible for promoting and furthering the Child and Youth Finance Movement by involving an increasing number of partners and contributors to the Network. It provides technical assistance for organizations wishing to implement or develop financial programs and services in their countries. The CYFI Secretariat does so by leveraging the expertise from within its network. Other duties of the Secretariat include certification of Child and Youth Friendly banking products, as well as Economic Citizenship Education assessment. The Secretariat is made up of a young team, lead by leading social entrepreneur Jeroo Billimoria.
“Let me start by congratulating the Child and Youth Movement with its
achievements so far. In a short amount of time, the Movement has grown
Herman Van Rompuy, President of the European Council
The Certificate introduces the first global Standard for Child and Youth Friendly Banking Products. As a result, it can benefit both financial institutions (“Financial Institutions“) and the children and youth they serve.
What is the Certificate?
The Certificate is awarded to licensed Financial Institutions for Banking Products offered to children and youth and meeting requisite certification standards (set out in Chapter 3).
The Certificate serves two major purposes:
promoting financial inclusion for children and youth while safeguarding their rights; and
supporting Financial Institutions in the design and development of Child and Youth Friendly Banking Products.
Why this Certificate?
Child and youth friendly banking focuses on the
empowerment and protection of children and youth. CYFI therefore recognizes the importance of establishing and maintaining relationships between children and youth and banks. Such relationships not only help to ensure that children avoid financial exploitation, but also potentially increase their opportunities by empowering them to make positive changes in their lives.
When previously excluded populations gain access to formal banking products, they must be able to use these products in a productive and responsible way, without threat of harm. A Financial Institution offering transparent banking products in language that children and youth understand and in combination with relevant financial education helps to increase the financial competence of children and youth. This competence can help children to grow into well-informed, independent and responsible adults capable of making rational, long term decisions for both themselves and their communities.
A set of global Standards regarding child and youth friendly banking stimulates the development, design, and
benchmark that supports and validates the work of pioneering Financial Institutions worldwide.
Scope of the Certificate
The Certificate is awarded to the following Banking Products and services (e.g. debit card, online banking) supporting such Banking Products (the “Banking Products”):
savings accounts: accounts paying interest but not directly used for making payments; and
current accounts: accounts offering services to make payments.
It is important to note that the CYFI certification standards strictly prohibit current accounts that allow overdrafting.
The scope of the Certificate may be expanded in future years to include other banking or financial services products and services.
Who Can Obtain the
The Certificate can be awarded to any licensed Financial Institution offering a Banking Product that has been operational for six months or more. Prior to requesting certification, the Financial Institution is required to become a CYFI Partner, as outlined at
Only those institutions licensed by their national regulatory authority and guaranteed by a deposit guarantee scheme are eligible to submit their Banking Products for
Benefits of the
Certificate for the Financial
By promoting a positive financial culture for children and youth, institutions can help grow a financially literate and responsible population. Furthermore, the Certificate helps children and youth to develop healthy and enduring relationships with Financial Institutions. Child and Youth Friendly Banking also enhances relationships between Financial Institutions and other CYFI stakeholders, such as governments and NGOs.
The Child and Youth Friendly Banking Product Certificate confers a broad range of meaningful benefits for Financial Institutions. These benefits should only increase as the Child and Youth Finance movement grows and global and national advocacy goals are achieved:
1. A “stamp of approval” from CYFI: backed by financial regulators and policy makers, Financial Institutions, leading NGOs, prominent academics, and multilateral agencies worldwide;
2. Use of the Certificate branding and logo, internationally recognized by key actors in global finance;
3. A tangible illustration of the Financial Institution’s commitment to locally and globally relevant corporate social responsibility;
4. Differentiation from competitors not providing child and youth oriented products;
5. Access to a prominent group of Financial Institutions working to empower children and youth;
6. Global Standards defining the rules for the development of safe and reliable Banking Products for children and youth;
7. Commitment from and access to a new generation of financially capable clients.
The recipients of the Certificate and copy of the
certification will be published on CYFI's website and in the CYFI annual report.
Themes, and Controls
This chapter outlines the certification standard evaluation metrics.
The Standard and
Understanding the Framework
The Standards of this Certificate are captured as eight themes and objectives, broken down into a total of 30 testable Controls:
Each Certificate theme contains a defined objective (e.g. Theme 4: “Reaching unbanked children and youth”).
Each theme has a Control Objective, which stipulates: the following (set of) Controls, when properly met, fulfill the objective of this theme (e.g. Theme 4: “the
following Controls provide sufficient evidence that unbanked children are banked”)
Each theme contains several Controls. Each Control must be met to fulfill the objective of that theme, as well as the overall Certificate (e.g. Control 12: does the bank have an active, documented outreach strategy?)
All Controls of the Certificate must be met by the applicant Banking Product. To meet a Control,
documentation is required, e.g. respecting Control 12: a “Strategy to reach unbanked children and youth with the Banking Product,” or an “Overview of collaborations with local operators to reach unbanked children an d youth”.
Each theme and its objective, Control Objective and Controls are outlined in a separate section below. The required documentation for each Control is also specified.
Testing Controls for Design,
Implementation, and Operational
The Controls are ‘tested’ for various dimensions:
Design test: Each Control should be fully described by the Financial Institution. e.g. for Control 28 “The Financial Institution processes, evaluates, and provides feedback on all complaints regarding the Financial Institution itself or the Banking Product”, the design of the complaints procedure should be provided.
Implementation test: The Financial Institution should provide evidence demonstrating that the Control has been implemented. Respecting Control 28 again, one or more copies of filed complaints need to be presented, and evidence of the response to the complaint (e.g. a letter).
Operational effectiveness test: The Financial Institution needs to provide evidence demonstrating that the Control has effectively operated over a period of at least six months. For Control 28 multiple complaints, registrations of these complaints, responses to these complaints, and evidence that the system has been operational for the requisite six months need to be presented.
During the Certification process, the Controls will be tested along these dimensions:
First, the Readiness Assessment evaluates design & implementation (Section 4.2.1)
Secondly, the Audit evaluates design, implementation, and operational effectiveness (Section 4.2.2)
Flexibility of the Control
Financial laws, regulations and socioeconomic circumstances differ from country to country and the framework provides the flexibility to meet formal laws and regulations, cultural customs and practices, religious customs and economic circumstances. In each country, the Certificate must meet minimum standards ensure that the child and youth friendly banking objectives are met. The table below shows the designated themes. The last two columns indicate whether a theme is required or whether it is subject to local adaptation:
As they are the core Standards of Child and Youth Friendly Banking required themes are fixed;
Controls subject to local adaptation are nationally determined to prevent situations where a specific country cannot include Controls. Controls subject to local adaptation may not be in line with - or may even conflict with - formal laws, regulations, religious restrictions or cultural customs. Please note that “subject to local adaptation” does not mean these themes are optional, but rather that the Controls must be adapted in order to meet the local circumstances.
CYFI recommends that Financial Institutions actively seek cooperation, support, and approval from local regulators, central banks, and consumer organizations wherever they seek to obtain a Certificate. Without such cooperation, CYFI may be unable to award a Certificate. In this eventuality, we recommend the CYFI National Implementation Guide, which provides Financial
Institutions seeking to build national alliances, with useful information.
The Standards in this section are only applicable to Banking Products for which the Financial Institution seeks
certification. Consequently, these requirements do not replace any legal or regulatory requirements of any financial regulator, supervisor, or Central Bank. CYFI advises all Financial Institutions to inform or seek approval from the appropriate authorities before applying for the Certificate. Depending on local preferences, CYFI can either work directly with the Financial Institution, or with the relevant local financial authority. In the latter case, CYFI will reach out to the respective regulatory authority to determine how best to proceed.
Certificate Standards: Fixed and Locally Adaptable
Theme Fixed Subject to Local Adaptation
Availability and accessibility for children and youth √
Maximum control to children and youth √
Positive financial incentive for children and youth √
Reaching unbanked children and youth √
Employing of child and youth friendly communication strategies √
A Financial Education component √
Monitoring of Child and Youth Satisfaction √
Accessibility for Children
Banking Products should be available for and accessible to all children and youth to ensure they gain hands-on experience with the formal financial system. Children and youth then have the opportunity to use safe financial services through which to save their money and conduct banking transactions.
Access to Banking Products should be non-discriminatory and made particularly available to vulnerable children and youth. Consequently, Banking Products should be available and accessible to all children and youth, regardless of gender or socio-economic standing. CYFI recommends no minimum age for clients opening and operating offered Banking Products, and in no case shall such an age be set higher than the applicable legal age as defined under local and / or national law.
The following Controls provide assurance that Banking Products are available for and accessible to all children and youth.
# Control Required Documentation
Available and Accessible to all Children and youth
The following Controls provide assurance that Banking Products are available for and accessible to all children and youth
1. There is no minimum age to open an account for the Banking Product - or the minimum age is, at least, set no higher than the legal age defined in local jurisdiction
Within the scope of the national law, Financial Institutions should engage in alternative solutions (e.g., joint parent-child accounts) to indirectly ensure access
General terms and conditions of the Financial Institution, in which any minimum age requirements are explicitly stated. When legal limitations prevent independent operation of the Banking Product, a summary of potential solutions is required
Laws and regulations applicable to the minimum age of consumers, both generally and specifically for Banking Products
2. There is no minimum age to operate the Banking Product - or the minimum age is, at least, set no higher than the legal age defined in local jurisdiction
Within the scope of the national law, Financial Institutions should engage in alternative solutions (e.g., joint parent-child accounts) to indirectly ensure access
Terms and conditions for the particular Banking Product that indicate the specific requirements regarding any age requirements for its operation
3. The Banking Product should be proactively offered to all children and youth, regardless of gender, race, religion, abilities, beliefs, and social background
Terms and conditions for a particular Banking Product that indicate the specific requirements regarding the age of the child or adolescent in order to operate the Banking Product
Overview of initiatives that have been undertaken to reach children and youth in underserved communities and demographics
Maximum Control to
Children and Youth
For children and youth to become financially engaged and to fully benefit from the experience of owning a bank account, they must be fully involved in the management of their own account. Financial ownership (responsibility and independence) over the account is therefore essential. Banking Products must provide the maximum possible control to the child or youth within the local jurisdiction, thereby promoting financial independence. When
possible, children and youth should be allowed to open and operate their own accounts independently. In cases where there are legal limitations to the level of control by the child, the Financial Institution is encouraged to seek innovative solutions to empower children and youth: examples of such solutions could include requiring signatures from both the adult account holder and the child.
The following Controls provide assurance that children and youth have maximum control over their Banking Product.
# Control Required Documentation
Maximum control to Children and Youth
The following Controls provide assurance that children and youth have maximum control over their Banking Product
4. The Banking Product allows the opening and ownership of an account on a child or child’s name, in accordance with local jurisdiction
Terms and conditions for a particular Banking Product, indicating the extent to which a child or adolescent can independently control his/her Banking Product
Laws and regulations applicable to the legal
independence of consumers in general and specifically for Banking Products
Terms and conditions for a particular Banking Product, indicating the extent to which the child or adolescent has the right to determine the use and transfer of data
Incentive for children and
Banking Products enable children and youth to save their money in Financial Institutions and move away from informal and insecure savings systems. To facilitate children making the move from non-formal to formal savings structures, it is hoped that banks will provide financial incentives in the form of higher interest rates and lower fees, as compared to average market rates. While a child’s or adolescent’s understanding of the costs of having a bank account is important, building their confidence as they enter the formal financial system is more important. Bank accounts should never deplete the amount of money
in the child’s account. Net interest received on the account and possible fees levied on the account should be less than the interest received by the child or youth.
Furthermore, it is expected that children and youth will deposit and manage small amounts of money. In keeping with the concept that Banking Products should be inviting for children and youth, ideally there must be no minimum deposit. Should the Financial Institution find that a minimum deposit is required; the minimum deposit must be set at the most favorable conditions and rates compared to average country benchmarks. Control Objective:
The following Controls provide assurance that the Banking product has a positive financial incentive for children and youth.
# Control Required Documentation
Positive financial incentive for children and youth
The following Controls provide assurance that the Banking Product has a positive financial incentive for children and youth
8. There is no possibility that the
account can be overdrawn
Terms and conditions for a particular Banking Product indicating that an account cannot be overdrawn under any circumstances
Overview of balances of accounts for Banking Products
9. The total costs of using a Banking
Product (including both incurred and tax costs) for a child or youth are less than or equal to the revenues (e.g. interest) received from such a banking account
Terms and conditions for a particular Banking Product indicating that the total costs to the child or youth are less than the revenues
Overview of costs and revenues per account for Banking Products, including comparisons between costs and revenues to the child
10. The Financial Institution does not
charge a penalty on the interest in case of money withdrawal from demand deposits, and only minimal penalties for early withdrawal from term deposits
Terms and conditions for a particular Banking Product indicating that the Financial Institution does not charge a penalty on interest in the case of money withdrawal from demand deposits, and only minimal penalties for early withdrawal for term deposits
11. The Banking Product does not
oblige a minimum initial deposit or requires only a low minimum deposit
Terms and conditions for a particular Banking Product indicating that either little or no minimum initial deposit is required by the Financial Institution
Overview of the first transactions on the new Banking Products
Children and Youth
The driving ambition for the dissemination of Child and Youth Friendly Banking Products is that they be utilized and adopted by the largest number of children and youth possible. Therefore, the success - and indeed the purpose - of these products will be defined by their level of use by children and youth. The Financial Institution must have a
clear outreach strategy for increasing awareness of product availability among children and youth, with a particular focus on children and youth in vulnerable communities. This strategy can include community campaigns, school campaigns, and communication with parents.
The following Control provides assurance that unbanked children and youth are reached.
# Control Required Documentation
Reaching unbanked children and youth
The following Control provides assurance that unbanked children and youth are reached.
12. Financial Institution has a clear outreach strategy and initiatives to reach unbanked children and youth (as well as those with unbanked parents) through the Banking Product
Strategy to reach unbanked children and youth with the Banking Product
Overview of initiatives undertaken to reach unbanked children and youth
Overview of collaborations with local operators to reach unbanked children and youth
Outcome and results of these initiatives to reach unbanked children and youth
13. Financial Institution proactively and strategically reaches out to children and youth in vulnerable
Strategy to reach unbanked children and youth with the Banking Product
Overview of initiatives undertaken to reach unbanked children and youth
Outcome and results of these initiatives
Employing of Child and
The banking and finance world is complex enough for adults, for children and youth it can be overwhelming. Consequently, Financial Institutions offering child and youth friendly Banking Products must ensure that all communication with children and youth is appropriate to and comprehensible for children and youth.
Financial Institutions can, for instance, train staff and host development programs on how to interact with children and youth ensuring constant and effective communication. Actions by banks could take the form of publishing and disseminating guides covering ways to effectively interact with young clients. A staff training program might include
focusing on means of addressing child-only account controls with parents while maintaining an effective relationship with them.
Child and youth friendly language is essential and should be adopted in all communication with children and youth (e.g. through social media, internet, radio and TV
commercials). Such language is simple and avoids complex financial vocabulary.
All communication between children and, the Financial Institution must embody the core principles of the Child and Youth Finance Movement.
The following Controls provide assurance that the Financial Institution applies simple and understandable
communication regarding the Banking Product.
# Control Required Documentation
Employing of Child and Youth friendly communication strategy
The following Controls provide assurance that the Financial Institution applies simple and understandable communication regarding the Banking Product.
14. The Financial Institution applies a
communication strategy tailored for children and youth
Communication strategy regarding the Banking Product
15. The Financial Institution trains
employees how to interact with children and youth to ensure optimal child protection and empowerment
Overview of initiatives taken by the Financial Institution to train employees to interact with children and youth
16. The Financial Institution uses simple
and easily understood language in all written communication with children and youth
Overview of internal language (e.g., grammar, sentences, words) standards or guides in
communications to children and youth. (e.g., letters, reports, statements that have been sent to children and youth)
17. The Financial Institution actively
involves children and youth in improving the child and youth friendly Banking Product
Overview of steps taken by the Financial Institution in order to involve children and youth in improving the child and youth friendly Banking Product
Outcome and results of these initiatives
18. The Financial Institution
processes, evaluates, and provides feedback on all complaints regarding the Financial Institution itself or the Banking Product
Overview of all complaints filed
The evaluation, feedback, and actions undertaken in response to complaints
19. The Financial Institution has an
effective mechanism for complaint resolution, and it is accessible to children and youth
Terms and conditions indicating how clients can file a complaint
Details regarding the official name, scope, regulations and responsibilities of involved entities
Overview of and details regarding complaints, and the results of those complaints