What is SchoolBank?
SchoolBank aims to increase financial inclusion of children and young people through the school system. Through an innovative multi-stakeholder approach, the goal is to create systems change by providing children and youth with a Child & Youth Friendly bank account that they can use to save money, while at the same time imparting the appropriate education to teach them why and how to save and what their economic rights are.
Check SchoolBank infographic for more information.
How does it work?
The SchoolBank model aims to deliver three basic services to children and youth:
- A one-time banking initiation: providing an account to open, which may include collaterals such as passbooks, ATM cards, check books and/or magnetic cards;
- Continuous educational inputs: providing economic citizenship education and generating financial awareness;
- On-going transaction support: providing withdrawal and deposit facility, enabling cash transfers between accounts, balance inquiry, etc.
How does it help children and youth?
SchoolBank helps children and youth by aiming to meet the demands for banking solutions and products that:
- Increase the availability of quality banking services to cater to the various financial needs of young people throughout the different stages of their lives;
- Reduce the costs of banking, and increase the accessibility of financial services through banking technology, and an extended product distribution network;
- Cater to the needs of the emerging technology-savvy generation and their demand for innovation and customization of financial products and services.
Launched in April 2015, SchoolBank Kerala was a project initiated after India lowered the regulation to open and operate a bank account independently to 10 years old. CYFI partnered with Kudumbashree, Rajagiri Outreach, and NABARD to launch a small-scale pilot of 561 children in the first phase of the project. Having successfully implemented four phases (each reaching more children), the project has scaled to partner with the State Government of Kerala to pursue a state-wide expansion.
Private Education Development Network (PEDN) have collaborated with Oratec Ltd a software development company to create an automated school deposit and withdrawal management information system (e-banking) to promote savings amongst school students. Offering the opportunity for kids to understand how e-banking works by opening and managing their own account, the system also enables financial service providers to equip students with banking skills and fund financial inclusion through mobile money initiatives.