Youth - a promising market for micro finance sector.

• Author: Khatoon, Akram

Byline: Akram Khatoon

Universally youth between the age group of 15 to 25 is taken as the most vulnerable segment of population while judging their reliability from any political, economic and social perspective, but despite this fact that this being most efficient and energetic component of a county's workforce is always focused while devising all development strategies.

Pakistan with 38 million adolescents and young adults ranks as fifth having largest population of people between age group of 15-25, but unfortunately due to fragile governance structure, stagnant or rather depleting economic growth rate along with growing political and social conflicts have negatively impacted efficiency and aspirations of this component of country's work force and unfortunately country has failed to create quality jobs and business environments for youth.

Despite launching business loans programs by successive governments right from year 2002 lack of access to formal financial services has been one of the impeding factors hampering mainstreaming youth in economic process. Even in the area of micro financing, financing agencies like Micro Finance Institutions (MFIs), Micro Finance Banks (MFBs) and NGOs etc have reservations/apprehensions while considering loan applications from beginners in business. However it being a vast untapped market for financial services all stake holders of financial sector are coming forward with innovative products to suit young entrepreneurs and students as well. Unlike economically rich countries where number of youth is gradually depleting Pakistan's young population is likely to be 50% of total population by 2050 in view of high birth rate.

The expanding segment of youth population combined with fast advancement in information technology relating to financial sector particularly advent of e-banking and mobile banking etc, promises vast opportunities to youth as financial service providers as well users of services as it is mainly youth who have exposure to latest information technologies.

In order to tap this vast market MFIs and MFBs need to attract youth right from their tender age by offering financial services like school banking accounts or minor accounts not only to inculcate saving habits among children and prime age adults, but also helping positioning of bank in the minds of young customers.

This initiative on the part of micro finance institutions also develops a sense of economic empowerment particularly for...