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Postbank Kenya promotes savings, financial education

Postbank Kenya promotes savings, financial education

©The Kenya Post Office Savings Bank (Postbank)​

​​​​​​​​• Lire l'article en fr​ançais •​


 

Postbank Kenya organises wide range of activities in schools all over country to promote savings, financial education

BRUSSELS, 16 July 2018 – ​WSBI member The Kenya Post Office Savings Bank (Postbank)​ has developed tailor-made savings solutions for children, teenagers and young adults. One of their most successful products is the SMATA" youth account, which targets youth aged 12-18. It offers them an affordable and accessible banking product, putting them in the driver's seat and in control of their finances. The opening balance of KSh 200 (around €1.70/US$2) is affordable and helps bringing the youth into the financial system. 

Postbank Kenya also offers the “STEP" account, a “smart, trendy, electronic and portable account designed for the youth". The opening balance is also very low, without charge on deposits and offering branchless banking of course.

Targeting the youth to foster savings and financial inclusion

Students usually earn money from allowances (pocket money, airtime and transport allowances…), student jobs like babysitting or car washing or even as gift on special occasions such as birthdays.

Yet, they do not systematically put much money aside. Promoting a savings culture among young people is crucial: savings help to achieve long term goals, deal with unexpected expenses, facilitate future investments, increase wealth and ensure financial survival. Furthermore, savings represent one of the four pillars of financial independence, together with investing, discipline and avoidance of excessive liabilities.

When it comes to saving, people face several obstacles: lack of planning, lack of budgeting, consumption, life style… Financial education is the solution to overcoming these challenges and create good habits from an early age.

In Kenya, schools act as special distribution channels for disseminating SMATA accounts. All 99 Postbank Kenya branches identify one or two schools within their area of operation and agree with the school administration on appropriate dates for workshops. Most of the activities at schools take place during the Global Money Week. Each year, a different theme is featured. In 2018, activities revolved around the topic “Money Matters Matter​", including drama workshops, drawing, essay writing… All these activities contributing to inculcate a saving​s culture among the youth in the country.​


 

MEET A SMATA SMART SAVER.png
MEET A SMATA SMART SAVER
When fifteen year old Fatumah Abdi Ibrahim opened her Smata Account in 2014, she didn’t know that this would earn her financial independence while at the same time instill a discipline that will empower her for the rest of her life.

 
In an interview, Fatumah said that although she comes from a very humble background she has managed to make this good habit her hobby. “It’s like a hobby to me, it feels good and there is also that feeling of fulfilment,” she says. She advices other children and adults too to save for items they really need instead of spending money on unnecessary goodies. Her savings have facilitated her smooth transition from primary school to high school as she used part of her savings to effortlessly cater for her shopping needs.

 
Fatumah makes her weekly contributions accompanied by her youthful looking grandmother. ‘It feels good, I promise to continue saving even while in secondary school,” the first born in a family of three said as she was about to start her secondary education. Her family is in support of this self-instilled discipline as they have seen it bear fruit.​

 
© Fatumah Abdi Ibrahim during one of her visits to Mariakani branch to make a deposit (The Kenya Post Office Savings Bank)


 

• Learn more about WSBI's members' financial inclusion initiatives •​


Financial inclusion; Financial education