©The Kenya Post Office Savings Bank (Postbank)
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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 savings culture among the youth in the country.
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