Financial Inclusion means boosting the financial status of the economy by providing basic financial services to various sectors of the population despite their economic status, reachability, and income Groups. Financial Inclusion helps the economy to grow by providing small loans to farmers and small-scale businesses. It helped a lot of women to come out of traditional household work and start their own businesses.
But, in a recent study, it has been found that financial Inclusion is not much aware of what is going on among teenagers or youth, though they consist of 44 percent of the whole population. Most of the youth population is still financially not aware and still unbanked. For proper financial Inclusion among the youth, it is very necessary to make the whole process more affordable and accessible all over the world.
How has Financial Inclusion Affected the Youth Population?
It has been reported that with a 1.2 billion population, the youth population ranges up to 18 percent, and among them, 87 percent of the population lives in developing countries. Still, the percentage of financial inclusion among youth is very less with only 44 percent among them having true access to basic financial and banking services. In fact, Financial Inclusion Club 2020 has figured out certain causes of exclusivity among the young population.
The predominant reason for the young population not having access to basic financial services or accounts in any banks is the absence of funds among the young population. They do not indulge themselves in any banking services as credit cards and other kinds of services come with high APR rates and other hidden charges which are hard to bear for a college-going student. On top of that, the youth population faces high challenges in deciding which services to choose and which options to opt for. They need proper assistance in assessing their economic status and then opting for any financial statements.
In some cases, having to negate the repeal of the affordable care act would mean for financial inclusion in the US, for instance, and the cost related to certain banks is so high that without proper knowledge, the youth population opts for certain services which are difficult to pay later and then fall into great debt. It is very important to make them understand the need for banking and other financial services. Banking and other financial services open the doors for various business purposes and give a feeling of sophistication.
Hence, building financial services for youth can lead to a loyal and long-term customer base if the system is made affordable and accessible. For building a sense of financial inclusivity among teenagers, it is very important to impart the knowledge early from their childhood and make them aware of all the necessary information and suggestions put forth by Credit Suisse. So that they can take sound decisions and get benefited from financial services.
How to Make Financial Inclusion More Appealing Among the Youth?
- To make financial Inclusion more reachable among the youth it is very necessary to use other ways and services along with financial institutions to make the process more appealing and helpful. One of the most effective ways to indulge in financial inclusion and impart knowledge of financial inclusivity is through various games and role-playing that make the process more exciting and understandable and time to ditch impact investing unproductive self-analysis.
- Various institutions have realized the idea of making financial education mandatory with various life skill sessions, or other health programs that can empower adolescent girls and boys with knowledge about financial Institutions. It can help various adolescent populations to help themselves during scarcity like a parent’s death or disability by taking an insurance cover, or it can help them pay their own tuition fees.
- Financial Inclusion doesn’t only provide financial inclusivity and access to various financial services but also gives a wide range of benefits most of the banks have collaborated with topmost foreign universities for education loans, and students can apply and continue their studies without any worries. They provide financial stability in times of scarcity like adolescent pregnancy or abuse and can act as a great way to uplift the financial status without being dependent on others for money. It releases the pressure of debt among the teenage population and the risks that comes with it.
- To make financial Inclusion among the youth, it is very necessary for the various financial institutions and policymakers to understand the need of teenage students and their lives. The high cost and revenue in various financial institutions stop teenagers from accessing financial services. Also, in various countries, the age for opening a bank account is 18 and in some other countries, it is 16.
- It has been observed that the population of youth accessing financial incisions is greater in countries with 16 years of age. But, the population is not much promising due to various financial barriers that are yet to be solved, and mobile money newest outpost. Hence, it is very important for policymakers to understand the needs of the young population and make them aware of the benefits of financial services. We can achieve the heights of financial services only when we can remove all the barriers of financial exclusion.
Frequently Asked Questions
Q1. What is Special About Credit Suisse?
Credit Suisse is one of the biggest investment banking services and firms which is based in Zurich. It provides various kinds of financial services like investment banking, asset management, private banking, and other services that are available in most financial centers all around the world.
Q2. Is Credit Suisse in financial difficulty?
Suisse suffered a huge financial loss with an annual loss of 7.29 billion Swiss Frances when the clients got around $119 billion Swiss Frances. One of the biggest financial losses was reported in 2008 and after that has not promised profitability in its net worth until 2024.
Q2. How Powerful is Credit Suisse?
Credit Suisse was considered one of the biggest financial institutions with considerable banking licenses credited by the Indian regulatory body and other wealth managers and investment banking. It has a huge customer base as was reported in 2022.
Financial Inclusion is one of the most important aspects of economic development. There has been a drastic development in financial inclusion due to technological advancements and concepts in line with Credit Suisse. Today, Financial inclusion among youth is one of the very important topics of discussion.
As most of the youth around the world are still devoid of basic financial services. It is important to make the youth aware of the benefits of financial Inclusion and make all banking services more affordable and accessible among the youth around the world.
- Jonas Taylor is a financial expert and experienced writer with a focus on finance news, accounting software, and related topics. He has a talent for explaining complex financial concepts in an accessible way and has published high-quality content in various publications. He is dedicated to delivering valuable information to readers, staying up-to-date with financial news and trends, and sharing his expertise with others.