I recently read about how foreign banks bid for a precense in African countries, and was contemplating the role of youth in the banking system.
It seems that banks in Africa are run by two different kinds of entities; local and international. Local entities consist of private single-branch banks as well as chains like Standard Chartered. International entities consist of big names like Barclays and Société Générale. Yet, both kinds of banks are seem to be “serving well-off consumers, state entities, and medium-sized and big businesses”.
Small enterprise, and initiatives lead by youth for that matter, usually require loans of some kind. While the amount of money borrowed from African banks has conventionally been less than deposits, small enterprise still seem to find it difficult to identify, apply for, and communicate with loan providers.
So how can youth participate in banks more such that loans become accessible to their business ideas?
- Start an account at a bank, however small your first deposit. The time in which the money sits in the bank – especially if it is a savings account – counts more than the amount.
- Transferring money in and out of the account shows transaction activity, and will aid your financial credentials if these activities are consistent and not harming your account balances.
- Voice business ideas to your bank; they are in the best position to guide your loan applications, considering that they have oversight over other applications for loans and business ideas.
In short, it is important for young people to participate in their local financial system. Participation will yield an education and opportunity in the financial sector. More importantly, it will create more awareness about building locally-suitable means of lending and investing, which may be eroded if foreign infrastructures are implemented over local systems.
