Child and Youth Finance International Company - Research Paper Example

To analyzed opportunities for CYFI, an empirical study was conducted in which a total of 10 executives from different banks were interviewed.  It is concluded that the provision of CYFI can only be achieved through a multi-agency approach which includes policymakers’ legislators, bankers, educators, and other finial services.  This partnership is necessary to overcome the risks associated with contracting with minors, the relative immaturity of minors relative to their ability to understand and take responsibility for financial management and other challenges that will be identified in this research report analysis.

According to the CF access to financial products by youth and children is described as either a savings or checking account held by a child or a young person who is under the age of 18.  The child or young person is also required to have significant control over the account and includes means by which the child or youth has “financial incentives”, includes strategies for communicating employment, is connected to financing the child or youth’s education, canvasses the child or youth’s “satisfaction”, and has “internal controls” for monitoring these factors. Once the criteria as set forth below is met, the financial institution offering CYFI is eligible for certification for providing Child and Youth Friendly Banking Products (Child & Youth Finance International).

            The Child and Youth Finance Movement began the initiative for encouraging and implementing policies and services that comport with five core principles. 

• The first of these core principles are informed by international human rights and in particular the Convention on the Rights of the Child 1989.  In this regard, the first core principle maintains that children and young people are entitled to human and economic rights and protections. 

• The second core principle advocates that institutions operate their business affairs so that children and young people are protected “from all exploitation” especially “financial exploitation”. 

• The third core principle holds that all children without distinction are entitled to financial services. 

• The fourth core principle states that the “movement is committed to ensuring” children have an amicable relationship with financial institutions.

• The fifth core principle is the movement’s commitment to remaining “open and collaborative to all stakeholders” (Child and Youth Finance International).

Banking policies concerning children and young persons under the age of 18 are currently tightly regulated and do not provide the kind of economic empowerment envisaged by the Child and Youth Finance International.