2016 ─ CYFI Annual Report 2016 by Child & Youth Finance International

Child & Youth Finance International

ANNUAL REPORT 2016

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We thank you all for your invaluable support which in 2016 helped us deliver the results reported herein. 2

Child & Youth Finance International

ANNUAL REPORT 2016

LETTER FROM THE SECRETARIAT Dear Reader, 2016 was an important one for CYFI. With guiding input coming from a very large network consultation, the 2020 CYFI Strategy was developed and launched. Moving forward CYFI will focus increasingly on fulfilling its role as a Systems Change organization- driving innovation, sharing knowledge, rallying stakeholders and propelling joint action. As part of this approach, our main advocacy events, Global Money Week and the Global Inclusion Awards continued to break records. Global Money Week alone reached over 7 million young people in 132 countries while we continued to honor and recognize outstanding achievements in Economic Citizenship during the Global Inclusion Awards held this year at the Stockholm City Hall in Sweden. Demonstrating innovation, SchoolBank continues to expand, with pilots running in 6 countries across Europe, Asia and MENA by the end of 2016. While Ye!, our youngest project, is growing at a considerable pace, having held 3 pitching events and 6 boost camps over the course of the year. We are immensely confident for the future of these innovations and what they can teach us and the network! For everyone that has helped to make 2016 the year that we are all proud to look back upon, thank you! If you are not yet involved, please do contact us straight away so we can help you create an economically empowered generation of young people in your country! 4

CONTENTS

LETTER FROM THE SECRETARIAT..............................................................................................4 ABOUT CHILD AND YOUTH FINANCE INTERNATIONAL......................................................6 Theory of Change..........................................................................................................................6 Systems Change...........................................................................................................................7 Our Unique Approach: Collaborative Systems Change.........................................................7 STRATEGY 2020.............................................................................................................................8 Network Consultation Process...................................................................................................8 Core Drivers...................................................................................................................................9 Segmented Approach................................................................................................................10 ACTIVITIES IN 2016 BY STRATEGIC OBJECTIVE.................................................................12 CYFI 4 Main Strategic Objectives.............................................................................................12 Strategic Objective 1 - Global Platforms..................................................................................12 Global Money Week...................................................................................................................12 Annual Awards............................................................................................................................14 Summit Romania.........................................................................................................................18 G20................................................................................................................................................19 Strategic Objective 2 - Regional and National Platforms......................................................20 Stakeholder Meetings and Regional Coordination..............................................................20 Diagnostic Tool............................................................................................................................24 Strategic Objective 3 - Education and Inclusion...................................................................26 SchoolBank.................................................................................................................................26 Economic Citizenship Education Curriculum Assessment and Endorsement..................27 CNRP.................................................................................................................................27 Thought Leadership....................................................................................................................27 Strategic Objective 4 - Innovations..........................................................................................28 Ye!................................................................................................................................. 28 Operations and Resource Mobilization...................................................................................30 GOVERNANCE AND OVERSIGHT..............................................................................................32 Supervisory Board .....................................................................................................................32 Executive Committee..................................................................................................................33 Audit Committee..........................................................................................................................33 Nominations Committee............................................................................................................33 CYFI Secretariat Team................................................................................................................34 Management Team.....................................................................................................................34 Staff...............................................................................................................................................34 Interns..........................................................................................................................................34 LOOKING AHEAD TO 2017.........................................................................................................35 ANNEX A: GLOSSARY OF TERMS.............................................................................................37 ANNEX B: FINANCIAL STATEMENT AND INDEPENDENT AUDITORS REPORT................43

ABOUT CHILD AND YOUTH FINANCE INTERNATIONAL Theory of Change In June 2010, 126 experts from 40 countries gathered for the first Child and Youth Finance meeting in the Netherlands to share their insights and expertise in developing the Movement as well as the organization’s Theory of Change. Over the course of June 2010 – July 2011, they came together in dedicated working groups for each of the key strategic areas of the Movement. The CYFI Research Working Group comprised of leading academics in the fields of financial literacy and children’s rights, combining their expertise to develop CYFI’s Theory of Change in the form of a detailed model of Full Economic Citizenship. CYFI’s model poses that financial education, social and livelihoods education, and financial inclusion are the building blocks of empowerment and financial capability that underpin Economic Citizenship for children and youth. Financial education includes instruction and/or materials designed to increase financial knowledge and skills. Social education & livelihoods education

are the provision of knowledge and skills that change individuals’ understanding and awareness of their rights and the rights of others. It also involves fostering of life skills. Financial inclusion is access to appropriate, quality, and affordable financial services. Empowerment is the sense of confidence and efficacy experienced by children and youth through controlling their own lives, claiming their rights, and having empathy toward others. Financial capability has individual and structural components. It combines a person’s ability to act with the opportunity to act. To be financially capable, people one must have financial knowledge and skills as well as access to appropriate financial services to enhance social and economic well-being. At the center of the Theory of Change lies the ultimate beneficiary, the individual child or youth. When developing the CYFI Theory of Change, the Research Working Group used the UN Convention on the Rights of the Child as its base. The Convention outlines the child’s right:

• To survive; • To develop to the fullest; • To protection from harmful influences, abuse, and exploitation; and • To participate fully in family, cultural and social life. States that are parties to the Convention recognize that poverty and unemployment severely restrict, if not completely deny, children and youth these fundamental rights. In order to reach the goal of Economic Citizenship, the group concluded that a concentrated effort of intertwined development interventions is necessary. CYFI’s Economic Citizenship Model states that holistic financial, social, and livelihoods education, when implemented in combination with financial inclusion, can lead to greater capability and empowerment, thus helping children and youth to become thriving economic citizens (Figure 1). In the next phase, we’ll review and, if needed, update this model based on new research and the learnings from the last 5 years.

Figure 1. CYFI Model of Economic Citizenship Economic Citizenship ECONOMIC CITIZENSHIP • Reduced income & asset poverty • Economic & social engagement • Sustainable livelihoods • Economic & social well being • Rights for & responsibilities to self, family, and others

Financial Education

Source: Child & Youth Finance International, 2011 6

Financial Capability

Empowerment

Social Education

SURROUNDING ECOSYSTEM

Financial Inclusion

Systems Change From the outset, we realized that our large-scale challenge requires large scale thinking, and that the current situation - as well as the barriers on the way to change - is the result of the systems in which we live. Like Russian “Matryoshka” dolls that fit one inside the other, most systems contain other systems and are contained within larger systems: cells within organs, within individuals, within communities, within counties, states, and continents. Changing a system affects both the systems within it and the systems in which it is nested. The challenge for change agents is choosing the right level, or levels, of scale for the changes they seek. The answer is often working at multiple levels: top down, bottom up, outside in, and inside out. Most of the qualities of a living system are aspects of a single fundamental network pattern: nature sustains life by creating and nurturing communities and lasting change requires a critical mass or density of interrelationships within a community. It is difficult, however, to direct a living system. You can only disturb it by introducing information that contradicts old assumptions, by demonstrating that things people believe they cannot do are already being accomplished somewhere, by inviting new people into the conversation, and by rearranging structures so that people relate in ways they’re not used to and presenting issues from different perspectives. At the same time, one can create conditions

that take advantage of the system’s capacity for generating creative solutions: nurture networks of connection and communication, create climates of trust and mutual support, encourage questioning, and reward innovation. It is CYFI’s role as a leader and change agent to recognize emergent opportunities, articulate them, and incorporate them into organization and/or program designs.

Our Unique Approach: Collaborative Systems Change To meet the considerable challenges facing us, we pioneered a new way of thinking and designed our “Collaborative Systems Change” management approach. Uniquely suitable for tackling large-scale problems, this innovative model recognizes that there is no one big answer to complex problems, but rather a plethora of smaller efforts working in harmony that propel the entire machine forward. To drive the necessary change and combat cycles of poverty, a wider-scale, long-term systems change approach is needed. At the center of this Collaborative Systems Change model, CYFI serves as an agent of change driving innovation, demonstrating proof of concept, sharing knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions.

Our approach relies on 3 complementary elements: Innovation: as organizations are often unwilling to invest time, money and effort into new and untested approaches, it is our role as an agent of change to offer both innovation and proof of concept. Collaboration: for a lean organization such as CYFI – which does not possess the means of the UN, OECD or even large international NGOs – the way to affect global-scale change relies on highly effective collaboration between different types of organizations, in order to create the needed critical mass of efforts. Expert Change Agent: at the center of this model, we activate the collaborative network and affect implementation by driving innovation, exchanging knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions. The combination of these elements is the key to our exponential growth with very modest resources in such a short period of time. Unlike advocacy organizations aimed to raise awareness, we go further and offer our network partners concrete tools and road maps to implement changes that will gradually alter the ecosystem of youth economic empowerment in every country in which we work. 7

STRATEGY 2020 Five years after the establishment of CYFI, the time came to reexamine our strategy for the next five years and prioritize our actions. We have based this revision on certain trends that we have analyzed, and the feedback from the partner network.

Another important demand from the youth in the CYFI network has been for support in entrepreneurship issues. This links strongly to CYFI’s third pillar; livelihoods. Thus, CYFI will focus more in this issue in the coming five years.

One of the most encouraging trends we have seen is that the landscape has shifted from being comprised of isolated players in the field of ECE, to more coordinated and government-led initiatives. This is a positive development. However, financial inclusion and access for the young has remained a challenge as banks do not yet see the business case. The advent of Fintech has meant that technology in the banking sector has advanced at a high pace, and with it the opportunity to provide low-cost financial products to the marginalized. In light of this, CYFI is partnering more closely with Fintechs to explore innovative solution to market access.

Network Consultation Process

Being a network organization, an in-depth network consulting process was at the core of defining the CYFI 2020 Strategy. We thus formulated a structural three-tier network consultation process: ❶ Network Survey (320 respondents): A forward-looking survey (i.e. what do you see as CYFI’s role going forward) was sent out to the network in April 2016.

❷ In-depth interviews (~40 interviews):

Consultants from McKinsey and Deloitte had in-depth calls with partners and stakeholders in order to ensure objective responses. A mix of different types of stakeholders, in terms of sector, geography, and level of support to CYFI thus far (i.e. a combination of weak and strong supporters), were interviewed. ❸ Regional Webinars (~40 participants):

6 webinars (one per region) were held at the end of May/early June 2016. The goal of these was mainly to test some of the hypotheses that came out of the surveys and calls. In total, roughly 400 stakeholders were consulted in this process. A summary of the strategy consultation process and the main takeaways are shown in Figure 2.

Core Drivers

emphasizing the importance of the FI/ECE integrated approach.

The outcomes of the network consultation process formed the core for defining the CYFI 2020 Strategy, a strategy based on the following drivers: • Approach: CYFI will continue with the Collaborative System Change approach. This means that CYFI aims to achieve large scale, structural change by driving innovation, sharing knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions. Unlike advocacy organizations, which only raise awareness, we go further and offer our network partners concrete tools and road maps to implement changes that will gradually alter the ecosystem of Full Economic Citizenship for children and youth in key countries. In addition, although not a direct programming organization, CYFI will support a limited amount of SchoolBank pilots, in order to test innovations that can later be scaled by organizations in the network.

• Stakeholders: CYFI will primarily work with governments while ensuring that other stakeholders, especially financial service providers and civil society organizations, are actively involved in the process. • Role: CYFI will take a segmented approach in working with countries. This means that CYFI will play an adaptable role and offer different services to countries, depending on the countries’ level of advancement towards Economic Citizenship. The roles are: - Advocate for 150 countries in the CYFI network, - Network Connector & Expert Hub for 30-40 “Mid Improvement Opportunity” and 15-20 “High Improvement Opportunity” countries, - Network Advisor for 15-20 “High Improvement Opportunity” countries.

• Focus: CYFI will focus increasingly on Financial Inclusion while continuously

TOOLS

1 Survey

2 In-depth calls

DESCRIPTION

• •

• • •

• •

Webinars

•

Forward looking survey (i.e. what do you see as CYFI’s role going forward) sent out to the network 320 respondents

Consultants from McKinsey and Deloitte have had in-depth calls with partners and stakeholders A combination of weak and strong supporters has been interviewed ~40 interviews took place

6 webinars (one per region) were held at the end of May/early June Goal: To test some of the hypotheses that came out of the surveys and calls ~40 people participated in the webinars

MAIN TAKEAWAYS • • •

• • •

Lack of resources (including money and time) is the main challenge for stakeholders in achieving 100% FEC (which might reflect that FEC is not a top priority) Stakeholders see a role for CYFI mainly as Network connector, expert hub, and advocate Documenting/publishing, network activities, and GMW are considered the most useful CYFI activities going forward

Concentrate on financial inclusion and relationships with public authorities Become the global leader of advocacy activities Be distinct by becoming a reference provider of strategic and methodologic support. Build upon existing indexes to have an FEC adapted composite ranking

Feedback heard across regions: • Network connector role important (e.g. regional meetings) • Publications and best practices (not necessarily academic papers) would be very valuable • A tool to assess our performance on FEC would be very useful – however, we should see if we can partner with other initiatives (e.g. Finscope surveys, OECD, AFI, WB)

Figure 2: Summary of the network consultation process and main takeaways 9

Segmented Approach Through CYFI’s experience in its first five years, and the recent Network Consultation, it has become evident that different countries need different types of support in order to achieve Economic Citizenship. While some CYFI activities are relevant for all countries (e.g. Global Money Week), other activities are relevant to countries which are in the beginning stages of integrating nationwide Economic Citizenship. Yet another set of activities are relevant to those countries which have still to be convinced to take the initial steps on this journey towards Economic Citizenship. This means that to successfully achieve the 2020 strategic goals, CYFI must take a segmented approach in working with countries, based on the country’s level of advancement in Economic Citizenship. This is outlined in Figure 3. CYFI can play three main roles which are in line with its systems change approach. These roles are referred to as Advocate: (Role A), Network Connector & Expert Hub: (Role B) and Network Advisor (Role C). These are further detailed in the following section. Determining whether CYFI plays a role A, B or C in an individual country is determined by:

❶ CYFI understanding of the country status

with regard to Economic Citizenship; ❷ The willingness of the stakeholders in the country to increase Economic Citizenship; ❸ CYFI’s traction and network within the country; and ❹ The availability of data to prove impact.

Role A: Advocate

For all countries in the network (150 by 2020), CYFI will play the role of Advocate. The goals are to:

• Create awareness: Bring attention to the topic at the global and national level and serve as a low threshold activity for organizations to get involved in the CYFI movement and (eventually) develop programs and/or policies; • Encourage: Stimulate organizations to advance their efforts in FI, ECE and Entrepreneurship by recognizing and endorsing those parties that achieve impact and demonstrate innovation; • Highlight gaps and opportunities: Bring certain gaps and opportunities to the attention of policy makers so they can take action to increase Economic Citizenship. These can be opportunities in terms of launching new policies, activities, programs, or products or improving existing ones.

Role B: Network Connector & Expert Hub

For a selection of ‘Mid Improvement Opportunity’ countries (30-40) and ‘High Improvement Opportunity’ countries (15-20) CYFI will go beyond the role of advocate and support these countries with networks and expertise. The goals are to: • Connect: To promote cross-organizational learning to encourage more rapid take-up of FI, ECE and/or entrepreneurship at the national or organizational level, through replication or innovation models; • Generate and Share knowledge: To ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations. Some of this knowledge will be relevant and open to countries beyond the target countries selected here; • Facilitate Technical Assistance (TA) support: In our role as Network Connector and Expert Hub, we will also link organization in need of TA support, to the right TA providers in our network.

COUNTRIES AND RATIONALE

CYFI Role: A For 150 countries

All 150 countries in the network • • •

CYFI Role: A + B For 30-40 countries

Most countries can benefit from more transparency on their performance We need to track what happens in high ranking countries, to collect best practices To highlight innovations from all countries

30-40 mid improvement opportunity FEC countries •

These countries work form a strong base and don’t need hands-on support, but would benefit from documentation of best practices and network opportunities

CYFI Role: A + B + C For 15-20 countries 15-20 high improvement opportunity FEC countries •

A: Advocate B: Network Connector & Expert Hub C: Network Advisor Figure 3: Different roles CYFI for different segments of countries 10

T hese countries require more in-depth support to kick start their work on FEC

Role C: Network Advisor

For a selection of ‘High Improvement Opportunity’ countries, CYFI will provide more hands-on support. The goals are to:

• Pilot Innovations: To provide to the network examples of how different approaches can be implemented in differing circumstances to encourage those that do not know how or where to begin. • Share expertise: To increase the number, quality, and scale of organizations engaged in offering policies or programs in ECE, FI, and/or entrepreneurship. • Provide or facilitate TA support: To ensure that stakeholders are receiving the exact type of assistance desired and suitable to their particular context in order to achieve Economic Citizenship, either directly by the CYFI secretariat, or through the TA providers in our network.

ROLE A: Advocate

B: Network Connector & Expert Hub

C: Network Advisor

LEVEL OF AMBITION • • • •

Global Money Week Global Inclusion Awards Endorsements (curriculum & product) National Economic Citizenship Implementation Tool (internal) (for ~100 selected countries)

• • • •

Research, best practice sharing & documentation Summit, (sub) Regional Meetings TA Facilitation (mostly through CNRP for ‘mid’ FEC countries) Ye!

•

Pilot Programs for proof of concept (e.g. SB or equivalent FI projects) Workshops and trainings (e.g. product development workshops) TA (directly and through CNRP)

• •

Figure 4: CYFI activities by role

ACTIVITIES IN 2016 BY STRATEGIC OBJECTIVE CYFI 4 Main Strategic Objectives

Economic Citizenship Education and safe and reliable banking services

Child and Youth Finance International has four main strategic objectives which guide its decision making activities, partnerships and investments:

❶ Global Platforms

On the international level continue to create alliances among policymakers and financial regulators to further increase Economic Citizenship Education and access for children and youth at national levels

❷ Regional and National Platforms

Building and maintaining national and regional collaborations and networks. We wish to ensure that countries have or are developing national strategies for the inclusion of children and youth in the financial sector

❸ Education and Inclusion

The main objective of education and inclusion is to help children and youth under the age of 18 gain access to high quality

Objectives

❹ Innovations

The main objective of Innovations is to develop and check the feasibility of innovations which can support the goals of the Movement and which are based upon the Movement needs. During 2016 this mostly consisted of further building up Ye!. The major activities during 2016 at Child and Youth Finance International have been focused on all four objectives, with a substantial amount of time and effort dedicated to the top three objectives, that is: Inclusion and Education, Regional Platforms and Global Platforms. Innovations has focused more on developing the Ye! project. Operations and Resource Mobilization: Though not considered a strategic objective, Operations and Resource Mobilization (fundraising) are critical to the functioning of the Secretariat as they provide the needed backup to all activities within the organization.

2016 Euro Amount

2016 % of Expenses

Education and Inclusion

122.286

272.865

18%

Global Platforms

361.825

24%

336.741

23%

Regional and National Platforms

420.034

28%

380.622

26%

Innovations

298.954

20%

217.690

15%

Operations

259.770

17%

219.475

15%

Fundraising

50.568

53.169

1.513.437

100%

1.480.562

100%

Total

Figure 5: Spend per objective 12

2015 Euro Amount

Strategic Objective ❶ Global Platforms Continue to create international level alliances between policymakers and financial regulators, to further increase financial education and access for children and youth at national levels.

Global Money Week Global Money Week (GMW) is a money awareness celebration. The goal is to increase awareness among children and youth about money, saving, creating livelihoods, gaining employment and becoming an entrepreneur through fun and interactive activities. Every year, entire communities take action to create awareness, challenge out of date financial policies and give young people the tools and inspiration they need to shape their own future.

2015 % of Expenses

• 24 % Global Platforms • 28% Regional & National Platforms • 8% Education & Inclusion • 20% Innovations • 17% Operations • 3% Fundraising

GMW takes place annually, during the second week of March, this year taking place 14-20 March. The events are organized by schools, universities, government ministries, central banks, financial institutions, members of the civil society and youth worldwide. This year marked the 5th anniversary of Global Money Week, and it was by far the biggest yet! The week has steadily grown over the years. Born out of Aflatoun day (which takes place every 17th of March since 2006, ChildFinance day was first held in 2012 and expanded to take place over the course of a week in 2013. The Network’s enthusiasm for a week dedicated to teaching children about important money issues has supported Global Money Week’s reach and growth over the past 5 years. This year Global Money Week’s theme was ‘Take Part. Save Smart!’ because of the

Figure 6: GMW country growth

importance for children and youth to learn and take part in clever cost-careful habits from an early age, in order to avoid financial exclusion and develop key money-managing skills for later in life. The Week’s three key messages linking to the theme were Save knowledge, Save for your career, and Save money. Save knowledge Ensuring children and youth receive education about money matters can pave the way for the next generation of economically empowered citizens. The week is all about raising awareness about the importance of financial literacy for youngsters worldwide and giving them the know-how to make economic decisions.

system, help them understand how to manage money wisely, and highlight how important it is to save for their futures. Save for your career There is increased recognition around the importance of youth investing in their future. Through the development of key livelihood skills, or by means of entrepreneurship, children and youth can be socially and economically included later in life. Global Money Week saw once again huge growth, as over 7 million children and youth across 132 countries took part in 33.000+ events organized by 13.950 organizations. Furthermore, for the first year we were able to gather the indirect reach of our partners, which reached an impressive 100 million!

Save money Promoting the importance of opening savings accounts for children and youth is a great way to include them in the financial

Figure 7: GMW youth growth 13

Annual Awards The Global Inclusion Awards Ceremony celebrates the efforts and successes of government authorities, financial institutions and civil society organizations who have worked to achieve greater financial inclusion and education for young people, as well as innovations in the field of Child and Youth Finance from around the world. This year the event was held on November 28th in Stockholm, Sweden, combining workshops, lectures and the presentation of the Global Inclusion Awards in the glamourous Golden Hall of the Stockholm City Hall. The workshop sessions were made possible through the generous support of the Swedish Financial Supervisory Authority, the Swedish Royal Coin Cabinet and Swedbank. In addition to the workshops and awards ceremony, a two-day boost camp on youth entrepreneurship was held for participants from the Ye! Community at the McKinsey offices in Stockholm on Nov. 28th &29th. Interactive workshop sessions were held on November 28th where a diverse range of policymakers, practitioners, researchers and educators came together to discuss the importance of, and explore promising implementation models for the financial inclusion and education of children and youth. These workshops were facilitated by CYFI Secretariat staff with presentations from finalists in the various Global Inclusion Award Categories. The workshop sessions 14

provided the opportunity for finalists to share their initiatives and learn from the experiences of others. The workshops covered the following themes: • National Strategies for financial inclusion and education for children and youth; • Global Money Week partnerships and activities; • The Swedish Experience with youth financial literacy; • Challenges in scaling up programming and reaching unbanked youth; National presentations were given by Armenia, Denmark, Egypt, Fiji, Ivory Coast, Kyrgyzstan, Morocco, Russia and Zambia. Participants were able to engage with the speakers to learn more about their experiences and how they could be applied in their home countries. Participants were also given the opportunity to brainstorm solutions with the speakers on the challenges that they were facing. The workshop concluded with a presentation on the history of the Central Bank of Sweden and a tour for the participants of the Royal Coin Cabinet. The Awards Ceremony brought together nearly 150 youth and adult delegates from government, civil society, private sector and academia to the Stockholm City Hall to honor the winners and finalists in each of the 2016 Global Inclusion Award Categories. Ms. Lone van Roosendaal, a popular TV and musical actress from the Netherlands, served as the Master of Ceremonies for the

event. Mr. Wessel van Kampen, Managing Director of CYFI, welcomed all participants and thanked them for their continued support to the Child and Youth Finance Movement. Ms. Therése Wieselqvist Ekman, Head of Financial Education at the Swedish Financial Supervisory Authority, gave the official opening address, emphasizing the importance of economic citizenship for children and youth throughout the world. The Ceremony also provided the opportunity for Ms. Jeroo Billimoria, Founder of CYFI, to say her official goodbye through her transition from Managing Director to co-Chair of the CYFI Supervisory Board. Ms. Billimoria thanked the partners in the CYFI network, and the staff at the CYFI Secretariat, for making the Child and Youth Finance Movement and the Global Inclusion Awards happen. After the awards were presented, Ms. Natascha Beinker, Deputy Head of the German Federal Ministry for Economic Cooperation and Development, gave the closing address, announcing that the 2017 Global Inclusion Awards would be held in Berlin alongside Germany’s G20 presidency. The Awards presented were: • Child & Youth Friendly Banking Award, • Civil Society Achievement Award • CYFI Country Award • CYFI “Global Money Week” Award • Global Youth Entrepreneurship Award • Outstanding Youth Economic Citizenship Award

❶ Child & Youth Friendly Banking Award

The Child & Youth Friendly Banking Award acknowledges the accomplishments of financial service providers who are pioneering innovative and original child and youth friendly financial products, combined with an education component, delivered through a variety of media channels and employing a variety of learning methodologies.

FINALISTS: JC Bank of Georgia, Georgia “sCool Card Business school” | PKO Bank Polski, Poland “School Savings Bank (SKO in Polish)” | Sberbank, Russian Federation Palms (Ladoshki) Payment Card | nimbl LtdParentPay ltd, United Kingdom “nimbl Banking for Young People” | The People’s Own Savings Bank (POSB), Zimbabwe “Youth Account and Junior Save Account”

Specific evaluation criteria include: • Bank develops or provides products and services that are consistent with the Child and Youth Friendly Banking Principles. • Bank has exemplary partnerships with schools and/or community centers. • Bank develops and is actively engaged in financial education programming in collaboration with civil society and education authorities • Banks develops original and novel television, radio, or online programs to aid financial education of children and youth

❷ Civil Society Achievement Award The Civil Society Achievement Award acknowledges the accomplishments of NGOs, child and youth serving organizations, and other representatives of civil society, who have effectively implemented outstanding financial inclusion and financial, social and livelihoods education programs in the field. Successful applicants should be committed to the advancement of Economic Citizenship, highlighting creative cost-effective approaches that make a significant impact in the lives of children and youth.

WINNER: Belarusbank, Belarus “Children/ Student Card. Smart School Education Program”

Specific evaluation criteria include: • Demonstrating leadership in inspiring change while developing innovative

approaches that solve pressing needs facing children and youth. • Innovative partnership building, including private-public initiatives and combined efforts with financial service providers and other nonprofit organizations. • Tracking and documenting results that show a positive, tangible and sustainable impact on the lives of children and youth. • Demonstrating a long term commitment to the communities they serve.

WINNER: Opportunity International (OI), Uganda “Opportunity Girls Education Challenge” | FINALISTS: CARE, Burundi “POWER Africa” | Canadian Foundation for Economic Education, Canada “Talk With Our Kids About Money (TWOKAM)” | Moneycompass Fundation (Pénziránytű Alapítvány), Hungary “PontVelem (Scorewith-Me)” | International Transformation Foundation (ITF), Kenya “Patriana Educational Centre: Join the Pipe Water Station | Camfed, Zambia “Shaping My Future”

❸ CYFI Country Award The CYFI Country Award acknowledges the accomplishments of government authorities (like central banks, ministries of education and so on) in building alliances among key national stakeholders, initiating child and youth friendly financial regulation and expanding the reach of quality Economic Citizenship Education through formal and non-formal education channels.

Specific evaluation criteria for this award include: • Country demonstrates exceptional accomplishments and innovation in delivering financial education and inclusion policies and programs for children and youth. • Country builds strong alliances among policymakers and financial regulators. • Country demonstrates an exceptional strategy to implement Child and Youth Finance initiatives. • Country demonstrates substantial efforts in building alliances among local stakeholders. Americas & The Caribbean REGIONAL WINNER: Central Bank of Paraguay, Paraguay “La Estrategia Nacional De Inclusión Financiera De Paraguay” | REGIONAL FINALISTS: Financial Consumer Agency of Canada, Canada “Children/Student Card. Smart School Education Program” | Superintendencia de Bancos de Panama, Panama “Financial Education Program: Better Decisions Starting Today”

(“Programa de Educación Financiera: “Mejores Decisiones, Desde Hoy” Europe & Central Asia REGIONAL WINNER: Central Bank of Armenia, Armenia National Financial Education Strategy, Curriculum Integration, “My Finance Month” | REGIONAL FINALISTS: Financial Services and Markets Authority (FSMA), Belgium “Wikifin.be” | National Bank of the Kyrgyz Republic, Kyrgyzstan “National Strategy; Global Money Week; National Committee Formation” Africa REGIONAL WINNER: Central Bank of Mozambique, Mozambique “Implementation of Financial Education Programme of Bank of Mozambique” and Nation-wide Savings Campaign “Dia Mundial Da Poupança 2015” | REGIONAL FINALISTS: Ministry of National and Technical Education & Ministry of Finance, Ivory Coast “Financial Education” | Microfinance Unit (Ministry of Finance), Swaziland “Financial Inclusion Strategy,” “Financial Education for Children and Youth,” and “Financial Education Curriculum for Teacher Training” Middle East & North Africa REGIONAL WINNER: Egyptian Banking Institute, Egypt “Shaping the Future Initiative” | REGIONAL FINALISTS: Higher Council for Childhood (HCC) – Ministry of Social Affairs, Bank of Lebanon, Lebanon “National Strategy on the Financial

Education” | The Moroccan Foundation for Financial Education, Morocco “National Strategy on Financial Education” Asia & The Pacific REGIONAL WINNERS: Reserve Bank of Fiji; National Financial Inclusion Taskforce (NFIT), Fiji “National Financial Literacy Strategy 2013-2015” | Bank of Mongolia, Mongolia “National Plan for Financial Literacy”| REGIONAL FINALIST: Australian Securities and Investments Commission, Australia “National Financial Literacy Strategy 2014-2017” ❹ CYFI Global Money Week Award The CYFI “Global Money Week” Award will acknowledge the efforts and accomplishments of countries and schools in implementing “Global Money Week” March 14-20th, 2016 at the national level.

Specific evaluation criteria for this award include: • Country demonstrated exceptional diversity, efficiency and innovation in the GMW activities. • Country reached a remarkable number of children and youth. • Country demonstrates substantial efforts in engaging and collaborating with different local stakeholders including financial service providers and civil society organizations. • Country conducted GMW activities in a cost effective manner.

GLOBAL WINNER: Ministry of Finance of Russian Federation, Russian Federation SPECIAL RECOGNITION: National Bank of the Republic of Belarus, Belarus SPECIAL RECOGNITION: Egyptian Banking Institute, Egypt Americas & The Caribbean REGIONAL FINALISTS: Ministry of Education, Autorregulador del Mercado de Valores de Colombia – AMV, Asobancaria, Banco de la República, Banca de las Oportunidades, Fundación Plan, Fasecolda, Ministerio de Educación de Colombia, Colombia | Educación Financiera BBVA Bancomer, Museo Interactivo de Economía (MIDE), Educación Financiera Banamex, Mexico | Superintendencia de Bancos de Panama, Panama Europe & Central Asia REGIONAL FINALIST: Danish Bankers Association; Danish Association of Mathematical Teachers, Denmark Africa REGIONAL FINALISTS: Central Bank of Nigeria (CBN), Banker’s Committee, Nigeria | Bank of Zambia, Securities and Exchange Commission, Ministry of Finance, Ministry of General Education, Pensions and Insurance Authority, Zambia | The People’s Own Savings Bank (POSB), Zimbabwe

Middle East & North Africa REGIONAL FINALISTS: Eghtesad Novin Bank, Iran | Fondation Marocaine pour l’Education Financière, Morocco

Asia & The Pacific REGIONAL FINALIST: Daffodil International University, Bangladesh Bank, Prime Minister’s Office of the Government of the People’s Republic of Bangladesh, Bangladesh | Ministry of Education, Brunei Darussalam |Central Bank of the Philippines, Philippines

❻ Outstanding Youth Economic Citizenship Award The Outstanding Youth Economic Citizenship Award highlights the activities of children and youth to raise awareness of the importance of financial education and/or financial inclusion for young people, both in school and/or in other community settings.

❺ Global Youth Entrepreneurship Award The Global Youth Entrepreneur Award is designed to celebrate exceptional young entrepreneurs who are running an enterprise which has the potential for high job creation and sustainable impact. The Global Youth Entrepreneur serves as an inspiration to other young entrepreneurs around the world.

Specific criteria for the Outstanding Youth Economic Citizenship Award 2017 are as follows:

Specific evaluation criteria of the Global Youth Entrepreneur Award and special recognitions include: • The entrepreneur is running a successful, revenue generating enterprise. • The enterprise has high potential for growth. • The enterprise has a positive impact on society. • The enterprise has high potential for sustainable job creation.

WINNER: Seul Ku & John Kye, Uganda, “SPOUTS of Water” | FINALISTS: Tamer Taha, Egypt “Yomken.com” | Kamal Alhmoud, Jordan “Aster Company” |Charles Immanuel Akhimien, Nigeria “MOBicure” | Oluwaseun Sangoleye, Nigeria “Baby Grubz Nigeria” |”Juma El-Awaisi, Anwar Almojarkesh, Amr Wanly, UK “Braci”

• Projects include a financial education and/ or financial inclusion aspect. • Peer-to-peer formal and non-formal education activities/projects are highly preferred. • Other children and youth are involved in the entire process of creating and delivering the activity/project. • The project demonstrates tangible results and achievements. • The project has a follow-up component that encourages on-going engagement of the participants with the project.

WINNER: Ieva Laila Kalnina (17 years), Latvia “Euro run” | FINALISTS: Victoria Adeola Popoola (16 years), Ganyiyat Adeseun Jubril (15 years), Nigeria“BizKidz” | Victoria Akinfolarin (14 years), Victoria Adeola Popoola (16 years), Nigeria “BizGame” | Victoria Adeola Popoola (16 years), Nigeria “Waste to Wealth” | Jose Adolfo Quisocala Condori (11 years), Peru“Financial Inclusion with Education and Social and Environmental Responsibility” | Bagyema Benjamin (13 years), Uganda “Basic Financial Literacy for Children” 17

Summit Romania The 4th Child & Youth Finance International Summit and Strategy Launch was hosted by the National Bank of Romania, Ministry of National Education and Scientific Research and Financial Supervisory Authority of Romania, the Summit was attended by high-level representatives from these institutions. The meeting gathered government officials, senior practitioners, innovators and young people to address the gaps, challenges and opportunities for economic empowerment of young people across the globe. Discussions were accelerated, best practices shared and duplicated and concrete steps taken in the development of a global plan of action for youth economic citizenship. The 2016 Summit was centered on the launch of CYFI’s strategy for the years 18

2016-2020, which is the result of a year-long multi-sector, multi-stakeholder process, entailing consultations with partners and network members from 140 countries across the world. In addition, the International Visegrad Fund kindly supported participation of some delegates from the Eastern Partnership (EaP) countries in the CYFI Summit and Product Development Workshop, within the Flagship project CYFI is implementing on the experience exchange in youth financial education with partners from 9 countries. The Product development workshop on child-and youth friendly banking products, attended by 32 participants from 15 countries and led by CYFI staff, was kindly sponsored by the European Fund for South-East Europe (EFSE-DF) in the framework of the partnership for the implementation of three SchoolBank projects in Macedonia, Moldova and Romania.

The key achievements of the Summit included: ❶ Launch of CYFI 2016-2020 strategy ❷ Sharing innovations and best practices

based on the current youth economic citizenship landscape ❸ Presenting effective project models that can be taken to scale ❹ Offering hands on workshops and knowledge sharing sessions to promote institutional learning and the dissemination of best practice ❺ Launching two new CYFI product lines (Endorsement and the Network Response Program) to provide additional benefits for the CYFI network ❻ Inspiring active youth participation and outreach, both nationally and internationally, and incorporating youth views in the strategic planning of the international network

G20 During 2016 CYFI has continued his engagements as an affiliated partner of the Global Partnership for Financial Inclusion (GPFI) platform of the G20. In this role during the Chinese Presidency, CYFI has advocated for the inclusion of youth as one of the priority focus groups of the presidency. China recognized youth as one of the priority vulnerable groups for which actions should be carried out by members countries with the objective of increasing financial inclusion for youth. During the GPFI Plenary in Xian, CYFI was invited to be part of the panel on efficient measures in financial literacy and consumer protection and presented the latest evidence reports and trends in youth financial inclusion, including its own SchoolBank model. Finally, as part of the technical team working on the High-level principles of digital financial inclusion, CYFI contributed to the development of such principles, which take into account the needs of youth and minors, and which were endorsed by the G20 leaders during the Summit in Huangzo.

Strategic Objective ❷ Regional and National Platforms Building and maintaining national and regional collaborations and networks. We wish to ensure that countries have or are developing national strategies for the inclusion of children and youth in the financial sector.

Stakeholder Meetings and Regional Coordination Product Development Workshops Product Development workshops have the objective of supporting stakeholders in understanding why child and youth- friendly products and services are important, exploring the business case for products aimed at young people, sharing experiences and expanding and improving participants’ youth product portfolio. During 2016 Product Development Workshops were held in Azerbaijan, Bangladesh, Ivory Coast, Romania, Ukraine and Zambia.

AZERBAIJAN

BANGLADESH

CYFI, together with its project partner Central Bank of the Republic of Azerbaijan and Reliable Youth Future NGO, held a seminar in Baku on 29 – 31 August on active learning methods for financial education and access to basic financial services for young people in Azerbaijan. The workshop took place at the Training Center of Access Bank and saw the participation of 20 representatives of the banking sector, financial regulatory and educational authorities and civil society sector representatives. The workshop had the following objectives:

CYFI provided a Child-friendly Banking Product Development Workshop last 6-8 December in Bangladesh, co-hosted by the Bangladesh Bank at the Bangladesh Bank Training Academy in Mirpur, Dhaka. The workshop had attendance and delegates from 42 commercial banks (out of the 56 commercial banks in the country) working in the field of product development, product design, product marketing, and product strategy. In addition, the workshop was joined by 6 officials from the central bank to learn from the sessions and provide feedback from the viewpoint of the regulators.

• To train trainers engaged in the delivery of financial education programs on active learning methods for financial education; • To present the concept of an integrated approach to financial education to local stakeholders in Azerbaijan; • To introduce the concept of SchoolBank and its various implementation options; • Discuss the existing financial education programs for children and youth in Azerbaijan and the project partner presentation of updates on their program (Reliable Youth Future NGO).

IVORY COAST CYFI facilitated a product development workshop in Abidjan, Ivory Coast from the 23rd-25th of November. This workshop had been organized in partnership with the Program of Financial Education of the Ministry of National Education. One of the goal of the workshop was to emphasis the importance of Financial Products adapted to Children and Youth. The workshop aimed at underlining the

importance of having both Financial Education with Financial Inclusion. The workshop also highlighted the fact that the financial inclusion of the youth and the children represents a great opportunity for the financial service providers. The goal of the workshop presentation was also to explain that children and youth represent an opportunity for financial service. The reasons why they represent an opportunity are because children are easy to reach and use low cost self-serve channels for example. The third day of the workshop was dedicated to visiting the schools of the “Lycée Classique “in Abidjan. The main outcome of the workshop is the implementation of the SchoolBank program in Ivory Coast. SchoolBank aims to increase financial inclusion of children and young people through the school system through an innovative multi-stakeholder approach. ROMANIA Prior to the official start of the CYFI 2016 Global Summit, CYFI hosted a Product Development Workshop on Child and Youth Friendly products on 27 June. This workshop was attended by a select number of central and commercial bank representatives, as well as civil society actors from around the globe who are either already active or

interested in developing child and youth friendly banking products. The objectives of the workshop were to: • Understand why Child & Youth Friendly products are important; • Explore what Children & Youth need and want from their financial service providers and understand what a Child & Youth Friendly product is; • Explore the business case for Child & Youth Friendly products, from a financial and non-financial perspective; • Learn how to develop and market Child & Youth friendly products, from our experience, and from other institutions pioneering in Child & Youth Friendly products; • Explain how Child & Youth Finance International can help you develop, implement, and certify Child & Youth Friendly products; • Start expanding and improving your own youth product portfolio and learn from each other’s experience, through break-outs and collaborative development of Child & Youth Friendly concepts. UKRAINE

of Ukraine held a seminar in Kiev on 8 July on the role of public-private partnerships and the role of the private and civil society sectors in improving financial literacy and access to basic financial services for young people in Ukraine. The workshop took place at the Training Center of the National Bank of Ukraine, and saw the participation of more than 30 representatives of the banking sector, financial regulatory and educational authorities, ministries and civil society sector representatives. The workshop had the following objectives: • To present the concept of an integrated approach to financial education to local stakeholders in Ukraine; • To introduce the concept of SchoolBank and its various implementation options; • Discuss the existing financial education programs for children and youth in Ukraine; • Presentation of the best practices of foreign private sector involvement in financial education and access to programs for children and youth; • Discuss potential collaboration and further action plans for the development of financial inclusion and financial education programs for youth in Ukraine.

CYFI together with its project partners, the University of Banking and the National Bank

ZAMBIA In collaboration with the Bank of Zambia (BoZ) CYFI organized a two-day product development workshop 9-10 May in Lusaka, Zambia. The objective of the workshop was to train Zambia´s financial services providers (FSPs) on how to develop innovative, appropriate, and cost effective savings accounts for children and youth. It also aimed at training participants on how to link product portfolios for children and youth to financial education. Twenty-six participants attended the workshop, including representatives from 12 commercial banks, the Bank of Zambia, FINCA and the Banking and Insurance Associations of Zambia. attended this workshop. This has in turn led to more youth and children accounts being developed by Zambian banks. The workshop covered seven theoretical topic and provide practical examples from PostBank Kenya and PEDN Uganda. The topics threated were the following: Modules • Financial inclusion and education landscape of Zambia. • Why child and youth friendly products are important. • The business case for child and youth

friendly products. • What makes a ´child and youth friendly´ product. • How to develop child and youth friendly products. • Marketing child and youth friendly products. • Combing access with education: SchoolBank. A key component of the training was the break-outs and group exercise that gave participants hand-on experience on the product development process, and new perspective on the value proposition for youth financial services. The break-out/ group sessions were organized around the following themes: • Motivation for child and youth friendly product. • Value proposition towards child and youth financial services. • Product development and assessment. • Marketing-communication strategy.

SchoolBank Workshops Encompassing CYFI’s focus on an integrated approach to Financial Inclusion and Economic Citizenship, Schoolbank workshops provide institutions with an understanding of the principles and

operational modules for SchoolBank project. During 2016 a SchoolBank workshop was conducted in Zimbabwe. ZIMBABWE CYFI, in collaboration with the People’s Own Savings Bank (POSB) organized a SchoolBank Workshop in Harare, Zimbabwe. The two-day event was held 23-24 May and was attended 25 participants, including branch managers of POSB Zimbabwe and employees of the Reserve Bank of Zimbabwe and the Ministry of Education. It was aimed at providing the participating institutions, who will be engaged in a potential SchoolBank Zimbabwe pilot, an understanding of the principles and operational modules for a SchoolBank project. The workshop content was facilitated by the CYFI Secretariat and consisted of six modules and three practical sessions. The models were interspersed with practical examples from expert speakers from Junior Achievement Zimbabwe and Oratec Uganda. The following are the modules and practical sessions:

Modules • The business case for children and youth financial services. • SchoolBank: An integrated approach to financial capability. • Product development strategies for a SchoolBank project. • Stakeholder Management and Roles in SchoolBank implementation. • Funding, Monitoring and Evaluating a SchoolBank project. Practical sessions • Value proposition for children and youth financial services. • Localizing SchoolBank model. • Developing a road map for SchoolBank Zimbabwe.

Teacher Training Workshops To empower teachers on delivering effective financial education using active learning methods, particularly in relation to SchoolBank, Teacher Training workshops presents the concept of an integrated approach to financial education to local stakeholders. During 2016 Teacher Training Workshops were conducted in Belarus and Moldova.

BELARUS Together with the National Bank of the Republic of Belarus, CYFI conducted a teacher training workshop devoted to the integration of Economic Citizenship Education in the school curriculum on the 25th of May, 2016 in Minsk, Belarus. The workshop was attended by around 40 stakeholders from the National Bank, the Ministry of Education, the National Association of Banks, the National Association of Insurance Providers, and many more. During the workshop various models of curriculum integration and Economic Citizenship Education were presented and examples of national financial literacy standards and its content and formulation process were shared. This has led to CYFI lending further support to the government of Belarus in integrating ECE into the national curriculum. MOLDOVA CYFI, together with its project partner the Institute of Educational Sciences of Moldova, held a Training in the field of financial education on implementing effective financial education and financial inclusion programs between the 23 -26 August 2016. The workshop took place at the Institute of Educational Science of Moldova

and saw the participation of more than 25 teachers and representatives of the civil society organizations interested in implementing financial education and inclusion projects in the Republic of Moldova. The training was delivered by CYFI staff and international consultant Paul Moclair on behalf of partner organization Aflatoun International, as well as local experts from the Institute of Educational Sciences. They discussed the possibility of implementing financial education in the Moldovan national curricula as crosscurricular subject. The workshop had the following objectives: • To present the concept of an integrated approach to financial education to local stakeholders; • To introduce the concept of Schoolbank and its various implementation options; • Discuss the existing financial education programs for children and youth in Moldova and the three ways to integrated financial education in the Moldovan schools: as cross-curricular subject, as a stand-alone subject under the social and financial education course, as an extracurricular activity; • Discuss collaboration and further action plans for the implementation of financial inclusion and financial education programs for youth in Moldova. 23

Stakeholder Meetings VIETNAM CYFI collaborated with the Vietnam Microfinance Working Group (VMFWG) to hold a Stakeholders Meeting in Vietnam on the 12th of December in the field of financial education in Vietnam for children, including the State Bank of Vietnam and the Ministry of Education and Training of Vietnam. In particular, the meeting was able to: • Introduce and share various tools and expertise that the network would be able to bring and contribute to the development of the Vietnamese child financial education landscape • Provide a platform to start discussions on the importance of financial education and financial inclusion of young people in the country • Share best practices and case studies from around the world were presented • Enumerate potential action points that the country may take, which include the national roll-out of Global Money Week for 2017 • Delivered the general goals and a portion of the National Strategy for Financial Education Workshop to potentially assist the country in developing a child-centered financial education strategy. 24

Regional Coordination South Eastern Europe The project entitled “Transfer of Visegrad Group countries’ experience and building capacity of civil society organizations in Eastern Europe in the field of youth financial education” was aimed at building institutional capacity of civil society and public institutions in the countries of Visegrad Eastern Partnership Region (Belarus, Ukraine, Moldova, Georgia and Azerbaijan) in the area of financial literacy and economic citizenship education for youth, using extensive experience of V4 countries – Czech Republic, Hungary, Poland and Slovakia - and CYFI network expertise. The project was coordinated by CYFI between September 2015 and November 2016 and involved a kick-off meeting, a Master Training and a series of workshops and seminars for building technical expertise of participating organizations and local stakeholders in the topic, as well as the production of training materials, publications and guides on the topic. Over the course of just over one year, a variety of activities have been undertaken within the project, with many stakeholders from diverse sectors involved. collaborative approach to identifying the key needs of each participating country in the field of development of youth financial education

– each partner organization, in collaboration with CYFI, other local civil society and public institutions and advice from V4 and international experts, has determined the focus of the dissemination activity in accordance to local needs. For instance, Slovak experience in creating a national standard for financial literacy was presented and engaged deep interest in Belarus; while discussing the experience of Polish private and civil society sectors in teaching money-matters in schools served as one of the great examples and basis for the seminar in Ukraine. A variety of materials were translated from English into Russian during the project, as well as relevant publications and training materials have been produced. A full description and purpose of these materials can be found in the Project Report. Moreover, a Best Practices Guide on financial education programs in Visegrad countries was produced during the course of the project.

Diagnostic Tool During 2016 CYFI, with the help of Deloitte and McKinsey & Company, developed a standardized method of tracking a given

country’s progress toward systems change in areas of youth economic citizenship which allows CYFI to efficiently monitor its unilateral and collaborative actions in relation to a given country. The tool is comprised of ten stages, each of which contains no more than five country activities. Countries that provide full economic citizenship for children and youth will remain at Stage Ten, a steady state, and countries that have not undertaken activities for financial inclusion and education for children and youth will begin at Stage One. The diagnostic tool is driven by the Child and Youth Finance Movement’s goal of collaborative systems change. Based on the experiences of CYFI team members, network consultations, and advice from strategy consultants McKinsey & Company and Deloitte, we have been able to outline the ten steps a country should take that would lead to the desired systems change. These steps are based on the assumption that the desired system in each country has the following characteristics: • The system encourages the provision of ECE and financial inclusion for children as a priority. • The system’s processes and infrastructures are designed in a way that

enables all players within the system to provide ECE and financial inclusion in the most efficient and harmonised manner. • All players within the system, especially those who are not actively involved, are taking steps toward providing ECE and financial inclusion. • Collaborative relationships between players of the system are formed so that efforts are harmonised. • The ability for the system to grow organically, self-govern, and self-regulate is inherent in the system (e.g. different banks from across the world can share best practices and be inspired by one another, thus making innovation and learning part of the system). With this tool, CYFI hopes to support governments engaged in the implementation of Financial Inclusion and Economic Citizenship Education strategies that target children and youth (not necessarily exclusively). It will allow countries to identify further opportunities for policies and programs, which will facilitate support at the highest governmental level for projects aimed at increasing full economic citizenship for children and youth. The tool will also track their progress against short term objectives and long term expected outcomes. This function enables stakeholders from both the public and

private sector to mobilize resources by showing continuous progress. The internal objectives of the Diagnostic Tool include assessing CYFI’s efforts to measure its own involvement in aiding a given country’s development in the area of youth economic citizenship. CYFI-assisted actions include promotional efforts, workshops with stakeholders, implementation of Economic Citizenship Education into curricula, and a host of other collaborative activities. The internal objectives included in every stage of the tool will allow CYFI to monitor and account for its activities and impact around the world and communicate its results to stakeholders and donors. The tool facilitates donor reporting and provides a clear and standardized structure for monitoring and evaluating CYFI’s roles at each stage of a country’s advancement. During the second half of the year, staff of CYFI worked on inputting all information on countries with which we work. It is the intent that this will thus be ready for analysis in 2017 (looking back) and for future analysis on a yearly basis to check progress.

Strategic Objective ❸ Education and Inclusion The main objective of education and inclusion is to help children and youth under the age of 18 gain access to high quality Economic Citizenship Education and safe and reliable banking services.

SchoolBank SchoolBank aims to increase financial inclusion of children and young people through the school system. The program uses innovative distribution channels (e.g. schools) and technology (e.g. mobile banking and online banking) with the goal of financially empowering children and youth in a cost efficient and sustainable way. Through an innovative multi-stakeholder approach, SchoolBank aims to create systems change by providing children and youth with a Child & Youth Friendly bank account that they can use to save money, while at the same time imparting the appropriate education to teach them why and how to save and what their economic rights are. We believe by economically empowering children and youth we will be able to break the cycle of poverty. The SchoolBank model aims to deliver three basic services to children and youth (see Figure 8): • A one-time banking initiation: providing an account to open, which may include collaterals such as passbooks, ATM cards, check books and/or magnetic cards; • Continuous educational inputs: providing economic citizenship education and generating financial awareness; • On-going transaction support: providing withdrawal and deposit facility, enabling cash transfers between accounts, balance inquiry, etc. Each of these services are offered through schools, allowing the children and youth to save in a safe and trusted place. By providing these services, the goal is to enable children and youth to save money, receive allowances, and make payments. Additionally, if local circumstances allow, and if appropriate for the target group, the model can be supported by technologyenabled solutions, such as an online bank account, a mobile banking application or a mobile wallet. During 2016 CYFI was focused on expanding the SchoolBank pilot program, looking to start projects in multiple locations around 26

the world. At the end of the year six SchoolBank pilots were active in India, Egypt and Georgia, Macedonia, Moldova and Romania with multiple others scheduled to launch in the 1st quarter of 2017.

INDIA Launched in April 2015, the SchoolBank in Kerala was a project initiated after the country lowered the regulation to open and operate a bank account independently to 10 years old. CYFI partnered with Kudumbashree, Rajagiri Outreach, and NABARD to launch a small-scale pilot of 561 children in the first phase of the project. The project was further scaled with the State Government of Kerala and have reached more than 11,000 children. Due to the success of this scale-up, Kerala Gramin Bank partnered with CYFI to deliver the FI@ School program, a replication of the SchoolBank model expected to reach 50,000 children within 2017. Partners on the project include: State Government of Kerala, Kudumbashree (State Poverty Reduction Program), Rajagiri Outreach, NABARD (National Bank for Agriculture and Rural Development), Kerala Gramin Bank.

standard SchoolBank educational module, lesson plans and evaluation methodology, and disseminated to all relevant partners, including educational authorities and banking sector. The first bank to join the project was Bank of Georgia in September 2016. More than 100,000 sCool cards were distributed to children in Tbilisi, and 175 youngsters have completed the educational program. NBG is currently working with the Ministry of Education and the National Youth Palace on integration of SchoolBank module as an extra-curriculum class in Georgian schools. Partners include: the National Bank of Georgia (coordinator), the Ministry of Education and Science of Georgia, the National Youth and Children Palace and the Bank of Georgia.

EGYPT The Egyptian Banking Institute (EBI) in partnership with Banque Misr and Modern Education Schools conducted the first savings collection process for the students participating in the School Bank project in January 2017. The pilot School Bank project in Egypt, is the first of its kind in the MENA region and was launched in December 2016.

GEORGIA The National Bank of Georgia (NBG) and CYFI collaborated on the development of

SchoolBank model delivers three basic services tochildren and youth • Banking partners to provide childfriendly savings accounts • Provision of account collaterals such as passbooks, ATM cards, cheque books, magnetic cards

Continuous educational inputs

One-time banking initiaton School Bank

Ongoing transaction support

• NGO partners and Ministry of Education to provide economic citizenship education through innovative delivery methods • Generating financial awareness in children and their communities

• Banking partners and schools to provide withdrawal and deposit facilities, transfer of cash between accounts, balance inquiry and interest accrual • Technology or telecom companies to provide enabling technology solutions to improve transaction support Figure 8. SchoolBank model

MACEDONIA CYFI has been partnering with the National Bank of the Republic of Macedonia since 2012, when the NBRM has started its programs on financial education for children and youth. CYFI has started the negotiations regarding the implementation of a schoolbank project in Macedonia in 2015. Since 2011, CYFI has been closely working with the National Bank of the Republic of Macedonia on financial education projects specifically tailored for children and youth. The implementation of a schoolbank project is therefore in the scope of the NBRM objective of promoting financial education and knowledge for young people and would also contribute to the increase in the level of financial inclusion in the long term. Partners include: the National Bank of the Republic of Macedonia, ProCredit Bank, Woodrow Wilson School and EFSE.

MOLDOVA In Moldova, financial and social education have been implemented in the secondary school curriculum as optional subjects (for the 14 year old students). Students can, in fact, chose as one of their optional subjects if they would like to follow social and financial education. The schoolbank project will built on this infrastructure. That is: schools in which students have already opted for this subject and in which the teachers have been trained to deliver such subject, will be included in the pilot phase of the project. Partners include: the Institute of Educational Sciences, Mobias Banca and EFSE.

ROMANIA In 2016, the Ministry of Education of Romania has started the process of drafting the updated curriculum for secondary education. Social and financial education will become mandatory subject for the VIII graders. Ahead of this process, CYFI and its national partners are piloting a new innovative project which comprises not only financial education but also access to appropriate banking products which will allow children to learn and save as well as contributing to their communities. Ideally the project will be scaled up once the national curriculum is approved. Partners include: the National Bank of Romania, Transylvania College, Transylvania Bank, Blaga High School and EFSE.

Economic Citizenship Education Curriculum Assessment and Endorsement During 2016 CYFI revised its strategy in offering endorsement to Child and Youth Friendly banking products and curriculum materials in line with the Economic Citizenship Education Learning Framework. CYFI redesigned its promotional materials and layout for the assessment reports, along with revising the assessment controls that determined whether products would receive official endorsement from the CYFI Secretariat. CYFI also established a 10 member international review committed that would provide a third party check on the product or curriculum assessment reports being put forward for endorsement. In total, CYFI performed assessments of 35 different products and curriculum materials from around the world, including those from government authorities, civil society and the private sector. Four curriculum endorsements were awarded (Aflatoun, Aflatot, Aflateen and The Canadian Foundation for Economic Education “Money and Youth”) and one banking endorsement (Bank of Georgia “Scool Card”).

CNRP As with the Endorsements, CYFI used 2016 to revised its strategy regarding the CNRP, CYFI’s database of consultants and technical advisors with experience on topics related to the economic citizenship of children and youth. This included a revision to the CNRP operating structure, revenue model and promotional materials. CNRP legal documents were also established, including templates for Memorandum of Understanding, Service Agreements, Sub-Contracting of Services and Terms and Conditions for CNRP Associates. 2016 saw 35 new CNRP Associates join the database, with another 175 added to the distribution list.

Thought Leadership In 2016, CYFI continued to advance its role as a thought leader in the field of financial inclusion and education for children and youth. This was led by the release of the CYFI Landscape Series at the CYFI Summit in Romania in June. This series consisted of three publications. The CYFI Financial Inclusion Landscape looks back on the developments of recent years in the areas of

financial inclusion policies, innovative financial products for children and youth and practical models of implementation. It lists key players and initiatives and provides recommendations for policymakers and practitioners. It also outlines the key definitions and perceptions of financial inclusion and the frameworks and principles supporting financial inclusion for children and youth. The CYFI Economic Citizenship Education Landscape looks back on the developments of recent years in the areas of financial, social and livelihoods education. It focuses on curriculum frameworks and innovative programs advancing economic citizenship education through government authorities, the private sector and civil society. Economic Citizenship Education and teacher training suggestions are listed as well and recommendations for policy makers and practitioners are given. The CYFI Research Evidence Landscape focuses on research evidence supporting CYFI’s model on economic citizenship. It provides a comprehensive and objective overview of the literature on economic citizenship for children and youth. It includes the conceptual development of the CYFI Theory of Change and lists additions to the literature since the conception of the Child and Youth Finance Movement in 2011. It also looks at gaps in the current research, and opportunities and challenges for future research. Other leading publications put out by CYFI in 2016 included A Call for Savings: The Case for Microfinance Providers to Offer Mobile Banking Deposit Services for Youth which profiled a number of leading examples from microfinance institutions that are leading the effort to expand digital services for young clients. CYFI also used the Summit in Romania to release a document on Economic Citizenship and the Sustainable Development Goals, illustrating how an integrated strategy on youth financial inclusion, education and entrepreneurship can help policy makers and practitioners contribute to the achievement of a number of the sustainable development goals and related sub-targets. CYFI also prepared a guide for the monitoring and evaluation of SchoolBanking projects that can be used by implementing partners in the selected CYFI pilot countries. In 2016, CYFI also continued its contribution to a number of relevant thought leadership working groups including the Think Forward Initiative on Financial Literacy, the European Entrepreneurship Education Hub, the CreditSuisse Advisory Group on Financial Empowerment for Adolescent Girls and the Global Platform for Financial Inclusion. 27

Strategic Objective ❹ Innovations Research and develop innovative concepts and products to support our mission and goals. Innovations is essentially a laboratory for new innovative concepts that can potentially be released as programs throughout the Child and Youth Finance Movement. Typically projects “incubate” for a period of 2-3 years, gaining the conceptual clarity needed and potential platforms in which to launch the ideas before they are released.

Ye! The Ye! Community is an online community for young entrepreneurs. Ye! provides young entrepreneurs around the world with a peer community, resources on how to start a business in their country, coaching and funding opportunities, with the goals of supporting youth entrepreneurship, promoting ethical entrepreneurial culture and stimulating job creation. Ye! had quite the busy year! • Coaching: Pairing young entrepreneurs with experienced professionals for one-on-one support. • Country Guides: Offering useful, country specific, step by step guides for young entrepreneurs, including information on legal and accounting matters, as well as information on existing startup hubs and funding opportunities. Ye! currently has country guides for about 40 countries. • Online Community: Enabling entrepreneurs to showcase their startups and innovative ideas, find other entrepreneurs for business opportunities

or simply to learn from each other. • Tools: Creating a database of practical software and tools suitable for startup owners. • Funding: Linking young entrepreneurs to funding opportunities through pitching events.

Pitching Events 3 pitching events were organized in 2016. In total, more than 30 entrepreneurs pitched their startups at these Ye! events, which provided opportunities for them to seek funding and receive feedback. Followings are the events that were organized in 2016: • During July we co-organized a Pitch event with UNCTAD at the UNCTAD XIV meeting held in Nairobi, Kenya, where 6 young entrepreneurs had the chance to present their projects before an audience of international investors and policy makers • Ye! brought its first initiative to India: The Ye! Startup Pitching Event & Award Ceremony, which took place in October in Mumbai. The event celebrated the work and achievements of 20 inspiring young Indian entrepreneurs. • Following a boost camp in September in Pristina, Kosovo held in collaboration with ICK, KIESA and the Development Facility of the European Fund for Southeast Europe (EFSE DF) a pitch event closed out the training week.

Boost Camp and Workshops Ye! Boost Camps were held in 6 countries across Europe, Asia and Africa with various foci. Though the thread throughout remained the same: helping young

entrepreneurs get intensive training, allowing them to grow their own enterprises. • After a video contest was carried out during the first weeks of August, Ye! Community ran a workshop series in the Philippines, in collaboration with the Philippines Startup Summit. Several topics were covered, such as business modelling and opportunity of technology entrepreneurship in emerging markets. • During September we held a BoostCamp in Pristina, Kosovo in collaboration with ICK, KIESA and the Development Facility of the European Fund for Southeast Europe (EFSE DF). • During October we collaborated with Building Bridges for the ‘Road to Nairobi 2016 Multi-stakeholders Forum’ in Kenya. The event featured a training for 100 young entrepreneurs on investor-readiness and was followed by a pitch event. • Ukraine Ye! Boost Training & Hackathon, sponsored by the Development Facility of the European Fund for Southeast Europe (EFSE DF), took place in Kiev over the course of three weeks in October. More than 60 young entrepreneurs attended lectures and training on business-creation as well as a weekend Hackathon. • In collaboration with the Development Facility of the European Fund for Southeast Europe (EFSE DF) and ImpactHub Istanbul, we held a Ye! BoostCamp in Turkey during December. • During the Global Inclusion Awards held on the 28th-29th of November by CYFI, Ye! Community brought together national Ye! award winners and finalists at the Ye! Winners’ Workshop, with the training facilitated by McKinsey & Co.

Erasmus for Young Entrepreneurs Program CYFI closed-out its participation in the Erasmus for Young Entrepreneurs Program which facilitates exchanges among entrepreneurs in the European Union. New entrepreneurs (entrepreneurs with less than 2 years’ experience) can apply for a three to six months’ exchange at an experienced entrepreneur’s (the host entrepreneurs) company. Throughout the program taking place in 2015 and 2016, we have supported 16 Host Entrepreneurs, 11 New Entrepreneurs and facilitated 11 exchanges among host entrepreneurs and new entrepreneurs.

Website Development We continued the further development of the Ye! website with our partner. This past year we have made 3 main changes to improve the functionality of the website at the behest of the young entrepreneurs with whom we are engaged. Namely, • Coaching: Coaches can now apply and publish their profile online, indicating their expertise and coaching offering (though all applications must still be approved by CYFI). Entrepreneurs can now search for coaches based on numerous criteria including geography, sector and expertise. They can also send requests directly to coaches through the platform.

• Online Community: Every entrepreneur that would like to gain full access to the Ye! Community is now required (and able) to provide mandatory information about their business. This helps to increase the credibility and relevance of the Community by selecting the candidates that are motivated and relevant. • Some enhanced features now allow entrepreneurs to submit text based applications as well as video applications.

Operations and Resource Mobilization Operations and Resource Mobilization are critical sections of Child and Youth Finance International. Operational support for the Movement and the Secretariat will facilitate the conducting of the Secretariat’s activities, ensure its capacity and sustainability. The Operations department is also involved in the governance and internal processes of the organization. It also focuses on the logistical and operational aspects of the activities to support the Movements strategic goals, particularly regarding the smooth running of workshops, meetings and regional/international summits.

Sustainability As the activities of the Secretariat grow and the Movement involves an increasing number of stakeholders, the Secretariat must seek extra support internally through increased recruitment, taking on an additional number of interns and seeking out volunteer assistance. This process is managed by the operations department. The department oversees not only the HR requirements, but also the operational need relating to finances, IT, administration and other tasks.

Communication with Third Parties and Donors We produce this annual report outlining the activities of the previous year and including the audited financial statements. In addition, we prepare an annual State of the Movement document entitled “Children, Youth and Finance”, which outlines the progress of the Movement. Additional reports to donors are made as per specific requirements.

Financial Reserves and Investments In accordance with the Wijffels Code, CYFI’s policy aims to build, at a minimum, a 6 month operational reserve. CYFI’s funds are deposited in a current account and savings accounts and the organization does not invest in stocks or any other type of potentially risky financial endeavor.

Budget The operational budget for 2016 can be found in the attached financial statements.

GOVERNANCE AND OVERSIGHT Supervisory Board Comprised of representatives from banking networks, NGOs, development foundations, multilaterals, academic institutions and corporations, the Supervisory Board is responsible primarily for strategy and selection and oversight of the Management Board members who are responsible for the daily operations of Child and Youth Finance International. Members of the Supervisory Board are appointed to a two year term, do not receive a salary or any other compensation for their work, and typically meet twice a year in-person and twice telephonically. The following list includes all members of the Supervisory Board as of 31 December, 2016. Members from the NGO sector • Bob Friedman - General counsel, founder and chair of the board of CFED • Jaap Doek - A global authority in the field of Child Rights and former chairperson of the UN Committee on the Rights of the Child

• Jeroo Billimoria (deputy chair) Pioneering Social Entrepreneur and Founder of Child and Youth Finance International, Aflatoun and ChildHelpline Members from the Financial Services Sector • Chris de Noose - Managing Director of the World Savings Bank Institute (WSBI) • Wissam Fattouh - Secretary General of the Union of Arab Banks Members from Academia • Lew Mandell - Professor Emeritus of Finance and Managerial Economics at the University of Buffalo, New York • Michael Sherraden - Founder of the Center for Social Development at the University of Washington at Saint Louis Members from Corporations • Koen Vermeltfoort - Partner at McKinsey & Company in The Netherlands • Michiel Wesseling (chair) - Partner at Houthoff Buruma

• Willem Blom - Partner in Global Business Tax at Deloitte Ex-officio Members from Multinationals • Andre Laboul - Head of the Financial Affairs Division at the OECD • Beth Porter - Policy Advisor at UNCDF Ex-officio Members from Government • Denny Kalyalya- Governor of the Central Bank of Zambia • Dimitar Bogov - Governor of the Central Bank of Macedonia • Ernesto Velazquez - Board of Directors of the Central Bank of Paraguay • Mona El Baradei - Executive Director of the Egyptian Banking Institute • Petra Hielkema - Division Director of the Central Bank of the Netherlands • Shitangshu Kumar Sur Chowdhury Deputy Governor of the Central Bank of Bangladesh

Figure 9. CYFI’s two-tier governance structure composed of a Supervisory Board and an operational management, ensures strong governance and effective, transparent oversight of the organization.

Partners Assembly

Governance Committee

Supervisory Board

Audit Committee

Executive Management Board Planning Team Staff Figure 3: Different roles CYFI for different segments of countries 32

Executive Committee

Audit Committee

Nominations Committee

Assists with the day-to-day tasks of the CYFI Secretariat, including:

We developed a strong set of financial controls and standards for bookkeeping, expenses, procurement and travel, which are audited annually internally and externally (with the support of our pro-bono partner, EY). The Audit Committee oversees these activities, specifically:

Broadly, the Nominations Committee is looking at board succession planning as well as assisting with the development of key organizational documents. Specifically, the Nominations Committee has been tasked with the following:

• Support and evaluate the Managing Director; • Review and approve major organizational decisions, commitments and plans including expenditures and leases; • Review the budget and recommend it to the Supervisory Board in consultation with the Managing Director; • Evaluate progress toward program and financial goals; • Ensure the continuity of the organization through development and recruitment of staff members • In conjunction with the Managing Director, provide leadership on organizational transition, structure and planning The committee is composed of the following members: • Jeroo BIllimoria • Koen Vermeltfoort • Michiel Wesseling • Willem Blom

• Overseeing CYFI’s financial statements and recommending approval of the annual report and accounts; • Overseeing CYFI’s compliance with regulatory requirements and the independent auditor’s qualifications and independence; • Overseeing the performance of CYFI’s internal audit function and independent auditors and recommending external auditors to the Supervisory Board • Overseeing the risk assessment and management for CYFI including the process for monitoring statutory compliance The Committee is composed of the following: • Lew Mandell • Willem Blom

• Make recommendations regarding the Supervisory Board’s composition, operations and performance; • Develop profiles and recommendations for new Supervisory Board members; • Develop and execute an effectiveness assessment process for members of the Supervisory Board for use by the Chair and the overall functioning of the Supervisory Board and its committees with the exception of the Nominations Committee. The Nominations Committee shall be assessed by the Executive Committee; • Serve in an advisory capacity to the Supervisory Board on matters of organization, management succession plans, major changes in the organizational structure of the Foundation, and the conduct of board activities. The committee is composed of the following: • Beth Porter • Bob Friedman 33

CYFI Secretariat Team Management Team • Wessel van Kampen, Managing Director • Bianca Isaincu, Director of Network Advisory Services • Bram van Eijk , Director of Operations and Communications • Jared Penner, Director of Thought Leadership and Consultancy • Lubna Shaban, Director of Ye!

Staff Being an international movement coordinating and driving activities around the world, CYFI’s team is a mix of staff and interns, who reflect the organization’s diversity and international character, with members hailing from 5 continents. The team encompasses expertise in education, finance, research, communications as well as other areas, and operates day to day activities, including maintaining our network, reaching out to new stakeholders and developing financial inclusion and education strategies and materials. During 2016 CYFI employed on average 17 staff. The following list includes all employees in the organization as of 31 December, 2016. • Doran Oirbons, MENA and Americas Regional Advisor • Frances Hague, Communications Manager • Jie Xue, Ye! Senior Manager • Karina Avakyan, Central Asia and Eastern Europe Regional Advisor • Kim DeRose, Network Advisory Services Advisor • Liina Liblik , Communications Senior Manager • Mano Delea, Office Manager • Rene Cuartero, Asia Regional Advisor • Stella Pastuszka, Operations Manager • Violeta Licheva, Bookkeeper

Interns During 2016 Child and Youth Finance International benefitted greatly from the assistance and hard work of interns. Thanks to these mostly students, CYFI was able to accomplish much more than the staff would have normally been able to do. The students were required to by their universities to do an internship for the completion of their studies and clear goals and plans were created with them to help aid in their personal and professional growth. Internships ranged in time from 1 month to 6 months. The Secretariat would like to wish a warm thank you to everyone that has interned at CYFI during 2016. 34

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Shujaat Reyazuddin, India Merijn Noppers, Netherlands Sarah Janicek, Czech Republic Alexandra Nabilskaya, Russia Elizabeth Early, United States Raluca Ezaru, Romania Viviane Bertel, France Rachel Mehlsak , United States Molly Gilmour, Ireland Stanley Nosten, Thailand Thomas Schnelzer, Germany Moises Coelho, Brazil Mathilde Cayuela, France Mattia Perlini, Italy Roos ter Haar, Netherlands Letizia Binda, Italy Alexis Sadouni, France Fiona Valente, France Maura Feeney, United States Lotte Cloostermans, Netherlands Louis Holland DeFelice, United States Baily Forcier, United States Charles Mensah, Ghana Jos Vlaar, Netherlands Laure-Anne Galludec, France Dilara Yilmaz, Turkey Rahul Kolluri, United States Nika Norvila, Lithuania Liz Chernov, United States Stephanie Sieber / PA, Austria Federico Centorbi, Italy Yiming Deng, China Perikles Panagouleas, Greece Janita Sanderse, Netherlands Annabel Lee Fenton, South Africa Anne Reynaud, France Michael Tsui, Netherlands Pieter Jan Vandervliet , Belgium Garrett Jones, Canada Stefano Oricchio, Italy Aytan Ismayilova, Azerbaijan Skanda Vasanthan, United Kingdom Iryna Kurilets, Ukraine

LOOKING AHEAD TO 2017 The coming year within CYFI promises to be one filled with new challenges and accomplishments. As the new strategy for the organization just came into effect in 2016, the main focus will be on deepening our impact in relation to the targets set forth in the 2020 Strategy and ensuring that our work at the Systems levels is being documented. We believe that Systems Change as a concept is one that works and one that needs to be documented well for the good of the sector. In 2017 we will thus ensure that this is current and in a form that is useable for those interested in learning about and replicating the approach.

Furthermore, we will be spending a portion of the first half of the year gearing up for the Global Inclusion Awards, being held in collaboration with the German Presidency of the G20 in May. Network partners will have the have thus the added opportunity to participate in sessions of the Global Platform for Financial Inclusion (GPFI) leading up to the Awards Ceremony.

knowledge and learnings for the network and the sector as a whole. By doing so this we can also see if perhaps different aspects of the program work better in a given circumstance. This will also help inform our strategy in relation to SchoolBank for the coming years.

And lastly, we will be ensuring that the SchoolBank projects running are keeping learning and evaluation at the forefront. We consider all of these different iterations of the SchoolBank model to be a wealth of 35

ANNEX A GLOSSARY OF TERMS 37

GLOSSARY Term

Definition

Banking Product

Any product offered by a Financial Service Provider

Boost Camp

Within the context of Ye!, the boost camp is an intensive training programme for young entrepreneurs whereby they will receive training in aspects of growing and maintaining their endeavor.

Child

CYFI adopts the UN definition of a Child: “An individual under the age of 18, or under the age of majority as prescribed by national law” (Office of the High Commissioner for Human Rights (1990), ‘The Convention on the Rights of the Child’)

Child & Youth Finance International (CYFI)

The legal organization responsible for coordinating the Child and Youth Finance Network and the Partners within the CYFI network

CYFI Secretariat (CYFI)

The organizing entity of Child and Youth Finance International (CYFI) which reports to the CYFI Supervisory Board and coordinates activities within the CYFI Network. The acronym CYFI can signify both the legal organization CYFI as well as the CYFI Secretariat

CYFI Supervisory Board

The supervisory Board of CYFI, responsible for CYFI’s strategic direction and supervisory management

Child and Youth Finance Activities

All actions, projects and programs relating to the promotion and implementation of undertakings to further financial access and education for children and youth as described in the CYFI strategy

CYFI Annual Summit & Award Ceremony

The annual meeting of CYFI Partners and stakeholders. The purpose of this summit is to strengthen relations, disseminate best practices and share innovations, coordinate activities between partners and stakeholders within the CYFI Network

Child and Youth Finance Movement (the Movement)

An international, inclusive, multi-stakeholder movement comprising CYFI Partners and stakeholders supporting: the creation and strengthening of systems, structures and policies which provide children with choices; informs them of their rights; instills values in them; empowers them to make sound financial decisions, build their assets and invest in their own futures

Child and Youth Finance The theoretical base upon which the Child and Youth Finance Movement stands and which Movement Theory of Change outlines how the various interventions of the Child and Youth Finance Network lead to the Movement’s desired outcomes CYFI Network

The multi-stakeholder group of CYFI Partners, comprised by practitioners, policy makers, and researchers and their respective organizations and networks who contribute to, and further the efforts of, the Child and Youth Finance Movement

Child and Youth Friendly Banking

A system of financial services that promotes the creation and provision of financial products and services which are designed to promote safe financial access and financial capability for all children and youth under the age of majority

Child and Youth Friendly Banking Product Certificate

The certificate awarded to financial institutions for banking products offered to children and youth which meet the required Child and Youth Friendly Banking Product standards

Child and Youth Friendly Banking Product

Savings and current accounts which meet a set of minimum standards as defined by the CYFI Regulation and Inclusion Working Group. These standards ensure that banking products remain inclusive and appropriate, and are designed in the best interest of the child

Economic Citizenship

Economic and civic engagement to promote: reduction in poverty, sustainable livelihoods, sustainable economic and financial well-being and rights for self and others

Economic Citizenship Education

An education curriculum combining the three modules of financial education, social education, and livelihoods education for children and youth as defined in the CYFI Education Learning Framework

Term

Definition

CYFI Education Learning Framework (ELF)

The structured set of desired learning outcomes and competences in economic citizenship education as defined by the CYFI Education working Group

Diagnostic Tool

A standardized method of tracking a given country’s progress toward systems change in areas of youth economic citizenship which allows CYFI to efficiently monitor its unilateral and collaborative actions in relation to a given country.

Empowerment

Increasing an individual’s confidence and ability to take charge of their lives, claim their rights and build empathy with others

Entrepreneurship

The ability to use one’s technical and business skills to take advantage of market opportunities to deliver products and services that generate a sufficient financial return

Financial Access

A means of safely accumulating, controlling and acquiring assets

Financial Education

CYFI adopts the OECD definition of Financial Education: “The process by which individuals improve their understanding of financial products and concepts; and through information, instruction and/or objective advice develop the skills and confidence to become more aware of Financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being and protection.” OECD (2005). Recommendation on Principles and Good Practices for Financial Education and Awareness

Financial Capability

Combining the knowledge, skills, attitudes, and behaviors that increase financial literacy with access to financial products and services providing individuals with the opportunity to act in their best interest

Financial Inclusion

Access to financial products and services that are affordable, usable, secure and reliable

Financial Institution

A deposit-holding institution with a license from the relevant national financial regulatory authority and providing financial services for its clients or members

Financial Literacy

CYFI adopts the OECD definition of Financial Literacy: “Financial concepts, and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve financial wellbeing of individuals and the society; and to enable participation in economic life,” OECD (2012). PISA 2012 Financial Literacy Framework

Financial Services

Services offered by FSPs complementary to, and comprising, banking Products

Financial Service Provider (FSP)

Organization providing financial products, including deposits. This includes Financial Institutions as well as non-regulated organizations offering financial services

Fintech

Fintech (financial technology) describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. The term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies like bitcoin. Investopedia ‘What is Fintech”

Global Money Week (GMW)

A week dedicated to the promotion and awareness of financial inclusion and economic citizenship education for children and youth around the globe, coordinated by CYFI 39

Term

Definition

National/Regional/Global Platforms

Activities and structures to catalyze national, regional, and global collaboration advancing the objectives of the Child and Youth Finance Movement

Livelihoods Education

Programs aimed at developing employability skills and entrepreneurial behavior

Livelihood Skills

CYFI adopts the UNICEF definition of Livelihood Skills: “Capabilities, resources and opportunities to pursue individual and household economic goals. Livelihood skills relate to income generation and may include technical / vocational skills, job seeking skills, business management skills, entrepreneurial skills and money management skills.” UNICEF (2011) Life skills Definition of Terms

Minimum standards for Child and Youth Friendly Banking Products

The standards a banking product must meet to be awarded a Child and Youth Friendly Banking Product Certificate. The standards were developed by the CYFI Regulation and Inclusion Working Group

Pitching Event

Within the context of Ye!, a pitching event is a session where young entrepreneurs present their business to investors, receive feedback and explore funding opportunities.

Product Development Workshop

Product Development workshops support stakeholders in understanding why child and youth- friendly products and services are important, exploring the business case for products aimed at young people, sharing experiences and expanding and improving participants’ youth product portfolio.

SchoolBank

SchoolBank aims to increase the economic empowerment of children and youth by providing them with access through appropriate banking products and economic citizenship education. Local banks offering Child &Youth Friendly banking products will be engaged with the local schools, under the supervision of the Ministry of Education and Central bank regulators, to provide such products through the school system. Not only will the children will receive financial education, but will also have the chance to put in practice what they learn, thanks to the access to savings accounts or other similar products

Social Education

Programs aimed at increasing knowledge of human rights, encouraging self-reflection and self-awareness and instilling respect for oneself and others

Social Entrepreneurship

The ability to recognize social, human rights, political or environmental needs and to use one’s technical and business skills to create effective solutions, that address these issues in a sustainable manner

Socio-Financial Capability

The ability to make informed financial decisions that benefit the individual and community

Teacher Training Workshops

To empower teachers on delivering effective financial education using active learning methods, particularly in relation to SchoolBank, Teacher Training workshops presents the concept of an integrated approach to financial education to local stakeholders

CYFI Working Groups

Groups of experts from across linked sectors contributing to the strategic focus of the global Child and Youth Finance Movement

Ye! Community

The Ye! Community is an online community for young entrepreneurs and provides young entrepreneurs around the world with a peer community, resources on how to start a business in their country, coaching and funding opportunities, with the goals of supporting youth entrepreneurship, promoting ethical entrepreneurial culture and stimulating job creation

Young People

CYFI adopts the UN definition of Young People: “Anyone between the ages of 10 and 24” United Nations. Definition of Youth

Youth

CYFI adopts the UN definition of Youth:“An individual between the ages of 15 and 24” United Nations. Definition of Youth

ANNEX B FINANCIAL STATEMENT AND INDEPENDENT AUDITORS REPORT 43

yIPr

Building a better working world

Ernst & Young Accountants LLP Cross Towers, Antonio Vivaldistraat 150 1083 HP Amsterdam, Netherlands Postbus 7883 1008 AB Amsterdam, Netherlands

Tel: +31 88407 1000 Fax: +31 88407 1005 ey.com

Independent auditor’s report To: the management of Stichting Child and Youth Finance International

Report on the audit of the fïnancial statements 2016 Our opinion We have audited the financial statements 2016 of Stichting Child and Youth Finance International, based in Amsterdam. In our opinion the accompanying tinancial statements give a true and fair view of the financial position of Stichting Child and Youth Finance International as at 31 December 2016 in accordance with the Guideline for external reporting RJ 650 Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board. The financial statements comprise: The balance sheet as at 31 December 2016 h The statement of revenue and expenditure for 2016 The notes comprising a summary of the accounting policies and other explanatory information

Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the “Our responsibilities for the audit of the financial statements” section of our report. We are independent of Stichting Child and Youth Finance International in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics). We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on other information ïncluded in the annual report In addition to the financial statements and our auditor’s report therëon, the annual report contains other information that consists of: Annual report 2016 Other information pursuant to the Guideline for external reporting R] 650 “Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board Based on the following procedures performed, we conclude that the other information: Is consistent with the financial statements and does not contain material misstatements Contains the information as required by the Guideline for external reporting RJ 650 “Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board

Ernst & Young Accountants LLP na limited liability parteersnip incorpurated onder the laws of Enpland and Wales and ragisterco witn companien Heuse under numbet 0C335594. The term partner in relotion to Ernst & Younq Accountants LLP is used to refer to (the representative of) a member of Ernst & Young Accountants LLP. Ernst & Yoursg Accountants LLP hot its registereo office at 6 More London Place, London, 5E1 2DA. United Kingdom, its principal place of business at Boompjes 258, 3011 XZ Rotterdam, the Netherlands and is registered with the Chamoer of Commerce Rotterdam number 24432944. Our services ure subject to general terms and conditions, whicn contain a limitation of liability clause.

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We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of the Guideline for external reporting RJ 650 “Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board and the Dutch Standard 720. The scope of the procedures performed is less than the scope of those performed in our audit of the financial statements. Management is responsible for the preparation of the other information, inciuding the annual report in accordance with the Guideline for external reporting RJ 650 “Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board and other information pursuant to the Guideline for external reporting RJ 650 “Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board.

Description of responsibilities for the financial statements Responsibilities of management for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Guideline for external reporting RJ 650 “Fondsenwervende instellingen” (Fund Raising Organizations) of the Dutch Accounting Standards Board. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the financial statements, management is responsible for assessing the company’s ability to continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the financial statements using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. Management should disclose events and circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the financial statements. Our responsibilities for the audit of the financial statements

Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have detected all material errors and fraud. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality atfects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. We have exercised professional judgment and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included e.g.,: ldentifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaininq audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

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detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disciosures made by management Conciuding on the appropriateness of management’s use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. 1f we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conciusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern Evaluating the overall presentation, structure and content of the financial statements, including the disclosures Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.

Amsterdam, July 24, 2017

Ernst & Young Accountants LLP

Stichting Child and Youth Finance International, Amsterdam Financial statements for 2016

Stichting Child and Youth Finance International Sarphatistraat 7 1017 WS AMSTERDAM Initialed for identificatio p poses only Ernst & Voun A co ntants LLP

Contents Report Balance sheet Statement of revenue and expendituce for the period ended December31, 2016 Commentary on actuals versus budget 2016 Cash flow statement Notes to financial statements Notes to the balance sheet Notes to the statement of revenue and expenditure Allocation of expenses to objectives Signatories to the financial statements Other information Auditors report Budget 2017 (unaudited)

3 4 7 8 9 11 15 17 19 20 21 24

Total number of pages in this report: 24

Initialed

for identflcation fu9oses only Ernst& YoungoJntants LLP

Balance sheet December 31, 2016 (before proposed appropnation of the balance of income and expenses) As sets

Fixed assets Tangiblefixed assets (1)

2016

2015

EUR

3,517

4,541

Current assets Receivables and prepayments (2) Cash at banks and in hand (3)

289,106 656,995

404,178 568,568

Total assets

949,618

977,287

Reserves and Funds (4) Continuity Reserve Destination Reserve Destination Fund Balance of income and expenses for the period

238,533 100,859 413,303 (291,457)

170,088 100,859 11,246 470,502

Total reserves and funds

461,238

752,695

Current liabilities (5)

488,380

224,592

Total reserves, funds and liabilities

949,618

977,287

Reserves,

funds

and

liabilities

Initialed for identification Ernst & Young Ac

ur oses only u tants LLP

be ter

Statement of revenue and expenditure for the perïod ended December 31, 2016

Source of income Income from own organizaonal fundraising (6) Income from government (7) Interest income (8) Total income sources

Actuals 2016

Budget 2016 (unaudited)

Actuals 2015

EUR

1221,914

1,030,960

1598,135 352,920 9

1,221,980

1,030,960

1,951,064

122,286

323803

272,865

361,825

154,705

336,741

420,034

325,460

380,622

298,954

260363

217,690

1,203,099

1,064,331

1,207,918

50,568

67,292

53,169

259,770

263,260

219,475

1,513,437

1,394,883

1,480,562

(291,457)

(363,923)

470,502

Expenses Expenses made for Strategic Objectives Objective 1:

Objective 2:

Objective 3:

Objective 4:

Education and inclusion: Helping children and youth under the age of 18 gain access to high quality Economic Ciüzenship education and safe and reliable banking services Global Platform: On internaonal level continue to create alliances, among policymakers and financial regulators to further increase financial education and access for children and youth at national levels. Regional and National Platforms: Building and maintaining national and regional collaborations and networks. Innovations: Develop and check the feasibility of innovations which can support the goals of the Movement and which are based on the Movements needs

Subtotal Objectives 1, 2 ,3 & 4 Expenses for fundraising Expenses from own organizational fundraising Operational and administrative expenses Total expenses Result

Initialed for identification put oses only Ernst & Young ou tants LLP

f’B.IIdInqab tter

It is proposed to appropriate the result 2016 as foNows: EUR Addition to destination fund [Al: The Mastercard Foundation EFSE Schoolbank EFSE YEI GSRD Foundation European Commission -

EUR

66,062 37,987 20,625 9,127 5,812 139,613

Deducton from destination fund [BI: Monavean Foundation The Skoll Foundaon People Postcode Lottery The Mastercard Corporation International Visegrad Fund The Mastercard Foundation

(238,993) (61,057) (57,666) f 14,892) (10,529) (9,000) (392,137)

Deduction from continuity reserve [Cl: General income, income for contribution meetings and others

(38,933) (38,933) (291,457)

Footnote A: The amount as proposed to add to destination fund of EUR 139,613 is concemed with the differences between income recognized in 2016 and expenses recognized in 2016. Footnote B: The amount as proposed to deduct from destination fund of EUR 392,1 37 is concerned with the differences between income recognized in 2016 and expenses recognized in 2016. Footnote C: The negative amount of EUR 38,933 is concerned with the difference between income recognized in 2016 and expenses recognized in 2016 relating to various donors for which no agreementis in place where specific requirements for spending are agreed.

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Index numbers

2016

2015

-Operatianal and administrave expenses in % of Total expenses [D]

17%

15%

-xpenses made for strategic objectives in % of Total expenses

79%

82%

98%

62%

-Expenses for fundraising in % of income of fundraising -Expenses made for strategic objectives in Âž of Total income

Footnote D: The operational and administrative cost reached 17% of the total expenditure in the financial year 2016. This inciudes direct and indirect costs as well as pro-bono contribution relating to work at Secretarial level in support of the strategic objectives and work supporting activies directly related to the strategic objectives. The EUR 223,203 in overhead cost allocated to administrative and operational cost represent 19% of total cost less pro-bono contributions, respectively.

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Commentary on actuals versus budget 2016 Actual expenses in 2016 of EUR 1199,683 excluding pro-bono were 6% lower compared to the budget (EUR 1278,423), though the breakup per objective is rather different than was budgeted. Overall on the year the Foundation had a negative result of EUR 291,457, though this loss was foreseen and was thus covered in large part by the positive result of 2015. When pro-bono costs are factored in, the overall difference between the budgeted and actual expenses was EUR 118,554, or 8% higher than budgeted, though there were variations on each of the objectives, each of which are explained below Much of these variaons can be accounted for by the launch of the new strategy at mid-year in Romania, and the resultant shift in priority activities and areas. Education and inciusion most costs incurred on this objective are due to SchoolBank related project costs and salanes. The difference between the overall budget and actuals for this objective (38% of budget realized) are substantial due to a repnoritization of activities within the objectives of the Foundation. In 2016 a enormous difference was that closing partnerships was no longer a strategic priority for the organization, and thus a large percentage of salary related time was no longer dedicated to this and was redistributed. -

Global Platforms- the main costs within global platforms were the Foundation itâ&#x20AC;&#x2122;s Summit held in Bucharest, Romania and the Awards Ceremony and workshops held at the City Hall in Stockholm, Sweden, communications and salaries. The substantial difference between the overall budget and actuals for this objective (233% of budget realized) was mainly due to three reasons. First, the largest probono supporter was not budgeted (EUR 100,000); second, we had unexpected costs ase with holding the Summit and the Awards, costs we had not budgeted; and third, some of the salary time associated with the education and inclusion objective, as noted above, was reallocated hete. Regional and National Platforms- the two main costs associated with this were salaries of regional advisots and their Systems Change related travel. The difference between the overall budget and the actuals (129% of budget realized) was mainly due to more project costs occurring in association with a couple of grants in Europe and slightly higher than expected salary costs. Innovations- the main costs associated with this objective are project costs of Ye! and salary costs. The difference between the overall budget and actuals (115% of budget realized) was due to slightly higher than budgeted boost camp costs in Europe. Salary costs were slighfly lower than expected in this due to a change in the team during the year. Fundraising- the expenses for fundraising were for the most part salary costs, along with some travel and documentation. In terms of the budget versus the actuals, the difference (75% of budget realized) can be accounted for by the later than expected hiring date of the Managing Director. Operations- the main costs associated with this objective are salary costs. Costs for operations were lower than anticipated (99% of budget realized) due almost entirely to the fact that the Managing Director was hired later than expected in the year and thus there was a slightly lower salary burden in the department.

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Cash flow statement Period ended December 31, 2016 2016 EUR Cash flow from operating activities Net result Depreciation

2015 EUR

(291,457) 2,681

EUR

470,502 3,991 (288,776)

Changes in working capital Receivables and prepayments Current liabilities

115,072 263,788

Cash flow from operating activities Cash flow from investing activities Additions tangible fixed assets

474,493

(351,009) (575,127) 378,860

(926,136)

90,084

(451,643)

1,657

2,808 (1,657)

(2,808)

Net cash flow

88,427

(454,451)

Increase/(decrease) cash and cash equivalents

88,427

(454,451)

Movements in cash and cash equiva!ents Opening balance cash and cash equivalents Increase/(decrease) cash and cash equivalents

568,568 88,427

1,023,019 (454,451)

Closing balance cash and cash equivalents

656,995

568,568

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Notes to financial statements General Activities Large numbers of vulnerable children and youth are stil not able to acquire essential skills provided through social and financial education, nor access financial seMces that can build their asset base and financial capability. Child and Youth Finance International aims to inijate, leverage and coordinate a global multi-stakeholder approach to these challenges, ultimately building a global consensus on a multifaceted, culturally sensitive, approach to the provision of child friendly banking services and social and financial education for children in all countries of the world. Foundation Child and Youth Finance International is a foundation located in Amsterdam. Foundation Child and Youth Finance International was founded on June 30, 2011, its vision s â&#x20AC;&#x153;That all chlldren and youth realize their full potential as responsible economic citizens â&#x20AC;&#x153;.

To achieve our mission, strategic objectives are structured along the fout pillars of the organization: 1

2 3 4

Education and Inclusion: Helping children and youth under the age of 18 gain access to high quality Economic Citizenship education and safe and reliable banking services with the purpose of equipping thern with the opportunities for financial and social secudty needed as they grow older. Global Platform: On international level continue to create alliances among policymakers and financial regulators to further increase financial education and access for children and youth at national levels. Regional and National Platforms: The core activities in this area relate to building and maintaining national and regional collaborations and networks which have placed Child and Youth Finance topics into their agendas. Innovations: Developing and checking the feasibility of innovations which can support the goals of the Movement and which are based on the Movementâ&#x20AC;&#x2122;s needs. These includes innovations related to the use of technology and innovations in reaching children and youth.

As of September 1, 2016 W.T.J van Kampen is appointed as managing director. As of September 1,2016 J. Billimoria did become a board member.

Accounting principles The financial statements are prepared under the historical cost convention in accordance with accounting principles generally accepted in the Netherlands pursuing RJ 650 (Fund Raising Organizations). Assets and liabilities are stated at face value, unless indicated otherwise.

Allocation of expenses The expenses recognized in the reporting year are allocated to the objectives or to operational and administrative costs. The allocation has been prepared in the schedule allocation of expenses to objectives.

Index numbers The index number operational and administrative expenses provides the percentage from total expenses used for operative and administrative tasks. The index number expenses made for sttategic objectives provides the percentages from total expenses used for expenses made for strategic objectives. Initialed for identification p r oses only Ernst & Younq Acc u ants LLP

1 er

The index number expenses from fundtaising provides the percentages from total income from fundraising or expenses made for fundraising. The index number expenses made for strategie objectives provides the percentages from total income used for expenses made for strategic objectives.

Summary of significant accounting policies Foreign currencies Assets and liabiliUes denominated in foreign currencies are translated into EUR at year-end exchange rates; exchange gains and losses are charged to the Statement of revenue and expenditures. Transactions in foreign curtencies during the finandal year are translated into euroâ&#x20AC;&#x2122;s at the rate of exchange ruling on transaction date.

Tangible fixed assets Tangible fixed assets are valued at historical purchase price less depreciation, determined on a straight-line basis over the estimated useful economie lives of the assets concerned, taking into account any residual values.

Receivables Receivables are valued at face value less a provision for possible uncollectible accounts.

PrĂŻnciples of determination balance of income and expenses General The result is determined as the difference between income generated by contributions, membership fees and others, and the costs and other charges for the year. Income is recognised in the year in which t is realised. Income relating to services in kind and expenses of pro bono services received are valued at their respective fair value amounts.

Income and expenses Income is recognised in the period it has been received or by contract agteed. Expenses are recognised at the historical east convention and are allocated to the reporting year in which they occurred. As the result of the aforementioned, in instance, income might not match with expenses and are in these cases processed via destination kind and/or reserves.

Depreciation Depreciation is provided by the straight-line method over the estimated useful economie life.

Cash 110w statement The cash flow statement has been prepared applying the indirect method.

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Notes to the balance sheet December31, 2016 Office

equipment EUR

Fixed assets Tangible fixed assets (1) Net book value at ]anuaiy 1 2016 Additions Depreciation charge for the year

4,541 1,657 (2,681)

Net book value at December 31, 2016

3,517

Cost Accumulated depredation

35,622 32,1 05

Net book value at December31, 2016

3,517

Office equipment is depreciated over a life term of 3 years.

Current assets 2016

2015

EUR

289,106

404,178

289,106

404,178

Receivables and prepayments (2) Other receivables and prepayments

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LVâ&#x20AC;?

2016

2015

EUR

645,913 7,483 2,000 1,112 487

558,278 7,403 2,000 98 789

656,995

568,568

Cash at banks and in hand (3) Current account ABN AMRO Bank Saving account ABN AMRO Bank Bank Business Deposit Paypalbankaccount Cash in hand

Cash at banks and in hand are available on demand.

Reserve and funds (4) Continuity reserve

Destination reserve

Balanceati ]anuary, 2016 Appropriation of balance 2015 Balance income/expenses 2016

170,088 68,445

Balance at December31, 2016

238,533

100,859 -

100,859

Destination Balance of fund income / expenses 11,246 402,057 -

413,303

Total

470,502 (470,502) (291,457)

(291,457)

(291457)

461,238

752,695 -

In accordance with the provisions of Article 19 of the articles of association, the Board decides on the appropriation of the balance of income and expenses. The appropriation of balance income and expenses is proposed on page 5 of the financial statements.

Con tinuity reserve The Foundation wants to ensute sustainability of the organizaijon so that its international network is not affected. Therefore the Foundation wants to create a continuity reserve to cover operational and program costs for a period of 6 months. This time frame is based on a pwdent assessment of the time required to source additional funding. According to â&#x20AC;&#x2DC;The Wijifels codeâ&#x20AC;&#x2122; this reserve should not exceed 1,5 times the operational costs. A higher reserve wilt need clarification. On December31, 2016, the reserve was below this limit. The continuity reserve is built up by income primarily from private donors or membership fees that are not specified for a particular activity Within the continuity reserve before result appropriation no balance is included as destination fund.

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Destination reserve The Foundation creates a desnation reserve for the purpose to allow the organization to reach out to vulnerable children and youth around the world, ensuring they have access to economic citizenship education and access to financial services. As per boatd recommendations, the reserve remains locked until the end of 2017 at which point it will become available for immediate use, though future use of this reserve will be decided in agreement with the Board.

Destination fund The Foundation creates a desUnaUon fund for income recognized in a year, conform contract terms, which is not spentyet. 2016 2015 EUR

EUR

Current Iîabîlïtïes (5) Accounts payable Other payables Wage tax and social security’s payables Accrued holidays Received in advance Postcode Lottery Received in advance Mastercard Foundation Received in advance Mastercard International Received in advance Emirates Foundation Received in advance Postcode Global Trust Received in advance European Commission

4,782 29637 20,948 18228 262,547 82594 70,244 -

488,380

32,048

4,773 29,589

14,456

73,258 34,232 36,236

224,592

Employee information In 2016 the Foundation employed on average 17 fFTE:15,1) employees and 2015: 20 fFTÉ: 18,5). The employees are divided in FTE’s over the objecves as follows: 2016 2015 Education and inciusion Global Platform Regional and National platforms Innovations Fundraising Operations Total employees

4,6 3,1 0,1 2,7

4,1 2,2 6,1 3,5 0,1 2,5

15,1

18,5

2,3 2,3

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EUR

Grass salary Social contributions

624,432 106,597

707,558 130,048

Total personnel cost

731,029

837,606

Remuneration Board of Directors No members of the Board of Directors received any remuneration for the year 2016(2015: EUR 0). The Foundation is managed by the executive director who has a full time base definite contract ending December 31, 2017. The following costs are derived from the salary administration and comprise of the salary of the executive director for the period September 1,2016 until December 31, 2016: EUR Grass salary Social contributions

23,668 4,039

Total salary costs executive director

27,707

The executive director is employed as from September 1, 2016. The grass salary per month is EUR 5.916,29. In the peod January 1,2016 until August 31, 2016 the foundation was managed by an executive director who did not receive salary or remuneration. This former executive director did become a board member as of September 1, 2016.

Contingencies and commitments There are no off balance sheet commitments as per December 31, 2016.

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Notes to the statement of revenue and expenditure December 31, 2016 2016

2015

EUR

Income from own organisational fundraising (6) The Mastercard Foundation [1] EFSEYEI The Mastercard Corporation European Commission EFSE Schoolbank Emirates Foundation Peoples Postcode Lottery (UK) GSRD Foundation International Visegrad Fund De Nedeandse bank Monaeven Foundation Skoll Foundation Foundation Energo GSRI Partnership fees Contributions and meeUngs Pro bono Google Pro bono McKinsey Pro bono Services Houthoif Buruma Pro bono Services Ernst & Young Accountants LLP Pro bono Sales Force Pro bono Services Deloitte Others

255,1 23 132,110 100,000 92,563 80,000 73,258 65,706 43,750 40,000 10,000

596,268 -

100,000 81,465 -

211,251 -

20,000 -

6,581 1,314 100,508 75,000 89,945 9,075 13,556 25,670 7,754

268,993 61,596 29,934 8,976 4,500 9,541 76,207 55,000 30,250 15,000 13,527 7,817 7,810

1,221,914

1,598,135

Multiple year donor commitments are as follows: 1 The Mastercard Foundation three year contract from April 2016 until March 2019, totaling USD 1,243,266 of which EUR 255,123 is the first year of income in 2016. â&#x20AC;&#x201D;

Income from government (7)

ICS [EJ

2016

2015

EUR

EUR -

352,920 352,920

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Footnote E: The income of ICS via the co-financing system (MFS) of the Ministry of Foreign Affairs af the Netherlands in support of Dutch non-government organisations’ interventions in developing countries is recotded separately as income from government (7). Multiple year donor commitment is as follows: 1 ICS three year contract from 2012— 2015, totaling EUR 1546,675. Income for 2015 is EUR 352920. —

Interest income (8)

Interest saving account ABN AMRO Bank

2016

2015

EUR

EUR 66

lnftialed

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AllocatĂŽon of expenses to objectives

Strategic objectives

Education and inclusion: Helping children and youth under the age of 18 gain access to high quality Economic Citizenship Education and safe and reliable banking services, Global Platform: On international level continue to create alliances among policymakers and financial regulators to further increase financial educaon and access for children and youth at national levels.

EUR

40,170

22,282

Regional and National Platforms: Building and maintaining national and regional collaborations and networks Innovations: Developing and checking the feasibility of innovations which can support the goals of the Movement and which are based on the Movement needs

126,879

160,075

Wages Social securities and taxes Depreciation and interest expenses Other costs

13,153 2246

180,090 31,453

225,051 40,613

97,571 13,817

Subtotal

55,569

233,825

392,543

271,463

Pro bono services [EJ

66,717

128,000

27,491

122,286

361,825

420,034

298,954

Total expenses

Donor allocations have been made in accordance to the specifications of the donors in the contracts. Allocations of costs to objectives have been made based on actual costs and salary costs spent on meeting the said objective.

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Expenses for Fundraising

Operational and administrative [G]

EUR

Total 2016 EUR

Budget 2016 EUR

Budget 2017 EUR

40,170

77,000

62,500

22,282

60,500

61,904

126,879

57,500

75,680

160,075

108,000

19,916

2,663

91,079 15,542 2,681 113,901

624432 106,597 2,681 116,564

752,610 132,813 7,000 83,000

750,161 132,381 3,000 146,500

23,077

223,203

1,199,680

1,278,423

1,252,042

27,491

36,567

313,757

116,460

252,484

50,568

259,770

1,513437

1,394,883

1,504,526

17,488 2,926 -

Footnote F: Pro bono goods and services for 2016 are valued at EUR 313,757 and have been added to the expenses totals for 2016. Footnote G: The operational and administrative oost reached 17% of the total expenditure in the financial year 2016. This includes direct and indirect costs as well as pro-bono contribution relating to work at Secretarial level in support of the strategic objectives and work supporting activWes directly related to the strategic objectives. The EUR 223,203 in overhead cost allocated to administrative and operational cost represent 19% of total cost less pro-bono contributions, respectively. Initiaed for identification Ernst & Young Ac

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Signatories to the fĂŻnancial statements Amsterdam

2017

Managing director: W.T.J van Kampen

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Other information Proposed result appropriation In accordance with article 19 of the articles of association, the annual proceeds from the reserve and funds as well as the gains whatsoever named and received in any year, not destined to be regarded as reserve and funds, can be used for the realisation of the objectives of the company. The managing director proposes to appropriate the balance of income and expenses as follows: Addition: EUR 66,062 The Mastercard Foundation, EUR 37,987 EFSE Schoolbank, EUR 20,625 EFSE YEI, EUR 9,127 GSRD Foundation, EUR 5,81 2 European Commission Deduction: EUR 238,993 Monaven FoundaUon, EUR 61,05? Skoll Foundation, EUR 57,666 People Postcode Lottery, EUR 14,892 The Mastercatd Corpotation, EUR 10,529 International Visegrad Fund, EUR 9,000 The Mastercard Foundation Deduction: EUR 38,933 from continuity reserve. —

—

For a detailed explanation of the result appropriation, reference is made to page 5 of the financial statements. Awaiting a decision from the Board, the balance sheet is prepared before appropriaUon of the balance of income and expenses.

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Auditors report

Budget 2017 (unaudited) Budget 2017 EUR Source of income Income from own organizational fundraising Income from government Interest income

1433,733

Total income sources

1,433,733

Expenses Expenses made for Strategic Objectives Objecve 1:

Objective 2:

Objective 3:

Objective 4:

Education and inclusion: Helping children and youth under the age of 18 gain access to high quality Economic Citizenship education and safe and reliable banking services Global Platform: On international level continue to create alliances, among policymakers and financial regulators to further increase financial education and access for children and youth at national levels. Regional and National Platform: Building and maintaining national and regional collaborations and networks. Innovaions: Develop and check the feasibility of innovations which can support the goals of the Movement and which are based on the Movements needs

Sub tota( Objectives 1, 2, 3 & 4 Expenses for fundraising Expenses from own organizational fundraising

Operational and adminĂŻstrative expenses Total expenses Result

263,773

326,417

351,959

174,327 1,116,476

85,675

302,375 1,504,526 (70,793)