High-income Global North societies tend to have collapsing birthrates and rapidly aging populations, so it’s easy for them to forget that for much of the world, the opposite is true. Many Global South societies are exploding with young people who need education, jobs, vocational support, housing and so much more. For the finance sector, these markets represent the labour force, the entrepreneur base and the consumers that will drive the region’s development for the next generation.
Over 1.3 billion people in developing economies are between 18 and 35. In sub-Saharan Africa and South Asia, the median age in some countries is in the teens or low twenties. Across regions, young adults are more likely than older cohorts to start businesses. This is not a marginal segment that the development sector should try to reach with add-on services. In every way, youth is the economic centre of gravity of the Global South.
And yet, financial systems were not designed around the realities of youth. Most young people in emerging markets enter adulthood navigating unstable income, informal work, incomplete education, limited assets and weak safety nets. They move between dependence and independence. They experiment with livelihoods. They take risks. They absorb shocks. Their financial lives are fluid and transitional. Young people are navigating some of the most consequential transitions of their lives — often with limited support, few buffers and little room for error. Moving from school to work, from dependence to independence, from aspirations to reality: These moments shape not only individual futures, but the social and economic trajectory of communities and entire countries.
As a result, youth is best understood as a phase of transition or movement rather than a fixed category — and financial needs shift as young people move through different stages of life.
Coming of Age in a Time of Uncertainty
Further increasing the complexity of these transitions, today’s youth are coming of age in conditions of increasing uncertainty. Demographic bulges across the low- and middle-income world mean young people are entering the workforce in numbers that formal employers cannot absorb, while competing for finite support and resources. Employment is irregular. Income is uncertain. Technology is transforming the livelihood landscape. Climate shocks, health events, migration, conflict or family obligations can disrupt plans overnight. Informal coping mechanisms — whether they involve family support, savings groups or ad hoc borrowing — remain essential, but are often stretched thin.
But traditional products and banking practices — e.g., rigid credit, high minimum balances, collateral-heavy lending and slow onboarding — are poorly matched to this reality. The result is predictable: Like older adults, young people also use financial tools, but not always formal ones. They save in groups. They borrow from their family. They rely on trust networks rather than institutions. Digital channels are growing fast, but digital-focused client protection, youth-tailored savings, and loan products designed for clients’ evolving needs in key stages of life remain limited.
A Market Segment with Diverse Financial Needs
What’s more, youth is not a monolithic segment of the financial services market. An 18-year-old rural agricultural worker with seasonal income has profoundly different needs from a 24-year-old urban gig worker. A young woman starting a home-based enterprise fresh out of secondary education faces different constraints from an established, 30-year-old small business owner. A migrant worker sending remittances operates under a different risk profile than a university graduate entering formal employment.
Even within the broadest age range that can define youth, 18-35, the transitions are significant: Late adolescence involves education, first income and initial financial independence. Early adulthood often brings labour market entry, entrepreneurship, migration and family formation. And late youth or the next stage of adulthood might involve: business expansion, asset acquisition, buying a home, stabilising income and managing dependents. Each stage carries different financial behaviours, risk exposure and opportunity.
Moreover, young men and women often experience these stages differently. Too often, young women have less control over resources, more limited mobility and greater exposure to unpaid care responsibilities. Gaps in financial access often open early and widen with age; indeed, young women and men’s access to and usage of financial services remain even until their late teens, but then markedly diverge around the age of majority. And rural youth face particular challenges: limited infrastructure, reliance on seasonal or agricultural income, weak access to markets, and few formal assets. Informal finance, savings groups and value-chain arrangements often play a central role in how they manage money and risk.
The opportunities for the inclusive finance sector to better serve young people — to “unlock youth-inclusive finance” — are immense. To that end, e-MFP and its partners are pleased to launch the Luxembourg Award for Inclusive Finance (LAIF) 2026, formerly known as the European Microfinance Award, on the theme of “Unlocking Youth-Inclusive Finance.”
The Luxembourg Award for Inclusive Finance (LAIF) 2026 on Unlocking Youth-Inclusive Finance
The Luxembourg Award for Inclusive Finance 2026 will highlight organisations active in financial inclusion that accompany young people as they navigate life’s key stages, helping them develop skills and seize the opportunities needed to build a prosperous future.
The evaluation teams are excited to see what applicant organisations are doing. On the financial side, this may include safe and accessible savings options for early stages; flexible credit for education, enterprise or productive assets as livelihoods take shape; and, in some contexts, insurance or other risk-sharing mechanisms that help young people absorb shocks without derailing progress. On the non-financial side, support may involve financial capability building, livelihood or entrepreneurship skills, mentoring, or guidance linked to specific life moments — such as entering work, starting a business or managing income volatility.
Whatever the approach, it will be important for applicant organisations to demonstrate understanding of a specific youth segment and to design a combination of services that meet youth where they are, prepare them for their next life stage and accompany them as they develop into adults.
The grand prize is €100,000, with two runner-up awards of €10,000 each. The winners will be announced at a ceremony at the European Investment Bank in November, during the Inclusive Finance 26 (IF26) conference. Beyond the prize money, shortlisted organisations benefit from international visibility, sector recognition and the opportunity to share their work with a global audience at IF26.
Applications are welcome in English, Spanish or French. Eligible applicants may include microfinance institutions, banks, cooperatives, fintechs, non-bank financial institutions and other organisations providing inclusive financial services — directly, or in partnership with others. For detailed information about eligibility criteria, the evaluation process, application timelines, guidance, benefits for semi-finalists and finalists, and more, please visit the new Luxembourg Award for Inclusive Finance site: www.inclusivefinanceaward.lu.
Finally, to support potential applicants, e-MFP will host online guidance sessions explaining the theme, eligibility criteria and application process. These sessions will provide an opportunity to clarify questions and ensure submissions align with the Award’s focus. Sessions will be offered in English at 10:00 CET on March 25, Spanish later that day at 16:00 CET, and French at 16:00 CET on March 26.
Round 1 of the application process closes on April 12 at 23:59 CET. The Award organisers are looking forward to hearing from many and varied organisations innovating in this most important field.
The Luxembourg Award for Inclusive Finance was launched as the European Microfinance Award in 2005 by the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade. It is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg (InFiNe.lu), in cooperation with the European Investment Bank (EIB).
Sam Mendelson is Financial Inclusion Specialist at e-MFP and part of the design and evaluation team for the LAIF2026.
Tim Nourse is CEO of Making Cents, and is supporting e-MFP in the design and implementation of the LAIF2026.
Photo credit: The Yudel Media
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