Avia Ustanny, Freelance WriterSO, THE young want to save. Fearing financial embarrassment, they are less interested in living a lifestyle underwritten by borrowed money.
One company has locked unto this desire and is wooing the youth market with savings-targeted programmes. It appears to have been successful. The Jamaica National Building Society claims that it has captured as much as 40 per cent of the youth savings market. Of the age group, 18-24, 44 per cent currently use JNBS, they say. Of the age group, 25-34, 39 per cent currently use the building society. The company's marketing department points out that there are three primary goals that the 34 and under age group desire to achieve. These are education, shelter and transportation. In education, savers have expressed the desire to be schooled to the tertiary level. Where shelter is concerned, they want to have a home of their own without the hassle of paying rent. Most persons in this age group would like to own their own motor vehicle, also.
The Jamaica National Building Society repackaged its savings product in May 2001 by segmenting the market in terms of demographics, catering to all age groups. Two products were particularly geared to the under-30 age group. They are JN Easi Save for savers up to 15 years old and JN Destiny for savers 16-23 years old. The JN Target and Target Plus are geared towards young professionals who want to save towards a specific goal, be it education, motor vehicle or towards the deposit for their own homes.
The Easi Save account for children 0-15 years can be opened with a minimum of $100. The benefits attached to the product are monthly school kits and a chance to win GSAT Scholarships.
The Destiny Account, which is for members 16-23 years, is opened with a minimum of $200.00. The account targets individuals who are pursuing tertiary level education and also young adults. The benefits attached to this product are a chance to win scholarships to one of three local universities, plus the advantage of getting discounts at over 30 stores islandwide with the accompanying discount cards (Destiny card).
The JNBS Target Account is for persons within the ages of 24-54 years and is opened with a minimum of $500. The account has promotional benefits for additional prize money of $5,000 as a reward for regular savings. Target Plus account is another option for the same age group. Accounts can be opened with a minimum of $2,500. Incentives include a chance to win a weekend for two at Point Village Resort and a chance to win one of ten $10,000 gift certificates. An additional bonus is that persons who open this account have the opportunity to get a higher interest of 1 per cent above JN Target.
The group has also renewed its Schools Savings Programme, the basic objective of which is to ensure that children develop a regular savings habit and to get the children as customers from very young so that they will remain with them.
Since October, 2001, they have made presentations in 147 schools and have opened approximately five thousand, four hundred new savings accounts (5380). For the financial year, up to February JNBS has garnered approximately Seven Thousand five hundred (7,500) Easi Save, Three Thousand Five Hundred (3,500) Destiny, Three Thousand (3,000) Target Plus and Eight Thousand (8,000) Target Accounts. From among their young membership, they also received fifty-four (54) Home start loans for approval and forty- two (42) disbursements to new property owners. The young, however, are busier saving than borrowing.
