With tuition fees later, the fintech industry is transforming education in India

• Access to affordable education – Most traditional financial institutions have traditional structures to approve fewer categories of student applicants and limited geographic coverage through their branches. However, the fintech industry has completely changed this scenario. The fintech platforms’ financing solutions reach out to a wider demographic segment through their broad-based insurance policies, thereby impacting students across categories from Tier 1 to Tier 4 cities
• Customized financing – To meet the needs of students, parents and institutions, the emerging education industry requires customized financing solutions. When developing financial products, it is crucial to consider different student segments, course outcomes and institutional performance. Fintech funding platforms are heading in this direction. Fintech platforms meet current market requirements and create optimal financial products. For example, some platforms have created loan products that require students to pay a low EMI during the course. When you finish your education and get a job, you can also pay higher EMIs. It was created for students considering their current financial situation. Furthermore, the right lending product provides a win-win situation for all parties involved. Fintech platforms integrate educational institutions into the funding ecosystem. The courses offered are value-based and comprehensive, which helps to ensure the students’ ability to repay.
• Agile, flexible and scalable infrastructure – Traditional financial institutions adhere to a rigid system that does not accommodate the complex structures of the education system. While fintech platforms offer a flexible approach that can accommodate students’ different funding needs based on their educational preferences. A creative, paperless app helps students easily access lending institutions, seek instant approval and complete the loan process in minutes 24/7.
• Deeper Penetration in Bharat – India needs innovative technologies that can take educational development to tier 2 and 3 cities in the country. Digitization and technology have reached every corner of our lives and this needs to be adapted to tackle inefficiencies. The revolution technology can play in such a setup is enormous. Today with 4G and 5G (coming up), mobile penetration has reached the masses where people can have more mobile connections than bank accounts. EdTech firms are also making the most of this opportunity. They seek maximum alliances with Fintechs to promote affordable education across student segments. Today’s Fintech apps offer differentiated EdTech offerings, and the market encourages users to use and spread the word.

The bottom line

The education ecosystem has evolved with increasing job opportunities in areas as diverse as graphic design, hospitality and interior design. Once confined to schools and colleges, education now has its roots in competency-based courses. The growing demand for professional education in aviation, nursing, soft skills, vocational training and educational technology courses is creating a huge demand in the fintech sector for education.

This improved, targeted approach democratizes the financial offers and thus safeguards a larger student ecosystem with flexibly adapted solutions. This provides equal opportunities to learn, have quality education and help for timely upskilling.

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