In today’s job market, it’s essential to upgrade your skills. Education is an ongoing process that doesn’t stop with schooling or a graduation degree. With the technology enhancement and increasing needs for almost every profession.
Nowadays, companies look for an expert workforce with updated skills.
The evolving education Trends have increased the fees and catalyzed the need for better financing.
This has led to constant innovation in the education Fintech sector. The gap between education and financing has been overcome using digital and tech-equipped resources. Here are some of the upcoming Trends in the education Fintech sector that will be seen in the coming year
With increasing job profiles across different sectors,
Education is becoming more outcome-oriented. The student will now focus on their skill upgradation, which will help them boost their careers. There is a rise in income share agreements or ISA; ISA provider finances the student’s education. This financing is more important to the improved skill outcome after an educational course.
Fintech is one powerful channel that connects educational institutions and students with financial entities. Financial institutions provide cash flow management and working capital for education finance. The ongoing transformation of the education system has resulted in more outcome-oriented finance, allowing students to get an education to achieve their lofty professional aspirations.
Also Read: Evolution Of FinTech
Customized financing plans
There are typically only two stakeholders in the financial market for a loan transaction. The situation is, nevertheless, steadily evolving. All parties are considered in the current financing setup to better understand repayment capacity and customization. The borrower (the student in the instance of an education loan), the lender (the financial institution), and the educational institution are all involved in fintech (service provider). Here, the entire project—the educational programme and its results—is a crucial factor to consider.
The education fintech solutions, which are a new type of financing, take into account the borrower’s capacity to repay and the project’s overall success. After careful consideration, an education loan is approved based on the student’s academic standing and the history of the educational institution.
All parties benefit from the shared risk between the financier and the educational institution, resulting in a win-win situation. The institutes may be able to enhance their top-of-the-funnel sales while also providing the students with tailored and flexible financing options.
Altered repayment capabilities
‘Buy Now, Pay Later (BNPL) has become a prevalent phenomenon in digitalization. Similarly, students and parents increasingly favour BNPL, zero-cost, and seamless pay-later solutions in the education financing market. In contrast to traditional choices, there is a rising number of unique customer-centric education financing programmes.
As more and more businesses shift to the pay-later model, the education fintech sector is anticipated to follow suit. For example, a student can pay the entire tuition charge and repay it later in multiple payments under a redesigned financing model. Students and parents can pay for their education in tiny instalments to the fintech using the zero-cost option.
Beyond the conventional educational system, the roots of education financing have gotten deeper. The educational ecology has changed with the growth of employment opportunities in fields like graphic design, hospitality, interior design, etc. Education was restricted to formal education in schools or universities, but it has now broadened to include skill-based training. The need for professional education in aviation, nursing, soft skills, vocational training, and EdTech has grown significantly, driving demand in the fintech.