Credenc, a leading education loans platform, recently announced that it has raised INR 17.8 crore (US $2.5 million) in seed funding, led by Omidyar Network India with participation from EMVC , Better Capital, and IIMK Alumni Fund. The start-up intends to build up a loan book of US $0.5 billion over the next 5 years. The capital raised shall be used to expand operations to 1,000 colleges across 50 cities over the next 2 years. Credenc also plans to hire across technology, credit and banking partnerships.
Delhi-based Credenc, founded by Avinash Kumar and Mayank Batheja in 2017, works as the digital finance desk of 200+ management colleges across 17 Indian cities. The start-up has approved loans worth INR 100+ crore (US $15 million) as yet. With more than 200 loan requests a day, Credenc undertakes a rigorous evaluation process using a proprietary AI model which tracks 15 million data points to predict the future income of students applying for loans. Industry-wide, approval for education loans can take up to 2 months, vis-a-vis Credenc which qualifies applications within a fraction of that time.
As a unique platform to finance meritorious students for their college expenses by underwriting their employability, rather than the means available to their families, Credenc is disrupting the domestic higher education financing market with its future income prediction model which ensures the best students of our country are not starved for funds for their education.
As per Credenc, 30% of Indian students’ families sell assets to fund their education. 20% borrow from local money lenders at rates as high as 3% a month. Another 30% give up on a college education. The start-up has mapped 70,000 job roles across 50,000 companies in India and developed a deep understanding of employability in India, to change the status quo. After providing financial support, Credenc works with students and helps them with employability services, handholding applicants as they transition from student to professional life.
Speaking of the round of funding, Mayank Batheja, Co-founder, Credenc, said, “Currently only 5% of the ~$50 billion annual spend on college tuition fee is financed by organised lenders. We believe this penetration should be at least 15%,” to which Avinash Kumar, Co-founder added, “Our target segment consists of the top 10,000 colleges in India, and we would like to ensure that we are available for the top 10% of students from these colleges.”
“Credenc’ differentiated lending model provides financing to deserving students, which helps them access post-secondary education and get meaningful employment. Avinash and Mayank’s solution will help in creating a level playing field for students from the Next Half Billion population by making quality education more accessible. We see this partnership as an opportunity to demonstrate that a highly impactful and profitable business can be built in the large and untapped higher education financing space,” said Sarvesh Kanodia, Associate, Omidyar Network India.
“Credenc is solving a multi-billion dollar domestic education financing problem, putting students’ abilities at the center. Their distribution model of being the ‘financial aid office’ at colleges is spot on and will unlock a large market opportunity, creating a win-win for students and colleges,” said Vaibhav Domkundwar, CEO, Better Capital, to which Melissa Frakman, Managing Partner, EMVC, added, “The innovation that Credenc has developed — and is already deploying across institutions in India — has the opportunity to change the course of retail financial services in India, unlocking financing and other resources for millions of creditworthy, high-potential students who otherwise wouldn’t have access to credit. Growing the massive workforce required to meet India’s skilled labour demand is a challenge that’s fundamental to India’s economic growth and Credenc is solving this with new technology and distribution.”
The annual spend on college fees in India is US $50 billion or INR 3.5+ lakh crore, of which only 5% is financed by organised lenders. For the USA, this figure stands at more than 60%. Credenc intends to change the segment perception and reduce underwriting risk basis its future employability score, which will help this percentage go up to 15%, as it partners with more than 3,000 colleges in 100+ cities to build an INR 3,500+ crore loan book in the next 5 years.
Credify announces seed investment by BEENEXT and DEEPCORE
Credify Pte Ltd is proud to announce it has successfully closed a USD 1M seed round investment with two leading Venture Capital funds: BEENEXT and DEEPCORE.
Credify provides Universal Identity and Trust System solutions to companies active in e-commerce and finance. Credify’s Universal Identity product acts as a personal data bridge, connecting consuming services like e-commerce marketplaces and lending platforms with institutions that possess valuable, yet untapped information like identity verification results and credit scores. In this way, Credify enables entirely new revenue streams for these traditional organisations in a completely secure and data privacy compliant manner.
On top of this powerful identity system, Credify is developing an innovative credibility mechanism that addresses issues inherent to the trust systems we rely on in e-commerce and digital lending, like fraud and manipulation, that lead to an estimated USD 1T in transacted value being negatively impacted every year.
Chosen out of 250+ companies around the world, Credify is one of the outstanding startups in Plug and Play Japan’s 2020 FinTech Accelerator program. Credify was also awarded the UK Tech Rocketship: Future of Financial Services Award 2019 by the UK’s Department of International Trade and Scottish Development International.
This funding round allows Credify to enhance the development of its suite of products, further localize its software development operations in South East Asia, and move ahead with its live client engagements. ASEAN nations represent the fastest growth opportunities globally in FinTech and E-commerce: USD 72B FinTech market with 72.5% CAGR by 2020, and USD 102B E-commerce market by 2025. At the same time, South East Asia fraud rates in finance and e-commerce are one of the highest globally. Credify aims to tackle these issues with its leading-edge technologies.
Credify CEO Makoto Tominaga expressed his excitement: “This investment from BEENEXT and DEEPCORE represents far more value than the capital that will assist us as we execute on our vision to elevate trust in digital economies. Both firms bring with them strong networks within our target markets and deep understanding of the strategic and practical execution necessary to transform early stage businesses to large-scale growth enterprises. Credify could not have asked for better partners in this early stage of our journey, and we are overwhelmed with appreciation to have this opportunity to work with both teams for many years to come.”
BEENEXT CEO Teruhide Sato shared his thoughts on the investment: “We were impressed by the quality of Credify’s multi-disciplinary team and the technology they have developed which provides great synergies with some of our portfolio companies. We look forward to supporting Credify in its business development and expansion in South East Asia and beyond.”
DeepCore commented: “We appreciate the Credify team’s deep understanding of the industry’s pain points and the ability to implement cutting-edge technologies, such as blockchain, into systems to solve issues. We hope that the excellent team that has developed the business at KERNEL HONGO will expand its business to the world by solving issues in areas where counterparty risk occurs.”
Consumers Are Willing to Share Personal Data in Exchange for Better Customer Experience, Broadridge Study Finds
Amidst a backdrop of increasing emphasis on data privacy via the introductions of the General Data Protection Regulation and California Consumer Privacy Act, nearly half of consumers in North America (45%) would be willing to share their data if it meant that it would enhance their customer experience (CX), according to a new study from global Fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR).
The annual study, which surveys the opinions of more than 3,000 individuals in North America on topics relating to consumer experience and essential communications, revealed that consumers’ desire for enhanced experiences coincided with an even stronger sentiment around the need for more data privacy legislation. In fact, more than 84% want more legislation that increases their ability to protect and control the personal data they provide companies, as well as greater transparency on how their data is used.
“Data privacy concerns are at a peak, and yet consumers are placing immense value on their experiences and are willing to share more of their personal data if it enhances the services they receive in return,” said Matt Swain, managing director and practice lead for communications consulting services at Broadridge. “Data is the bedrock of customer experience and providers of essential communications, like bills and statements, have a significant opportunity to modernize the way they customize consumers’ experiences. This can only be done if they are clear about what data is needed, how it will be managed and, ultimately, how it will improve the lives of their customers – on and offline.”
Demand for Paperless Communications Rises, and Companies are Missing Out
When it comes to essential communications, interest in going digital is growing. Compared to the 45% who prefer paper, two out of three respondents (67%) switched at least one bill or statement to paperless in the last year.
Although there’s increasing demand for digital bills and statements, the data suggests a missed opportunity for companies to grow paperless adoption, customer engagement and convenience at the onset of the relationship, while cutting costs. Only four out of 10 consumers were asked to go paperless when they opened a new account and 29% said that they were never asked at all.
In terms of motivations for going paperless, most respondents (72%) agree that reducing clutter was their primary reason for switching to online communications from their providers this past year.
Helping Consumers Take Financial Control with Advanced Features
Consumers making the leap to paperless are also increasingly looking to get more out of their bills and statements so they can take control of their finances. In fact, 72% would prefer advanced options, such as customizable dashboards, to control the look and feel of bills and statements. For those who have investment or retirement funds, insights and recommendations on their activities and spending relative to their financial goals are increasingly important (59%).
Interestingly, nearly one-third (29%) of respondents say they never review their bills or statements for reoccurring “zombie subscriptions,” which often hit consumers’ bank accounts unexpectedly.
Beyond customization of communications, consumers also want centralized delivery and storage options for bills and statements in the cloud (40%), particularly when it comes to accessing important and time-sensitive financial information. More than two-thirds (69%) of respondents say having all their financial documents in one archived location would make things like filing taxes much easier.
“Companies have the opportunity to transform the customer experience through bills and statements,” added Swain. “By reframing these household communications, companies can create more meaningful engagement with their consumers, helping simplify and organize their bills and statements, while also creating new layers of brand equity and additional revenue opportunities.”
To download the report, click here.
Broadridge Customer Communications commissioned ENGINE to conduct a CARAVAN Omnibus Survey. The 45-question survey was administered between November 6-13, 2019, to 3,006 U.S. and Canadian residents ages 25 and older. The sample was weighted to current U.S. and Canadian Census data for age, gender and region. The figures are statistically significant at the 95% confidence level with a margin of error of ±2 percentage points.
SOURCE Broadridge Financial Solutions, Inc.
Global Digital B2B Payments Market: Size, Trends & Forecasts (2020-2024)
Dublin, Feb. 18, 2020 (GLOBE NEWSWIRE) — The “Global Digital B2B Payments Market: Size, Trends & Forecasts (2020-2024)” report has been added to ResearchAndMarkets.com’s offering.
This report provides an in-depth analysis of the global digital B2B payments market, with a detailed analysis of market size and growth. The report provides an analysis of the digital B2B payments market by value and by modes.The global digital B2B payments market has observed stable growth in the past few years and the market is further expected to rise at an affirmative rate during the forecasted period (2020-2024). The growth of the global digital B2B payments market would be bolstered by the growth drivers such as growing real-time payments, increasing adoption of cloud-based solutions, escalating smartphone penetration, emerging B2B e-commerce industry, swelling business process automation, rising urbanization, increasing cross border payments, etc.The major players dominating the digital B2B payments market are Alibaba Group (Ant Financial), American Express, Bottomline Technologies Inc., and Coupa Software Inc. The four companies have been profiled in the report providing a detailed analysis of their financial information and business strategies.Key Topics Covered: 2. Introduction
2.1 Payments: An Overview
2.2 B2B Payment: An Overview
2.3 History of B2B Payments: An Overview
2.4 B2B Payments End-User: An Overview
2.5 Digital Payments: An Overview
2.6 Process of Invoice to Payment Automation
2.7 Streams of Digital B2B Payments: An OverviewFor more information about this report visit https://www.researchandmarkets.com/r/ejgrq0Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.CONTACT: ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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