StepEx raises £1.1 million to empower students’ financial and professional future

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Fintech startup StepEx, has today raised £1.1 million in funding. StepEx provides affordable student finance based on future earnings rather than debt. Among the backers of the round are Anthemis, BBVA’s Venture Partnership, Triple Point Ventures and angel investor Chris Adelsbach. The funding will be used to further development of the company’s machine learning model and user platform, as well as expansion of the senior team.

Founded in 2017, StepEx enables borrowers to fund their education by selling a proportion of their future income for a defined period. With repayments that are always affordable no-one is forced into bankruptcy. This makes further education and the wealth creation it brings available to everyone at far lower borrowing costs than through traditional unsecured personal debt providers.

StepEx can predict an applicant’s future earnings with a high degree of accuracy by using machine learning and a sum of the individual’s data such as technical skills, education and banking data. Looking down the road, the startup also states that they will be able to use this data to close the feedback loop and provide educators with data about pricing and the value courses are delivering. Students can then pay a percentage of their earnings for a fixed period. This is only triggered upon completion of their course when they cross an agreed salary threshold based on StepEx’s forecast of their expected earnings. StepEx charges course providers an up-front fee per student, and takes a small commission on each monthly repayment.

Finance for postgraduate and technical qualifications is outdated and prohibitive. The best courses are too expensive for the vast majority of potential students, and the costs are not covered by Government loans. Debt is a poor solution to this problem, with lending terms based on past income, which restricts opportunity for younger and less wealthy individuals and limits upward social mobility. Outcome-based finance fixes this and opens up enormous economic opportunities for people who would otherwise be priced out of the kind of courses that unlock significantly higher earning potential.” explained founder and CEO of StepEx Daniel George.

Source: Tech.eu “London-based fintech StepEx employs ISA model, raises £1.1 million”

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