Jason talks to Manu Smadja, CEO and Co-Founder of MPower Financing. MPower Financing is a company that specialises in lending loan to international students because they have their own specific challenges that are encountered by many people who come to a foreign country.
Episode Highlights:
- 02:30: Manu elaborates on his realization about the ongoing challenges faced by international students, citing personal experiences, and the turning point a decade ago when a student approached him for financial help, sparking the idea for MPower.
- 03:13: Manu shares the pivotal moment when a student was on the verge of dropping out due to a small financial shortfall. This event led him to question why no one was addressing this issue and motivated him to establish Empower in April 2014.
- 05:40: Jason discusses the challenges of issuing loans to young people with no credit history or assets, and Manu emphasizes the need for alternative data sources.
- 07:11: Manu discusses the complexity of acquiring customers overseas and the challenge of servicing loans globally, which has been a focus for their company.
- 13:09: Manu highlights the importance of character, creditworthiness, and the proof of capability demonstrated during the selection and integration process for international students.
- 14:09: Manu explains how MPower leverages data on placement rates, graduation rates, and post-graduation salaries as part of their compelling value proposition.
- 18:32: Manu compares the traditional loan process to MPower's approach, emphasizing the company's role in making the market for students who can't secure loans locally and providing a better experience for those who can.
- 25:27: Manu emphasizes that the impact on students helps the team stay motivated and focused on understanding and addressing the needs of the students.
Key Points:
- A leader in international student financing, MPower Financing focuses on empowering students from 200 countries attending over 400 universities in the US and Canada.
- The company's mission is to address the unique financial obstacles encountered by students studying abroad.
- MPower Financing leverages alternative data for credit assessment, providing loans to international students who may face challenges securing loans in their home countries.
Tweetable Quotes:
- "Leveraging data on placement rates, graduation, and post-grad salaries, MPower Financing ensures a compelling value proposition for students worldwide.”
- "MPower Financing was born out of the realization that small financial shortfalls were pushing international students to drop out. We aim to bridge these gaps and make education accessible."
- "In lending to international students, we challenge the misnomer of treating no-file students like bad-file ones. Credit is a trajectory, and we leverage alternative data to understand and support their unique journeys."
Resources Mentioned:
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