Financial technology companies founded by business school graduates are revolutionizing financial services and disrupting areas such as payments, money transfers and SME loans.
The peer-to-peer lending industry was given a jolt of energy on a winter week in San Francisco earlier this year.Gearing up for a potential IPO, the head of one of the biggest companies in the financial technology – fintech – space secured $200 million in funding for its push further into the financial sector.
Mike Cagney, chief executive of Social Finance (SoFi), hopes to shake-up the US lending market online. “This is the start of a fundamental shift in how people will shop for loans,” says Mike.
The funding round would help the company to diversify from its roots in student loans and into other areas of P2P finance.
Mike is just four years out of business school at Stanford in California, where he incubated SoFi. The company launched as an alternative to traditional banking in 2011 and was the first to offer refinancing of both federal and private student loans.
In that time the company has grown to have issued more than $1.75 billion in loans, its growth fuelled by credit from the likes of Goldman Sachs, Barclays, Deutsche Bank and Credit Suisse.
Market leaders in the fintech space – from Zopa to Lending Club and big fish like Apple – are revolutionizing financial services, disrupting areas such as payments, money transfers and SME loans.
Like SoFi’s chief a number of these disruptive companies are headed by business graduates. DoPay, Onfido and AMP Credit Technologies are all headed by business school alumni. And the founders of both Zopa and Lending Club have MBA degrees.
The success of SoFi illustrates the rapid evolution of the P2P lending sector in particular, which emerged to disrupt big banks by directly connecting borrowers with lenders and charging cheaper rates for both.
“Our ambition is to serve the needs of all small businesses in the UK,” says Thomas J Delucca, CEO of AMP Technologies and an MBA graduate of John's Graduate School of Business.
An alternative finance provider, AMP Technologies enables banks to lend money to small and micro-businesses. The platform leverages payment processing, data analytics and predictive modelling to help big banks, which often struggle to loan to start-ups because of a lack of SME credit history.
Thomas, a former manager and senior vice president at American Express and Planet Payment, says that AMP Technologies allows for more competitive pricing on transparent terms for business customers.
AMP Technologies and similar ventures are at the forefront of a technology-led revolution that is empowering consumers and other start-ups by making capital cheaper and easier to obtain.
New sources of finance, new forms of currency and new methods of payment to new customers are just some of the concepts being pioneered by innovative fintech groups.
In a sign of the excitement around fintech, one of the industry’s biggest companies, Lending Club – founded and led by an HEC Paris MBA – floated recently with a valuation of more than $5 billion.
SoFi’s latest financing round has drawn speculation of a potential second listing for the nascent P2P lending industry.
It recently recruited the head of the New York Stock Exchange and the founder of PayPal as advisers, as it seeks to expand beyond student loans into areas like mortgages and personal loans.
The San Francisco-based lender plans to bring the entire mortgage experience online and through smartphones and tablets. “The mortgage experience leaves much to be desired,” says Mike.
Since starting in this area of business last autumn SoFi has built a portfolio of around $100 million, offering mortgages of up to $5 million to about 20 US states.
Mike says that mortgage lending was once a draconian process where banks treated people like money launderers until they could prove otherwise. “I’m proud that we’ve turned this experience on its head,” he says.
SoFi has broken much ground in the lending market. The company sold the first securitisation of P2P loans to secure a credit rating in 2013.
Like SoFi, the biggest P2P lenders – Prosper and Lending Club – are based in the US. But there are many ambitious entrepreneurs trying to democratize financial services from across the Atlantic.
Zopa, the P2P financing platform, launched in the UK in 2005 in a barn in Buckinghamshire. The UK’s original P2P lender has helped more than 51,000 people to lend more than £770 million in loans.
Zopa has pioneered an online lending industry that is now worth more than $10 billion globally, according to figures from UK and US trade bodies
Giles Andrews, Zopa’s CEO and co-founder, who earned an MBA at INSEAD, says he created Zopa because he saw the potential to bring people together over the internet without having to go through a bank.
“This has prompted a revolution in the financial sector worldwide,” he says. He adds that he sees Zopa becoming “the norm” in lending, and compares the company to eBay, the online marketplace. “Peer-to-peer lending is certainly here to stay,” he says.
Zopa is based in London and Claire Cockerton, the CEO and founder of Innovate Finance, an independent membership organization that represents fintech across the UK, believes Britain is a hub for similar companies.
“The UK’s strength as a fintech hub is due to a range of factors – including access to capital, an advanced financial services sector and a technologically savvy customer base,” says Claire, an MBA graduate of Imperial College Business School.
AMP Technologies, which secured $5 million in a funding round from SBT Ventures last year, announced the launch of its UK credit service at a gala for the fintech sector in London organized by Innovate Finance.
DoPay, a cloud-based service that manages the payroll and cash management services of employers, was also launched at the conference.
Led by chief executive Hazim Medani, a graduate of Warwick Business School and former head of Accenture Financial Services and COO of Egypt’s Bank Of Alexandria, the company targets its services at the two billion people in the world who have jobs but no bank accounts.
Onfido, the UK’s fastest growing automated background checking company, announced it had raised $4.5 million from funds including Brightbridge Ventures – a £50 million fintech fund created by a former Google executive – to fuel its global expansion.
Co-founded by CEO Husayn Kassai, who studied at Oxford’s Saïd Business School, in the past year Onfido has signed up more than 400 clients – from SMEs to FTSE 100 companies – and has grown to carry out background checks in 28 countries.
Husayn says that the funding round will allow the company to further penetrate the US market, and to launch in more European countries later this year.
But critics have pointed out that the P2P lending market has been tested only in a low interest rate environment. They say that internet-based lending platforms are encouraging investors to offer risky financing to borrowers in return for potentially rich rewards.
However few would argue against the notion that innovation in financial services helps consumers and companies to access finance, and opens new markets to tap.
The financing round announced in San Francisco by SoFi is a signal that big business is beginning to think so too.
Student Reviews
Cultural experience
I have met the most competent and diverse batch in this school. These people not only thrive on their own but also makes sure that you are doing it with them. The professors will take your had and walk you through all milestones and make sure you are not left behind. I have found their extracurriculars extremely engaging. There was always a room to have social life after academic life. The only hindrance is the location of the school, it is slightly outside city and living in city is expensive.
Internationality and diversity of opportunities
About my programme I would say it is very international and flexible: we have the opportunity to choose exactly the courses we want. But at the same time, the frame of the campus is crucial in students' life and enable us to create friendships.
Great selection of people
While HEC's MBA is highly selective, I really enjoy the type of people HEC's selects to make sure everybody gets the best out of their MBA experience and networking opportunities. Not only it's an incredibly diverse pool of people (~60 nationalities) but most importantly they make sure to let in friendly empathic and curious people.
Best in France for Grande ecole
A prestigious business school. Languages are important. It is better to have a scientific baccalaureate with excellent grades in high school and good assessments.
The courses are well designed as per the latest trends and practicality of learning in stressed upon. Overall, a very good experience.
Diversity and quality of fellow students
Very international and interesting place to be and opens a lot of opportunities, however the administration is very french and facilities are subpar (gym, classrooms) meaning the academic affairs is pretty much useless and lastly we are graded on a curve which can create a toxic environment because of the competition. With that being said the pros outweighs the cons by far.
The quality of the teachers, the campus, the clubs
The school is very international indeed, we have courses with international students and share things with them within the extra academic life (in the social clubs especially). We have great career prospects if we prepare ourselves well - however, the global curriculum is still very finance-oriented, which is a pity for other interesting domains of the company world, which does not rely on finance only. The social clubs are good practice for the management and for now, are quite independent.
HEC Paris awaits you
HEC Paris is really a nice place to do a master's in business. Many classes are useful and interesting (corporate finance, financial accounting, contract law…), some are less - but the curriculum is to be reviewed in the year to come. Regarding the student life, it is incredible, with about 130 clubs, lots of great parties with even greater people. The Jouy campus offers a lot of opportunities to do sports, and you can breathe fresh air every day. HEC also helps a great deal to find an internship or a job.
A dream institute
Enrolling in the HEC MBA was by far the best decision I made for myself. The people and faculty are great, with lots of opportunities to meet people and expand your horizons. Very nice campus where I have had some good running sessions.
The alumni network is superb and very helpful. It also has a good support system for entrepreneurs. Would definitely recommend it!
Good choice for a career boost
The classes were extremely practical and relevant to the current challenges that businesses are facing. You have access to a wide range of professionals and good career prospects once you leave the university.
Cultural experience
I have met the most competent and diverse batch in this school. These people not only thrive on their own but also makes sure that you are doing it with them. The professors will take your had and walk you through all milestones and make sure you are not left behind. I have found their extracurriculars extremely engaging. There was always a room to have social life after academic life. The only hindrance is the location of the school, it is slightly outside city and living in city is expensive.
Internationality and diversity of opportunities
About my programme I would say it is very international and flexible: we have the opportunity to choose exactly the courses we want. But at the same time, the frame of the campus is crucial in students' life and enable us to create friendships.
Great selection of people
While HEC's MBA is highly selective, I really enjoy the type of people HEC's selects to make sure everybody gets the best out of their MBA experience and networking opportunities. Not only it's an incredibly diverse pool of people (~60 nationalities) but most importantly they make sure to let in friendly empathic and curious people.
Best in France for Grande ecole
A prestigious business school. Languages are important. It is better to have a scientific baccalaureate with excellent grades in high school and good assessments.
The courses are well designed as per the latest trends and practicality of learning in stressed upon. Overall, a very good experience.
Diversity and quality of fellow students
Very international and interesting place to be and opens a lot of opportunities, however the administration is very french and facilities are subpar (gym, classrooms) meaning the academic affairs is pretty much useless and lastly we are graded on a curve which can create a toxic environment because of the competition. With that being said the pros outweighs the cons by far.
The quality of the teachers, the campus, the clubs
The school is very international indeed, we have courses with international students and share things with them within the extra academic life (in the social clubs especially). We have great career prospects if we prepare ourselves well - however, the global curriculum is still very finance-oriented, which is a pity for other interesting domains of the company world, which does not rely on finance only. The social clubs are good practice for the management and for now, are quite independent.
HEC Paris awaits you
HEC Paris is really a nice place to do a master's in business. Many classes are useful and interesting (corporate finance, financial accounting, contract law…), some are less - but the curriculum is to be reviewed in the year to come. Regarding the student life, it is incredible, with about 130 clubs, lots of great parties with even greater people. The Jouy campus offers a lot of opportunities to do sports, and you can breathe fresh air every day. HEC also helps a great deal to find an internship or a job.
A dream institute
Enrolling in the HEC MBA was by far the best decision I made for myself. The people and faculty are great, with lots of opportunities to meet people and expand your horizons. Very nice campus where I have had some good running sessions.
The alumni network is superb and very helpful. It also has a good support system for entrepreneurs. Would definitely recommend it!
Good choice for a career boost
The classes were extremely practical and relevant to the current challenges that businesses are facing. You have access to a wide range of professionals and good career prospects once you leave the university.
Diverse
HEC, as an academic institution, serves as a launching pad for students to excel in their pursuits and careers. The diversity among students and professors is truly remarkable. The chance to attend seminars across five major continents is unparalleled. The exposure and relationships it fosters are invaluable.
Super diverse
It's a super diverse and fascinating environment with tons of chances, but the management is very French, and the facilities like the gym and classrooms are not great. This makes the academic side quite ineffective. Plus, we're graded on a curve, leading to a competitive and sometimes toxic atmosphere. Despite all that, the benefits definitely overshadow the drawbacks.
Surreal academic experience
What stood out to me about HEC was the direction and insight it offered on coding approaches. Prior to joining the program, I attempted self-learning, but I felt disoriented and lacked a starting point.HEC enabled me to grasp the basics of programming and provided support when I encountered obstacles. Without that guidance, I doubt I would have achieved the progress I have made to date.
Good security
HEC boasts a dedicated team of security personnel who undergo rigorous training to ensure the perpetual maintenance of tranquility and orderliness within the institution. Their unwavering efforts are directed towards fostering a sense of security among the student body, thereby enabling them to channel their energies predominantly towards their academic pursuits.
Innovative teaching method
I am thoroughly enjoying my time at HEC, from the innovative teaching methods to the welcoming campus environment, which is particularly supportive of international students. The extracurricular opportunities, such as sports and associations, are incredibly valuable. Additionally, the career services offered are exceptional. Overall, I find my experience at HEC to be truly enriching.
mim
HEC Paris has been a transformative experience for me. The caliber of the faculty, the diversity of the student body, and the global network it offers are unmatched. The curriculum is highly flexible, allowing students to tailor their learning experience to their career goals, and the focus on real-world application through case studies and consulting projects provides invaluable hands-on experience. The campus itself is beautiful, and the opportunities to engage with leading companies through internships, competitions, and networking events have been incredible. HEC truly prepares you to be a leader in today's complex business world. I couldn’t have asked for a better program to propel my career forward.
Unwavering enthusiasm
Here's the first paragraph:
I embarked on a journey to Paris, where HEC University welcomed me with open arms. As I stepped onto its prestigious campus, I was captivated by the infectious energy and innovative spirit that filled the air. The passionate faculty, industry experts, and fellow visionaries from around the globe shared their knowledge with unwavering enthusiasm."
Exceptional Experience
HEC offers an exceptional experience that I highly recommend. The small-town setting allows for a unique blend of academic rigor and community engagement. The peaceful campus and close-knit student body create a warm environment. Proactive engagement with professors yields valuable guidance. Friendships may blossom slowly, but persistence pays off. The city's beauty, scenic views, and diverse eateries near campus enrich the experience. University dining may not impress, but it's decent.
A Transformative Experience
Attending HEC Paris is an exceptional experience, combining world-class education with personal and professional growth opportunities.
The courses are incredibly engaging, delivered by highly qualified professionals who are specialists in their domains and often work or have work experience in prestigious companies. Far from being purely theoretical, the programs emphasise practical, hands-on learning, allowing students to dive deep into whichever area they want to specialise in. The variety of elective courses is remarkable - you can explore anything from advanced financial techniques to more cultural disciplines like politics, arts, and cinema.
Beyond academics, the student life at HEC is vibrant and dynamic. With over 50 student associations to join, there's something that will fit for everyone. Whether you are passionate about entrepreneurship, sports, arts, cuisine, social causes or anything else, HEC offers a space to explore and develop your interests.
The campus itself is well-equipped, providing students with everything they need for a comfortable and enriching experience. From excellent accommodations and sports facilities with professional coaching to a sprawling green area perfect for walking or relaxing, the environment is both stimulating and tranquil. And with Paris just a short bus ride away, students have the added benefit of easy access to one of the world's most beautiful cities.
However, what truly sets HEC apart is the unparalleled networking opportunities it provides. The school fosters connections through daily conferences in various fields of business (and not only business), networking events, site visits, and alumni cocktails. The alumni network is incredibly powerful, opening doors to countless opportunities and making it easier to connect with professionals in your dream field. The career center is another standout feature, offering invaluable support to help students navigate their career paths.
In conclusion, HEC Paris is much more than a top-tier European business school - it’s a transformative experience that equips you with the knowledge, skills, and connections to achieve your goals while also helping you discover what you’re truly passionate about.
Exceptional and esteemed institution
My time at HEC Paris was nothing short of incredible! The exceptional faculty, cutting-edge curriculum, and breathtaking campus exceeded my expectations. But what truly made my experience stand out was the diverse and dynamic community. I forged lasting bonds with people from all corners of the globe and gained invaluable insights from their unique perspectives.
The career prospects and alumni network that come with graduating from HEC Paris are unparalleled. I feel privileged to have been part of this esteemed institution and wholeheartedly recommend it to anyone seeking a top-tier business education.
My study Experience at HEC Bussiness School
Programs are generally tought in English and have Strong academic foundation and access to practical business knowledge.
Located in the center of Paris with good environment and professors.
But the administration is very slow and annoying.
And secondly if your financial situation is not strong than i don't think it will be a smart choice.
