TEN YEARS OF IMPACT Impact Report 2018
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TEN YEARS
OF IMPACT
Impac t Re p or t 2 0 18
2 3
CONTENT INTRODUCTION A NOTE FROM OUR CEO 4 ACKNOWLEDGEMENTS 7 COMPANY OVERVIEW 8 OUR IMPACT 10 YEARS OF IMPACT REVIEW 12 OUR THEORY OF SOCIAL CHANGE 14 IMPACT METRICS 18 STUDENT STORIES 23 PRODIGY FINANCE COMMUNITY QUOTES 34 CONCLUSION THE FUTURE OF PRODIGY FINANCE 36 APPENDIX
A LE T TER FROM
OUR CEO
Almost twelve years ago, in a track record or a proxy to the typical social stratification. value proposition to investors
2006, myself and two friends show, investors understood The urgency of ensuring when combined with personal
came up with the idea for the high level thesis, but were equal access for all women investment benefits.
Prodigy Finance while having unwilling to commit funding and men to affordable and
a beer on a street corner in at scale until the model was quality technical, vocational It is obvious that the success
Fontainebleau. proven (which takes years). and tertiary education is of the students we fund
What we knew back then, and Secondly we launched into a anchored in the United Nations and of Prodigy are closely
still stands true today, is that momentous time (in all the Sustainable Development interconnected. Our company
distribution of talent is global, wrong ways). Financial markets Goals which we are dedicated can only be successful if we
financial services are not. In the were in a turmoil not seen since to helping achieve. succeed in improving people’s
run up to INSEAD I saw many of the 1920’s. lives, allowing them to access
my fellow students not able to But students have also changed top quality jobs. In the last
take up their place because they Many of the investors we met us and the way we do business, years, we have been expanding
couldn’t access the required then advised us not to continue inspiring us to get better, faster the scope of our services
funding. I struggled myself to with the business as they and bigger in what we do. beyond pure finances to assist
pay for my masters and ended thought it would be impossible Over the past decade, Prodigy students in their journey from
up postponing it by a year. to prove out and scale. However Finance has lent almost USD postgrad to employment. It
That should not happen. we gained the support of a 500m to students coming from can happen that also the best
Prodigy Finance was born out of number of INSEAD alumni, who 120 nationalities and attending students lose their jobs or are
the belief that access to finance had been through the journey 328 different schools. Credit caught in personal troubles and
should be borderless and and understood the risk applications are done almost that’s when we come in with our
merit-based. Talented smart intuitively. While it took longer, 100% online, and most decisions career advisory services and
young people anywhere across the alumni p2p investment are made instantaneously. We leveraging our network with
the globe should be allowed allowed us to launch our pilot, have expanded our initial focus corporates. Acknowledging
to study at a top university of test our systems and show the beyond business schools to that many students especially
their choice and pursue their world that people with amazing include engineering, law and from Emerging Markets face
full potential. When we started, potential from around the public policy, and look forward many more barriers once
there was obviously a gap in the world would indeed repay with to continuing to expand the accepted at a university, we
market as banks were unable our model. disciplines we support in the have started working with
and unwilling to lend cross- future. companies like mobile phone
border to students pursuing a We all know about the power of operators, and housing agents
masters, especially if coming education on key life outcomes This would not have been to develop partnerships that
from emerging markets with such as employment and possible without all the can eventually be of value.
limited assets nor credit history. income. But there is more than committed investors that have support of our advisory Council and drive you will be able to
We wanted to fix that and just that. Education at a top subscribed to Prodigy bonds. We have decided to publish our for their guidance in helping to access the building blocks you
empower people to become university is also a pathway Investing in people and in first Impact Report to review redefine what matters most need to fulfil your potential.
what they wanted, irrespective to join a powerful network, postgraduate students was our first ten years and better to us and what our primary More and more investors will
of their nationalities, social consisting of people that will and still is our core proposition. understand the impact we impact objectives are. We are fund this potential through our
status or bank accounts. have successful careers and Over the years more and more are creating on people’s lives. honoured by the support of platform in the years to come,
take on leadership roles in the investors have joined, most The whole impact proposition preeminent experts in the enabling the next generation
The beginning of the journey private, public and non-profit of them looking in addition has always been part of our area of education and impact of dreamers, leaders and
was incredibly slow and difficult. sector – shaping the way for to a sound financial return, journey but we had not yet investments, namely Janine entrepreneurs across the world
Firstly because we were trying future generations. Quality a way of creating a social had a chance to deep dive and Haendel, Laura Hemrika, Salah- to thrive.
to do something that no one had education is a key component impact in the lives of future look in detail at how students Eddine Kandri, Fred Swaniker
done before – assess people’s of what allows talented people generations. Results from a perform a few years after their and Sherryl Kuhlman. Thank you for your support.
potential and credit-worthiness to be employable globally and recent Prodigy Finance survey studies, where they live and
in a non-traditional way across take on jobs anywhere they confirm that while investors whether their aspirations have We believe in a world in which
the world, and enable an would like, but also for people are primarily motivated by been realized. We have gone it won’t matter where you are
enforceable and fair contract coming from lower-income financial considerations ‘social through an interesting exercise born or live, or how wealthy
across 150 countries. Without households to break-out from impact’ becomes a very strong and are thankful to the valuable your family is, if you have talent
6 7
ACK NOW LEDGEMENT S
We would like to thank the distinguished members of our Impact Advisory Council
who provided input and valuable guidance in the creation of this report.
They have acted in their personal capacity and are at no time responsible for
any content, data nor reference provided.
JANINE HAENDEL SALAH-EDDINE KANDRI FRED SWANIKER
Chief Executive Officer, Global Head of Education, Founder,
Roger Federer Foundation International Finance Corporation African Leadership Academy
LAURA HEMRIKA SHERRYL KUHLMAN
Global Head Corporate Managing Director,
Citizenship & Foundations, Wharton Social Impact Initiative
Credit Suisse
NETWORKS
Prodigy Finance is a proud member of the Global
Impact Investing Network (GIIN).
Prodigy Finance is a registered IRIS user.
AUTHORS
PATRICK ELMER CARA GROBLER HANA HAILE-MARIAM
Senior Advisor Investor Relations Analyst Senior Relationship Manager
Talent is borderless, This report was written and designed by Prodigy Finance.
Special thanks to Julia Shaer, Ayoola Alabi, Tamsyn Lunt, Katie Schenk and Amlika Lal.
access to education
and financial services
ENQUIRIES
should be too. Media related inquiries regarding this report should be addressed
to Amlika Lal at media@prodigyfinance.com
C A ME RON S TE V E N S
CEO AND FOUNDER
PRODIGY FINANCE
8 9
COMPA N Y T HIS IS HOW
I T A LL WOR K S .
OV ERV IE W
. . .
INVESTORS
Investors subscribe to bonds
Prodigy Finance was started on numerous variables to provide financing to selected
students. Our funds are derived
by three INSEAD MBA such as projected earnings through a combination of alumni,
graduates who experienced rather than historical credit, universities, social impact
the difficulties of financing allowing the company to investors, family offices, banks and
an international degree first- provide funding to students other qualified private investors.
hand. In 2007, the company without a co-signer,
set out to solve this problem. guarantor, or collateral.
BONDS
The innovative platform Through our community Prodigy Finance has created
offers loans to international platform, alumni, impact different types of bonds including
postgraduate students investors, and other private school specific bonds (Yale Bond),
regional bonds (India Bond)
attending top universities. qualified entities are able to
offering diversification across
Prodigy Finance’s unique invest in tomorrow's leaders multiple courses at a variety of top
global credit model whilst earning a financial and universities globally. Each bond
assesses applicants based social return. has a separate pool of underlying
students and is listed on the Irish
Stock Exchange.
PRODIGY FINANCE
Prodigy Finance partners with top
universities and provides financing
to selected students based on its
proprietary scorecard.
UNIVERSITIES
Top universities globally rely
on Prodigy Finance to increase
diversity of talent across their
campuses. Prodigy currently
supports postgraduate business,
engineering, law and public
policy courses.
BORROWERS
Borrowers are future leaders
from over 120 countries across
the globe. Exceptional academic
and professional performances
secured each one an admit to a
top programme.
10 11
PRODIGY
FINANCE
IMPACT
12 13
HER E' S A LOOK AT
HOW FA R W E' V E COME.
TEN Y E A R S
OF IMPAC T
Bootstrapping, launch of Expansion of pilot Launch of 2nd Launch of bond programme:
p2p alumni pilot at INSEAD, at INSEAD university in Europe a global first in micro-bonds
angel investment for alumni/schools.
Set up of Cape Town Office.
Launch of first UK university.
In 2007, a team of INSEAD core business to help support to launch the world's first higher
graduates started a business in students throughout their education note in 2014, and our
a tiny London office – Prodigy studies and future employment. recent equity fundraise.
Finance, a company dedicated An in-house careers service,
to international postgraduate mentoring students and helping Needless to say, the impact these
students and helping them fund them find jobs by introducing students have and will have in
their education. The first students them to community members in their communities and the world,
who applied for loans had little, if relevant sectors. being able to study at some of Moved our London office Expanded loans Broadened UK loans.
any, options for financing, and this the best universities is profound. to Foubert’s Place across Europe 50+ nationalities funded
has remained the case for many We’ve spread the word about We’re excited to be a part of their
of our borrowers over the last ten our offering to key markets like story and look forward to helping
years. Since then, we’ve supported India and Brazil through strategic students for many years to come.
over 9,900 students across 328 regional partnerships, which
schools; which translates into speak to students locally and Take a look at our journey.
nearly $500 million in education in-country encouraging them
loans. to consider a top tier education
abroad that they may not have
It’s been written into our DNA to considered because of funding/
increase student accessibility to access constraints. The Prodigy
financial services, which is based Finance Ambassador programme
on merit, rather than geography has also created and maintained Launched U.S. operations Credit Suisse HEN Note + Moved into the New York office +
and socio-economic status. And, a diverse network of students, + 2 year loans. SERIES B funding led $50M investment bank debt facility
as the success of the company is at top universities around the 1st loan at Columbia by Balderton Capital
directly linked to the academic globe, who then in turn share with
and professional performance their networks and other incoming
of the students funded, it makes students.
the impact proposition a key
component of the business. While we started funding business
degrees, we have since expanded
Even though Prodigy Finance is a our offering to the fields of
private commercial company, a engineering, law and public policy,
number of community initiatives with significant milestones such
have grown alongside the as partnering with Credit Suisse
SERIES C funding led by Moved to Beak Street, Launched engineering, law
12 500 +
Index Ventures & RMIH London. and public policy, regional
$500M $200M investment bank debt facility. Over 130 employees partnerships, career services
across 4 continents. + ambassador program
14 15
OUR IMPAC T
OBJEC TI V ES
IMPAC T V I SION IMPAC T MI S SION
Prodigy Finance is the #1 financial platform enabling a Providing talent with a disadvantaged socio-economic background
new generation of talent to unlock their potential anywhere with the ability to access quality higher education through financial
across the world. support and create a new generation of global leaders.
YOUNG SOCIAL GLOBAL SOCIETAL ACCESS TO
IMPAC T LEADERS CAPITAL JOB MARKET TRANSFORMATION EDUCATION
OBJEC T I V E S Increase number of Extend the social network Increase number of Increase number of Increase number of young
young leaders and of young talents with a young citizens with a young citizens with a talents from emerging
entrepreneurs globally disadvantaged socio- disadvantaged socio- disadvantaged socio- markets able to access
that are more diverse. economic background economic background economic background educational opportunities
and provide access to having access and transforming their and attend high quality
elite global networks of advantages to a societies back at home. universities.
influence (‘social capital’). competitive global
job market.
/16
16 / 17THEORY OF
SOCI A L CH A NGE
Prodigy Finance provides access to cross-border financial services
for young talent with disadvantaged socio-economic backgrounds,
facilitating the creation of global leaders and entrepreneurs.
INPUT OUTPUT OUTCOME SHORT TERM
Students graduate from a global university.
Access longstanding and
influential networks globally.
Universities increase diversity.
MEDIUM TERM
Former students progress their
career and find and retain preferred
jobs in the market.
Former students access elite global
networks of influence.
Former students send money
FUNDING ACCESS TO LOANS & EDUCATION
or return home.
Funding for students to cover The best talent get
tuition and study-related fees. access to loans and are able
to attend top universities LONG TERM
SUPPORT around the globe.
Dedicated support Former students become global leaders
throughout studies. and contribute to the social and economic
development of communities and
ADVISORY countries they reside in.
Career advisory services.
/ 18 /
18 19IMPAC T
ME TR ICS
GLOBAL JOB SOCIETAL ACCESS TO IRIS* GLOBAL JOB SOCIETAL ACCESS TO IRIS*
METRIC YOUNG LEADERS SOCIAL CAPITAL METRIC YOUNG LEADERS SOCIAL CAPITAL
MARKET TRANSFORMATION EDUCATION ALIGNED MARKET TRANSFORMATION EDUCATION ALIGNED
Percentage of students
Total number of students funded
in a senior leadership
(with breakdown by nationality)
position post-study
Total number of countries Number of (co)founders of a
where Prodigy Finance can business post-study (including
support borrowers breakdown of emerging markets)
Total number of schools
Number of jobs created by
supported (with breakdown
co-founders and founder.
by country)
Percentage of student Percentage of students who
borrowers who graduate believe postgraduate degree
has significantly increased their
ability to obtain and retain a job
domestically
Percentage of students
from emerging markets
Percentage of students who
believe postgraduate degree
has significantly increased their
Percentage of female students ability to obtain and retain a job
internationally
Percentage of students who
Percentage increase of salary
are part of the first generation
post-study (broken down by
of their family to attend
percent)
graduate school
Percentage of former students
Percentage of students
who support their family outside
who have dependants
their country of residence (or
(children/spouses)
send remittances)
Percentage of students earning Percentage of former students
less than $15,000 pre study who have lived in more than 1
(with geographic breakdown) country post graduation
Percentage of students that Percentage of former students
intend to return to their that return to their country of
country of origin within origin within 2-5 years post-study
2-5 years post-study
Percentage of former students
Employment by industry
interested in investing in Prodigy
post-study
Finance students in the future
IRIS is managed by the Global Impact Investing Network and is the catalog of generally-accepted performance metrics.
*
IRIS alignment footnotes found in appendix
20 21IMPAC T
ME TR ICS *
STUDENTS FUNDED | 9900+ PRODIGY FINANCE CAN LEND BORROWERS WHO STUDENTS WHO RETURN TO STUDENTS WHO HAVE LIVED EMPLOYMENT BY
MALE 71% | FEMALE 29% TO STUDENTS FROM OVER GRADUATE | 99.77% THEIR HOME COUNTRY IN MORE THAN ONE COUNTRY INDUSTRY POST-STUDY
150 COUNTRIES POST-STUDY | OVER 60% POST-STUDY | 51% (see appendix)
15K
PERCENTAGE INCREASE OF STUDENTS WHO BELIEVE STUDENTS WHO BELIEVE EMERGING MARKET (CO)FOUNDERS OF A BUSINESS STUDENTS FUNDED
SALARY POST-STUDY: POSTGRADUATE DEGREE POSTGRADUATE DEGREE STUDENTS | 80% POST-STUDY | 16% EARNING LESS THAN
STATE SALARY HAS INCREASED ABILITY TO HAS INCREASED ABILITY NUMBER OF JOBS CREATED $15K PRE-STUDY | 20%
HAS INCREASED | 72% OBTAIN AND RETAIN JOB TO OBTAIN OR RETAIN JOB BY (CO)FOUNDERS
STATE SALARY HAS INCREASED DOMESTICALLY | 69% INTERNATIONALLY | 77% (see appendix)
>50% POST-STUDY | 44%
FORMER STUDENTS STUDENTS WHO ARE FIRST STUDENTS WHO BELIEVE THEIR STUDENTS SUPPORTING STUDENTS WITH STUDENTS WHO DEPENDED
INTERESTED IN INVESTING IN GENERATION TO ATTEND POSTGRADUATE DEGREE HAS FAMILY OUTSIDE COUNTRY OF DEPENDANTS | 16% ON PRODIGY FINANCE TO
PRODIGY IN THE FUTURE | 60% GRADUATE SCHOOL | 59% ENABLED THEM TO PURSUE RESIDENCE | 31% FUND THEIR DEGREE | 89%
THEIR DREAM CAREER | 72%
Metrics are as at January 2018.
*
Please refer to appendix.
22 23STUDENT STORIES
The impact a postgraduate
degree can have is far-reaching.
Here are just a few stories from
five of our borrowers.
24 25RUHI DANG When you meet Ruhi, it’s pretty clear that her curiosity and grit mean that she’s one to watch. U n iv er s i t y o f P enns y lv ania, Wh a rton R UHI'S S TORY As the youngest of two sisters, develop her tech and business loan quickly and was off to Ruhi always knew she could go skills, which she felt were the Pennsylvania to study at Wharton. far. Her older sister had already key to her future success. Ruhi is now coming to the end left their small town in India to She’d seen how her friends of her time at Wharton. She has do an MBA in-country, but she who went on to start their own used her MBA to venture out and had desires to study abroad. businesses struggled to make learn about new fields, which Her sister’s journey to her MBA crucial management decisions she has really enjoyed. She has meant that Ruhi was aware due to lack of business acumen now secured a post-MBA job that she’d face many obstacles. and felt that the MBA was the at Amazon, where she will be Nevertheless, Ruhi’s dream to best way of preventing this from working in product and has a work for a tech company meant happening to her. message for the investors who I would want you to see the impact you’ve had on me. I would want you to be proud of what your funding has achieved in the lives of students like me. she had to find another way. Determined to pursue her have made her dreams come Ruhi studied engineering at international MBA, Ruhi was true: "I would want you to see the undergraduate level and busy researching financing the impact you’ve had on me. I went on to work in sales and options when she heard about would want you to be proud of trading at Deutsche Bank. She Prodigy Finance visiting Mumbai. what your funding has achieved decided to do her MBA to further Ruhi secured a Prodigy Finance in the lives of students like me." 26 27
A NDRES'
STO RY
Andres left his MBA with a strong understanding of how
to run a business "for good", a great network of passionate
entrepreneurs, and a truly open mind.
Andres is an engineer at heart The use of blockchain was so
with a passion for making forward-thinking that Andres’s
the world a better place. startup received attention
Originally from Mexico, Andres’s from the Spanish government.
family has a strong history in Ultimately, Andres and his partner
studying technical and business received a few offers to utilise
subjects (both of his parents have their technology, none of which
masters degrees). For Andres, adhered to the original importance
this broad approach to education of social impact. Andres rejected
has enabled him to really make a these offers on ethical grounds:
contribution to the causes he is “The whole thing just made me
most passionate about, such as uncomfortable.”
digital activism.
A man of strong principles, Andres
Andres plotted his path towards was not disappointed by the
a social impact role quite demise of his startup. Instead,
deliberately. After working for he left his MBA with a strong
Telefonica for a few years, he understanding of how to run a
decided to do an MBA to expand business ‘for good’, a great network
his business acumen. He applied of passionate entrepreneurs (over
to study at IE due to the strong half of Andres’s class worked
entrepreneurial focus of the on their own startups on the
course. side during their MBAs), and a
truly open mind. "I haven’t really
Once in Spain, Andres began to planned my next steps – things
expand his network and, thanks have just fallen in to place." This
to a classmate, soon became attitude meant that when a job
ANDRES
passionate about a little-known offer came up at the EFF (a non-
social problem: patients dying due profit digital privacy network), an
to taking counterfeit medication, organisation Andres has followed
ARRIETA
which is notoriously difficult to for years, he took the opportunity
detect. and moved to San Francisco.
His job focuses on civil liberties in
Drawing on his technical the digital world and builds on his
An IE graduate with startup experience background and passion for the past experience.
digital world, Andres joined his
and a strong affinity for social impact. classmate, using blockchain to Andres doesn’t know what his next
identify counterfeit medication steps will be but, wherever he is,
and ultimately prevent he will be sure to use his skillset to
I E B us i n es s S cho o l unnecessary deaths. make the world a better place.
28 29ADITHYAN KARUNAKARAN
An engineering whiz with a long-term goal
of transitioning into strategy.
D art m o u t h C o l l ege, Th ayer Sch o o l o f En gi n eeri n g
A DI TH Y A N'S
STO RY
As a young professional, Adithyan his journey. His Masters in
has big ambitions for the future. Engineering Management has
Prodigy Finance has played an given him exposure to business As a young early-careers
intrinsic part in helping him concepts within the context professional, Adithyan has
to start his journey towards a of his previous academic
brighter future. and professional experience. big ambitions for the future.
Prodigy Finance has played
Adithyan’s journey began in Highly driven, Adithyan is
India. He was born in Chennai currently studying intensely an intrinsic part in helping
and raised all across the country for finals and will use the him to start his journey
due to his Dad working in upcoming holiday period to
different cities throughout his secure internships to help him towards a brighter future.
childhood. apply what he’s learnt during his
Masters and to hopefully secure
He studied engineering at an a more permanent job. Adithyan Adithyan’s journey began
undergraduate level and then hopes to stay and work for a
went on to work in marketing few years to gather more work
in India. He was born in
for a manufacturing company. experience before pursuing Chennai and raised all
After a few years, Adithyan an MBA.
realised he was ready for his across the country due
next challenge and planned a Eventually, Adithyan hopes to to his Dad working in
career switch from engineering return home to India and work at
to business. a tech company. He also wants to different cities throughout
invest in Prodigy Finance so other his childhood.
Adithyan found the perfect students, too, have the chance
course to start him off on to realise their dreams.
30 31VIGNESH BALIGA
A passionate brand champion now
fulfilling his dream of working in Germany.
M a n nhei m B us ines s S cho o l
VIGNESH 'S
S TOR Y
Vignesh is passionate about positions. His passion for
Prodigy Finance because he wants engineering and machines soon
to help others pursue their dreams inspired him to look for options in The community culture
in the same way he has and help Germany. is something that really
the community grow.
After finding Mannheim, he strengthens the company's
Vignesh has had a passion for applied, was accepted, and was vision and this should be
machines from a very young age one step closer towards his
and made an obvious choice for dream of studying and working maintained however large
an Under graduation in Mechanical in a country renowned for its the organisation grows.
Engineering. engineering expertise. The only
obstacle standing in the way
Soon after completing his of Vignesh reaching his dream
undergraduate degree, Vignesh was how to fund it. He initially up to a professionally managed
started looking towards new approached local banks in India organisation.
horizons in the industrial space and and was put off by the high interest The community culture is
planned his career accordingly. rates, currency fluctuations, and something that really strengthens
required collateral. the company's vision and this
His first job was in Business should be maintained however
Development, Sales and Project Vignesh has now come a full circle: large the organisation grows."
Management. Once there, Vignesh he discovered Prodigy Finance
realised that he most enjoyed thanks to a series of info sessions Vignesh is now fulfilling his dream
technical sales and project in Bangalore, India. During his of working in Germany and couldn’t
management. Not only did he recent trip back home, Vignesh be happier. "It has always been a
enjoy it – he was good at it and volunteered his personal time to dream for me to work in the country
soon began to climb the ladder in speak to other potential applicants where the latest developments in
his organisation. about his experience obtaining engineering take place." He plans to
a Prodigy Finance loan to study return to India in three to five years,
As an ambitious young man, abroad. "I have seen Prodigy as an where he will apply the knowledge
Vignesh soon realised that not organisation that has grown leaps he has learned abroad and continue
having an MBA was preventing him and bounds over the past year; to enable young professionals to
from reaching senior management one that has moved from a start- reach their dreams.
32 33SI DDA RTH 'S
STO RY
Ultimately, experiencing the French culture would become
one of the most rewarding aspects of Siddarth’s MBA.
Born and raised in Delhi, India, the French culture would become
Siddarth moved to the USA to one of the most rewarding aspects
complete his undergraduate of Siddarth’s MBA because it
degree at the age of 18. Leaving taught him how to take work
India so young was not necessarily and pleasure seriously. ‘France
the ‘done thing’ and, by his takes pleasure very seriously and
admission, he wouldn't have it’s really helped me to find my
considered doing this if it hadn’t boundaries.’
been for the unwavering support
of his parents. Once he decided on an MBA,
it became clear that financing
He studied engineering at Georgia it would be harder than he’d
Tech. Afterwards, Siddarth moved previously thought.
to New York to work for Deloitte
as a Human Capital Consultant. Despite having lived in the USA for
He enjoyed his work but began to several years, he did not qualify
realise that he craved stability in for the Federal Loan Scheme.
the workplace. As a consultant, his His unusual step of studying his
travel schedule was heavy, and he undergraduate degree abroad
soon found he was forming better also meant that he wasn’t able to
relationships with the companies rely on his family for additional
he was consulting for rather support. He came across Prodigy
than his immediate colleagues. Finance online and applied for
Siddarth also grew tired of the a loan. Siddharth so enjoyed his
relentless pace of working life in initial introduction that he decided
New York and looked towards new to become an Ambassador for the
pastures. brand.
SIDDARTH Europe attracted Siddarth for
several reasons. After considering
His MBA has been a rewarding
professional and personal
GURNANI
a few schools in the UK and experience and he’s excited to
France, Siddarth settled on HEC use his new knowledge to build a
for its programme structure, cost successful life for himself. He is due
and length (it was prestigious, to move to London with his wife in
International high-flyer with dreams of reasonably priced and neither March 2018, when he'll start work
too short or too long). He was at American Express, he hopes to
becoming a Prodigy Finance investor. also excited about improving his work his way up the ranks within
French and really challenging a few years. He also harbours
himself to adapt to another another important ambition: to
HEC Pa ris culture. Ultimately, experiencing become a Prodigy Finance investor.
34 35THE Wharton’s community is shaped by our OLIVIER ROUSSET
COMMUNIT Y
H E A D I M PA C T I N V E S T M E N T S ,
students. Access to postgraduate financing CREDIT SUISSE
for international students has helped
to maintain the diversity of our student Credit Suisse has been partnering with
Prodigy Finance since 2013 in response to
body, which is at the core of creating a
growing interest in thematic investments in
. . . productive learning environment and
education. We found that our clients valued
exceptional alumni network. For over the opportunity to invest in talented and
10 years, Prodigy Finance has provided yet less privileged students in their effort
international students with the options to gain access to top-tier higher education
Access to Prodigy Finance that they need to pursue their dreams of and consequently improve their quality
CRISTIANA SAUDELLA higher education. They play an important of life. Together with Prodigy Finance, we
funding is very important to London
SENIOR MARKETING MANAGER role in making higher education designed an innovative approach to bring
Business School, and to our students. MBA AND DBA
accessible to more students. our clients to students in need of financing
CR ANFIELD UNIVER SIT Y
With students from more than 100 SCHOOL OF MANAGEMENT support. What started as our first-ever
S HE R RY L K UHLM A N , impact investing note in education, became
countries, embracing diversity is at MANAGING DIREC TOR
A Cranfield MBA, for many of our a programme of multiple investments
the heart of everything we do. students, is a huge personal but also
W H A R T O N S O C I A L I M PA C T I N I T I AT I V E
supporting hundreds of top students in their
We recruit top global talent to our financial commitment. Prodigy Finance pursuit for education. As a solid enterprise
has removed the countless difficulties actively seeking and monitoring its social
programmes, and we support our
prospective students had encountered in the It will be 10 years in 2018 since Prodigy impact, we consider Prodigy Finance as a
students' journeys to become the past when trying to finance their studies. established an international loan unique and best-in-class impact partner.
world's future business leaders. They have offered our students peace of programme for INSEAD students. We
Prodigy Finance's innovative and mind and a practical solution to student are proud that INSEAD alumni were the
finance. This has guaranteed not only that founders of the scheme that is now offered
community-based approach to We consider Prodigy Finance as a
more and more talented individuals could at over a hundred schools worldwide. They
unique and best-in-class impact partner.
borderless student loans provides access our world-leading international were the pioneers of community funding
degrees, but that the latter could continue and the notion of community remains at
the financial support many of our
to be as culturally diverse as possible. the heart of the programme where alumni Rancilio Cube, a family office and impact
students need to start their journeys. fund future students. Prodigy facilitates investor in Milan, subscribes to several
access to education making attendance
HELEN FOLEY Prodigy bonds because it's simply the
to the INSEAD MBA possible and thus
A S S O C I AT E D I R E C T O R paradigm of our investing strategy: to
FINANCIAL AID making dreams come true for many. It is
JAYNE GLASS help people to develop and, at the same
LONDON BUSINESS SCHOOL challenging to obtain an educational loan in
PRODIGY FINANCE INVESTOR time, to get a sustainable, long-term
many countries as collateral and guarantors
I wanted to invest a small sum of money in are required. It is great to have a source of return on investment.
The Prodigy Finance solution is an asset other than property but I did not funding where none of these are necessary.
revolutionary because it really increases feel comfortable investing in companies that We appreciate having a solid loan offering We are a family and we consider all the
the depth and access to higher education I had no connection to, or which I could not that goes together with great customer students we support our international,
for international students. It is a true be sure were acting ethically in their business service and care. studying, travelling, "big" family.
example of a win/win situation. activities and decisions. I liked the idea of a
IRINA SCHNEIDER-MAUNOURY
We love Prodigy!
‘community investment’ that supports real A S S O C I AT E D I R E C T O R , F I N A N C I A L A I D -
V E R E N A BUT T LUCA R ANCILIO
people doing something that will benefit their DEGREE PROGR AMMES INSE AD
PRODIGY FINANCE INVESTOR CO - FOUNDER OF R ANCILIO CUBE
careers and long-term futures. F A M I LY O F F I C E
36 37LOOK ING A HE A D
. . .
A Q & A W I T H PRODIG Y FIN A NCE
CHIEF OF S TA FF, CHLOË F ODEN
INCREASED GLOBAL MOBILITY AND HOW DO YOU SEE THE EMERGENCE HOW CAN PRODIGY FINANCE FURTHER WHAT ARE YOU MOST EXCITED ABOUT
FINTECH ARE DISRUPTING TRADITIONAL OF TECHNOLOGY - LIKE FOR EXAMPLE CREATE IMPACT, TARGETING BASE OF THE REGARDING THE FUTURE OF PRODIGY
LENDING MARKETS. DO YOU SEE BLOCKCHAIN AND DIGITAL CURRENCIES PYRAMID POPULATIONS AND DO FINANCE?
OPPORTUNITIES FOR PRODIGY FINANCE EFFECTING PRODIGY FINANCE IN THE YOU PLAN TO?
TO PROVIDE FINANCING TO PEOPLE FUTURE? We set out to solve a very real problem in
TRAVELING CROSS-BORDER OUTSIDE OF At the moment, we rely on sourcing investors the world – credit available for postgraduate
THE EDUCATION SPACE IN THE FUTURE? At Prodigy Finance, we’re a product and who are driven by social impact rather than education is localised yet talent is global.
technology-led organisation. This means we’re financial return. However, we’re always looking
Prodigy Finance’s borderless model disrupts constantly looking at new technologies and to increase access to quality education and have Our innovative approach is exciting, for students
conventional thinking around credit; our assessing how it could fit in with our business discussed various ideas on driving momentum. we’ve helped to date, future students coming
proprietary approach in postgraduate financing model, and address our customers’ needs or our way, their families, and investors. Creating
could be transferable to other individuals who challenges (both current and future). For example, decreasing interest rates for the opportunity to invest in future generations,
look similar to our current borrower set. There students from less developed countries who over commodities, and still earn a return has an
are over 250 million people living outside their An example of an emerging technology that go home immediately after their studies. incredible human impact. Every dollar invested,
home country and over 60 million of these are would be highly-compatible with our offering is These students could work with the charitable and every dollar funded has a unique personal
tertiary educated. These people face the same smart contracts – this is relevant and value-add foundations or development banks who story to tell.
barriers as our student borrowers in that credit, for both students and investors coming to our have invested through our platform, and are
and the extension of it, is localised. platform. organisations willing to take a lower financial We need more solutions aimed at improving
yield in return for employees with a relevant the world we live in, rather than consumerism.
An example could be a female lawyer from India postgraduate degree. I hope our business model inspires others
moving to the US for a career opportunity. Once considering social entrepreneurship, it’s an
in the US, she’s going to have to pay up to a Another idea is to focus on gender equality example of how smarts and hearts can solve
year’s rent in advance for housing; she wouldn’t to increase female postgraduate education real issues in the world. In fact, some of our
have access to a local credit card, or one that enrolment rates, in particular for STEM degrees. graduated borrowers have even started
links to her current earnings; she’d struggle to their own businesses focused on people and
get a post-paid mobile contract; and wouldn’t There are also many new higher education communities. What’s not to get excited about?!
immediately qualify for a personal or short Creating the opportunity to invest in models coming into play on the African
term loan that would be feasible to repay – all future generations, over commodities, continent, which could change how it is
because of a lack of US credit history – even delivered across the region. We’d be very open
though she is a super-prime borrower with a
and still earn a return has an incredible to partnership opportunities that help level the
strong earning potential. human impact. Every dollar invested, education playing field.
and every dollar funded has a unique
With some tweaks to our model and
process we could help to solve this problem personal story to tell.
for similar individuals.
38 39M A N AGEMENT BOA RD OF
TE A M DIR EC TOR S
. . . . . .
CAMERON STEVENS, MBA
FOUNDER AND CEO
ALASTAIR HOPS
C H I E F F I N A N C I A L O FF I C E R
NEIL RIMER M A IN SH A R EHOLDER S
Co-founder and Partner at Index E XC LU D I N G F O U N D I N G T E A M
Co-founder for staffing firm to upskill 15+ years experience in financial services. Ventures. Neil has been involved with
the unemployed in South Africa and a Oversaw finances for a London-based tech flagship investments during his 21
technology think tank in South East Asia. accessories startup that turned into a global years at Index, including Betfair, Skype,
Firm successfully listed a client techology brand, with outlets in 25 countries. B.Sc. Funding Circle, Deliveroo and Supercell. INDEX VENTURES
company on the Malaysian Stock Exchange. Comp. Sci. and Chartered Accountant (SA). Most recognised global investor in
technology based in Europe - invested in
TIM BUNTING over 160 companies across 24 countries.
SIMON WARD PIERRE DECOTE General Partner at Balderton Capital,
C H I E F T E C H N O LO G Y O FF I C E R C H I E F R I S K O FF I C E R specialising in fintech and new financial
15+ years experience working in high 16+ years experience in analytics and services models. Previously at Goldman
transactional e-commerce businesses credit risk across a range of consumer Sachs as Global Head of Capital Markets, BALDERTON CAPITAL
supporting the growth from startup to and corporate financial products in and then Vice Chairman, International. A leading VC firm currently managing
acquisition across multiple jurisdictions various geographies and macro-economic $2.3bn in committed venture capital.
globally. B.Sc. Engineering. environments. Ms. Finance.
ALAN MORGAN
Financial services specialist, having
CHLOË FODEN OLIVER AIKENS, CFA previously headed up McKinsey & DAVID STEVENS
C H I E F O F S TA FF H E A D O F C A P I TA L M A R K E T S Co.’s Financial Services Practices in Co-founder and CEO of Admiral Group
EMEA. Co-founded MMC Ventures (FTSE100 – £5.9bn market cap) and Founding
10+ years experience working in retail 13+ years experience in structured to apply his knowledge to startup
banking and strategy consulting across finance and debt capital markets at Trustee of the Waterloo Foundation
and growth stage ventures.
a myriad of industries and international Morgan Stanley, Nomura and major
markets. Focused on business models, international law firms. M.A. Law (Hons),
growth assessments and operating model CFA Charterholder.
EDWARD WRAY MICHAEL BUTT
designs. B.Bus.Sci. Chairman of Axis Capital;
Betfair co-founder and its first Chief
a leading insurance and reinsurance
Executive. Betfair floated on the London
group with a market cap of $6.3bn.
Stock Exchange in 2010, valued at £1.4bn.
RICARDO FERNANDEZ NICO BARNARD
Twice named Ernst & Young’s Entrepreneur
C H I E F S A L E S & M A R K E T I N G O FF I C E R H E A D O F O P E R AT I O N S
of the Year. Currently holds directorships
10+ years strategy consulting experience 12+ years financial services experience at Funding Circle, LMAX Limited, Property MICHAEL ULLMANN
with PwC, Accenture, BCG and KPMG. Serial working with blue chip companies, and 10 Partner, and is a Trustee of Nesta and The Serial entrepreneur and angel investor,
entrepreneur with several successful exits. years in consulting having established his own Mix. He is an active angel investor. having invested in more than 40 companies
B.Sc. Eng. (Honors) and MBA from INSEAD. strategic consulting company. across a range of sectors.
DR. ANDY PHILLIPPS
NICOLE DE RAUVILLE
Serial entrepreneur; previously
L E G A L CO U N S E L
Founder and CEO of Active Hotels DR. EGBERT P. WILLIAM
17+ years legal experience with 9 years at (sold to Priceline for $161m). Chairman of Ken Private Equity; previously
an international law firm; in the corporate Board of Management of Cologne
practice, covering equity capital markets, Reinsurance Group (world’s oldest
private equity and public takeovers. reinsurance group, in 150 countries).
41APPENDIX
General Comments
IRIS Alignment
Methodology
42 43GENER A L COMMENT S
. . .
IMPAC T ME T R IC S A S AT J A NUA RY 2 018
(R EFER TO TA B LE B ELOW )
METRIC CO M M E N TA R Y METRIC C O M M E N TA RY
Prodigy Fina nce I mpa ct Sur vey :
Total numb er of s tudents f unded, brea k d o w n b y These are the total amounts of unique B orrowers post -st udy.
1
m ale and fema l e. students funded by Prodigy Finance.
% I ndust ry Post -st udy
18% Consult ing
Prod igy Finan ce ca n l end to borrow ers T h i s i s a c c o r d i n g t o t h e P r o d i g y F i n a n c e r e g u l at ory 18% O t her
2
fr om over 150 countri es . and enforcement model. 16% Fina ncia ls
15% I nfo T echnology
T o t a l s t u d e n t s f u n d e d e x c l u d i n g s t u d e n t s P r o digy 6% I ndust ria ls
3 Borr ower s wh o gra dua te. Finance is made aware of that 5% Consumer Discret ionar y
12 Empl oyme nt by i ndus tr y pos t-s tudy.
do not complete their studies. 4% E nergy
4% Hea lt hca re
Taken from the average percentage increase as 3% Socia l Sect or (E nt erpr i se, N GO’ s, etc)
4 Per c entag e Increa s e of P os t- Study Sa l a ry. p e r t h e F i n a n c i a l T i m e s G l o b a l M BA Ra n k i n g 20 18 3% T elecommunica t ion Ser vi ces
Report. 3% Consumer St a ples
2% R ea l E st a t e
1% Ma t eria ls
Per c entag e of s tudents w ho bel i ev e pos t-
P r o d i g y F i n a n c e Im p a c t S u r v e y : 1% G overnment
5 gr ad uate studi es ha s i ncrea s ed thei r a bi lit y t o
Bo r r o w e r s p o s t -s t u d y . 1% U t ilit ies
ob tain/r etain a j ob dom es ti ca l l y.
1% O t her
Per c entag e of s tudents w ho bel i ev e pos t- A s per t he Prodigy Fina nce pl atfor m adj usted to
P r o d i g y F i n a n c e Im p a c t S u r v e y : 13 P e r ce nta g e of e me r g i ng ma r ke t s tude nts .
6 gr ad uate studi es ha s i ncrea s ed thei r a bi lit y t o ref lect U SD equiva lent vol ume per nati onal i ty .
Bo r r o w e r s p o s t -s t u d y .
ob tain/r etain a j ob i nterna ti ona l l y.
Prodigy Fina nce I mpa ct Sur vey :
B orrowers post -st udy.
Former stud ents i nteres ted i n i nv es ti ng P r o d i g y F i n a n c e Im p a c t S u r v e y : How ma ny people does t he busi ness empl oy ?
7
in Pr od ig y Fina nce i n the f uture. Bo r r o w e r s p o s t -s t u d y . Numbe r of ( co) -founde r s of a bus i ne s s pos t-s tudy 11% 1 - 10 employees
14
a nd numbe r of j obs cr e a te d by ( co) -founde r . 3% 10 - 25 employees
1% 25 - 50 employees
Per c entag e of s tudents w ho a re pa rt of th e 1 s t
P r o d i g y F i n a n c e P r e -s t u d y S u r v e y : 0% 50 - 75 employees
8 gener ation in thei r f a m i l y to a ttend gra du a t e
Bo r r o w e r s a t a p p l i c a t i o n . 1% 500+ employees
sc hool.
Percent a ge of T ot a l Disbu r sed (USD) that ear n l ess
Per c entag e who bel i ev e thei r pos t- gra dua t e P e r ce nta g e of s tude nts e a r ni ng l e s s tha n $ 1 5 K
P r o d i g y F i n a n c e Im p a c t S u r v e y : 15 t ha n $15,000 a s per t heir appl i cati on
9 d egr ee has en a bl ed them to purs ue pr e -s tudy.
Bo r r o w e r s p o s t -s t u d y . pre-st udy.
their d r eam ca reer.
P e r ce nta g e of s tude nts s uppor ti ng Prodigy Fina nce I mpa ct Sur vey :
16
fa mi l y outs i de countr y of r e s i de nce . B orrowers post -st udy.
Per c entag e of s tudents w ho return to the ir Student application vs collections
10
c ountr y of or i gi n w i thi n 2- 5 yea rs pos t- s tu d y . data of students upon repayment. Prodigy Fina nce Pre-st udy Sur vey :
17 P e r ce nta g e of s tude nts w i th de pe nde nts .
B orrowers a t a pplica t ion.
Per c entag e of s tudents w ho i ntend to ret u r n t o Prodigy Fina nce Pre-st udy Sur vey :
P r o d i g y F i n a n c e Im p a c t S u r v e y : P e r ce nta g e w ho de pe nde d on
11 their c ountr y of ori gi n w i thi n 2- 5 yea rs po s t - 18 B orrowers a t a pplica t ion and Pr odi gy F i nance Im-
Bo r r o w e r s p o s t -s t u d y . P r odi g y F i na nce to fund the i r de g r e e .
stud y. pa ct Survey:B orrowers pos t-study .
45IR IS A LIGNMENT ME THODOLOG Y
. . . . . .
METRIC IRIS ALIGNMENT C O M M E N TA RY PRODIG Y FIN A NCE U T ILIZED F OUR
M A IN DATA S OURCE S IN T HE CR E AT I ON
C l i e n t r e f e r s t o s t u d e n t , b r o k e n down
To t a l s t u d e n t s f u n d e d . PI2822 OF T HI S R EP OR T:
by nationality.
T o t al numb er of c ountri es 1. Prodigy Finance Pre-study Survey as at January 2018: This survey is taken by all borrowers
wh ere Prod igy c an s upport PD2587
at the latest stage of their loan application. This data is captured on an ongoing basis. The
bo rrowers.
survey tracks a number of variables, many of which were highlighted in this report.
S e r v i c e r e f e r s t o l o a n s f o r i n t e r na t iona l
T o t al numb er of s chool s postgraduate students
P I 2 5 7 5 , P D 2587
su pp or ted . Location refers to location of
2. Prodigy Finance Impact Survey - Borrowers post-study December 2017: The survey was
supported universities.
introduced in October 2017 as an initiative to gain access to valuable data from borrowers
Percentage of stu dent M e t r i c i s s p e c i f i c a l l y t r a c k i n g s t u dent
PI4924 post-study. The survey achieved a 10% response rate from borrowers currently in
bo rrowers who g ra dua te. borrowers who graduate.
repayment and beyond. The survey tracks a number of variables, many of which were
highlighted in this report.
P e r c e n t a g e , n o t a b s o l u t e n u m b er is
Percentage of fem a l e s tudents . PI1081
being tracked here.
3. Prodigy Finance Internal Database data as at January 2018: Data is captured on an on-going
Percentage of stu dents w ho a re
Ac c e s s r e f e r r i n g t o p e r c e n t a g e of
part of the first ge nera ti on of
PI2822 s t u d e n t ’ s p a r t o f t h e f i r s t g e n e r at ion of
basis, based on student applications and repayment data. Metrics are calculated based on
t h e ir fam ily to att end gra dua te
t h e i r f a m i l y t o a t t e n d g r a d u a t e s chool. cumulative data.
sch ool.
Percentage of stu dents ea rni ng T a k e n t o g e t h e r t h e s e m e t r i c s r ef er t o
less than $15,000 pre s tudy P D 7 9 9 3 , PD 2587, P I4060 p e r c e n t a g e o f s t u d e n t s e a r n i n g less 4. Repayment data as at January 2018: The source captures numerous performance and
(wit h geog rap hic brea k dow n) . t h a n $15, 000 p r e -s t u d y .
applicant data points once students enter repayment.
Percentage of stu dents i n a
Re f e r s s p e c i f i c a l l y t o s e n i o r l e a dership
sen ior lead er ship pos i ti on pos t- PI3527
positions.
st u dy.
Nu mb er of c o-fou nders a nd
Re f e r r i n g t o t h e n u m b e r o f c o -f ounders
f o u nd er of a b usines s pos t-
PI3527 and founder of a business with
st u dy (inc lud ing b rea k dow n of
emerging market disaggregation.
emer ging markets ) .
Percentage of emergi ng m a rk et Re f e r s s p e c i f i c a l l y t o s t u d e n t s f rom
P D 7 9 9 3 , PI 4 060
st u dents. emerging markets.
E mp loym ent b y indus try
po st- stud y (b rok en dow n by PI3527 E m p l o y m e n t b r o k e n d o w n b y i n dust ry.
in dustr y).
Percentage inc rea s e of s a l a ry T h e w a g e p r e m i u m b e i n g c a l c u l at ed is
po st- stud y (b rok en dow n by OI9767 i n c o m p a r i s o n t o s a l a r i e s o f t h e sa me
pe rc ent). individual, prior to study.
Percentage of stu dents w ho Re f e r s t o s t u d e n t s s t u d y i n g w h o ha ve
h ave d ep end ents ( chi l dren/w i f e/ P D 5 7 5 2 , PI 4 060 d e p e n d a n t s ( c h i l d r e n , w i f e , h u s ba nd,
h u sb and etc .). etc.)
47FIND OUT MORE AT
PRODIGY FINANCE.COM
Investing - Risk Policy
Investment is restricted to high net worth and sophisticated investors who can demonstrate that they have sufficient knowledge
and experience to understand the risks of investing. Risks include the potential loss of capital and limited liquidity. Capital at risk.
Investments are long term and it may not be possible to sell your investment prior to maturity. See our full Risk Warning and
Terms and Conditions.
© Prodigy Finance Limited 2007 - 2018. All Rights Reserved. Prodigy Finance Limited is incorporated in the United Kingdom
(Company Number 05912562) with its registered address at Palladium House 1-4 Argyll Street, London, W1F 7LD and registered
with the Office of the Information Commissioner (Reg. No. Z9851854). Prodigy Finance is authorised and regulated by the
Financial Conduct Authority (firm registration number 709641) for certain consumer credit activities and for investment activities
for investors who have agreed to its terms. Prodigy Finance loans are offered to eligible borrowers who are studying outside of
their country of residence and the loans are governed by English law.
Prodigy Services Limited is incorporated in the United Kingdom (Company Number 10201413) with its registered address at
Palladium House 1-4 Argyll Street, London, W1F 7LD. Prodigy Services is an appointed representative of BriceAmery Capital
Limited which is authorised and regulated by the Financial Conduct Authority. Prodigy Services Limited promotes offers of
securities for third party issuers to eligible investors.
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