WAYFORWARD

WAY FORWARD FOR FYP
1. To achieve its three-year plan of procuring five million users.

2. FYP should transform itself into an edtech/fintech platform
3. Teach kids what long-term investing and diversification
4. Show a teen that their money can potentially grow and work for itself
5. Teach kids what long-term investing, diversification and build wealth
6. Four main Pillars
7. Earning wise/SPEND/SAVE/INVEST
8. By targeting untapped markets
• EDUCATIONAL LOAN:
 Demand for education loans rose to a record level in 2020, a year when most
schools and colleges in India and across the world were forced to conduct classes
online due to the pandemic.
 Education loan companies – which include banks and non-bank lenders - have
disbursed Rs 11,000 crore loans in the 12 months through September 2020,
according to data from CRIF High Mark, a credit bureau. A bulk of the disbursals
happened through the pandemic period with more than 3 lakh new borrowers
signing.
Read more at:

https://economictimes.indiatimes.com/industry/banking/finance/education-loan-demand-hits new-high-despite
pandemic/articleshow/81090597.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
1. The rising cost of education:

Rising costs of education have made it difficult for parents to invest in their children’s
education, especially at a time when many parents have faced pay cuts in their jobs.
The pandemic has added further pressure on parents’ purses, creating further demand
for finance options to manage education-related expenses. It is estimated that 1 in 5 of
the students found it difficult to cover their fees, even after being in college for a year.
2. Cost of overseas education continues to be high:
Despite the pandemic, it is observed that there is a growth in the number of students
wanting to shape their careers by studying abroad. The overseas spending for such
high courses is also expected to increase in the years to come. The spending on
overseas courses is expected to reach USD 80 billion by 2024 from the current USD
28 billion, according to statistics from Red Seer. Besides, education loan institutions
are already noticing a rise in outbound student enquiries.
3. The surge in aspirants pursuing multiple courses:

With most students pursuing their education virtually from home during the pandemic,
they have the flexibility to pursue multiple courses. The proliferation of EdTech
companies across the country has allowed aspirants to take up multiple educational
avenues to upgrade and up-skill.
4. Continued demand:
With the sought-after higher education courses being far from affordable, and
education remaining a key concern for most Indian households, education-related
borrowing will continue to rise in the country.
5. Introducing other financial products:

As children set foot into teenage and their expenses grow, as they are mature enough
to start managing their finances early on, they will get curious about and want to start
investing. This might just be the best decision parents could do by helping them.
Encourage them to start their journey towards investing by listing out the options,
• Best Investment Plans for Students in India:
(Some of the best investment plans for college students in India that will
give them a higher return.)
1. Mutual Funds
2. Bonds
3. Cryptocurrency
4. Deposit Schemes
5. Share Market
6. Target-Date Funds
7. High-Yield Savings Account or CDs
 Some types of mutual funds are created specifically with children in mind, whether
to fund college, pass on legacy gift, or secure the child's future.
 Assuming the child is under the age of 18, they'll generally need a minor account
to get started investing. In some cases, minors can open on their own accounts. An
adult, such as a parent, can also open investment accounts on behalf of their minor
children. Typically, these accounts are to save for school or other long-term goals.
 Teenagers need to know how to invest in assets, and do it prudently so they can
develop their net worth as they get older. Permitting teenagers to experiment with
investments is a super way for them to learn how to invest. The best investment
ideas for teenagers shouldn’t involve a great deal of risks.
 Investment in Index Funds

The typical nature of teens involves instant gratification, and investing may seem
boring to teenagers. To ensure they remain interested, they need to have more control
over investment plans. Rather than be a young stock investor, investing in a single
company’s stocks, index funds hold a host of benefits.
 Individual Stocks
In case the index fund investment notion doesn’t fly with an investor at a young age,
they can always invest in companies they’re familiar with, owning a few shares.
Investing in companies gives them better financial acumen in terms of the state of the
economy at large. The craze of cryptocurrency is prevailing in the entire world, but
the new class of Indian investors is becoming the new enterprising teenagers in the
Crypto market. Their pocket investments are helping them to search for the
investment and invest the money. The early investors and teenagers have made around
6.6 billion investments in the last five years in India. As a result, the increasing
number of teenagers grew in covid-19 as they became more interested in quickly
getting the cryptocurrency.
Along with the investment by the teenagers and transactions during the pandemic
made them learn about several important things like discipline and Momentum in the
subject. As per the new scenario, online investment is essential in elementary
schools. Cryptocurrency exchanges may not allow less than 18-year-old children to
participate; however, their parents can work on their behalf. Blockchain is a futuristic
technology, and the early education in the investment will prove future results for him.
• Career Counselling
Career counsellors are professions who provide career counselling to individuals who
are confused as to what career option to choose. The career counselling centre
provides professional career counselling by certified career counsellors and they
charge a fee between Rs1500 to Rs 5000.
Career counsellors help students and professionals identify the right career skills and
path. They are in huge demand more than ever.
Their scope has also been ever-expanding, starting from just for school students to
now being essential even for senior professionals to plan their career well.
 Dearth of professional career counsellors:

Currently, India needs at least 1.4 million more career counsellors to bridge the gap
between demand and supply. Because of the sheer largeness of the gap, there will be a
constant need for counsellors for years to come
Large size of the market:
The estimated size of the need for career assessments and guidance is stated at
approximately Rs 5000 crores. So not only is there a gap in the availability of
professionals but also a vast market potential that is yet unexplored.
 Internships
• Internships allow students to gain a competitive edge
• Internships play a crucial role in shaping one’s career. It not only helps
undergraduates and graduates gain real exposure to working environments but also
helps them develop the necessary skills required to stand out in a saturated job
market. graduates who complete more than three internships are more likely to
secure a full-time job.
There are a lot of players who are facilitating student internships:
1) Intershala
2) Let’s Intern
3) Twenty 19
4) Glass door
5) Killer Launch
6) Hello Intern
FYP can collaborate with these people or start their own platform for facilitating
student internships.
 Credit scores
• Most of the banks provide students with feasible interest rates on education loans
provided they have a good CIBIL (credit score) rating. Many students may not
have a credit history.
• FYP can rate students on the basis of social scoring
• Understanding consumer credit behaviour by making use of data collected on
social networks. A financial credit granting system based on social media
profiling, is a global issue
• With most of the teenagers connected through different social networking
platforms, the opportunity to offer a disruptive solution to the market emerges: A
smarter credit analysis integrating social media data.
 Help students who are moving overseas with easy access to banking
by opening bank accounts:
• After a brief dent in 2020, the trend of students travelling overseas for higher
education is back in full gusto.
• The duration of your education can be anywhere between one to four years or even
longer. Hence, it becomes imperative to open a bank account in the foreign
country. The account helps you pay for your day-to-day expenses and make other
transactions like payment of fees, rent, etc., more manageable.
 Advantages of an International Bank Account for Students
 Saving for Education:

 Payment of Fees and Deposits:
 An account before relocation:
FYP can tie up with foreign banks and help students open overseas bank
accounts.
 Opportunities
• Breaking away from income-based classification of consumers, A survey covering
10,000 upper- and middle-class households in 20 cities and made exclusively
available to India Today-Provides an age wise, consumption-based classification
of urban India. The youngest in the hierarchy is the Wired Generation. Spanning
eight to 19 years in age, this segment comprises two different but overlapping
classes of consumers. The Tweens (8-14 years) and the Teens (14-19 years). Born
almost entirely in the post-liberalised economy and raised almost completely
around modern technology (computers, Internet and other gadgets) this consumer
class is redefining its consumption pattern,
• For a nation where 53 per cent of the population is less than 25 years of age, it is
the emergence of Generation. Supplementary to downageing is another trend:
The fall in the age at which people buy certain products or services.
• India is getting younger. But its children are getting older-faster. The rapid
invasion of technology into the urban Indian household may have left grown-ups at
a loss, but it has made children feel quite in control. And the control these
technology babies have come to wield at home is extending to the marketplace.
Teenagers are big spenders in online shopping, ordering food online, booking
movie tickets online, Online gaming. All this is possible because they have access
to digital payments. Most children in urban areas get pocket money and would
prefer to spend digital money rather than cash.
• Market size is around 250milliion (11 to 19 years)
• Preteen and Teenage population: 12 - 15cr
• A number of users Out of the 12cr population which is FYP’s target consumer. An
increase in mobile phone adoption and lower cost of the internet will benefit
FYP’s growth. Sizable teenage population, children are extremely tech savvy,
everyone has a smart phone thus no need to open a bank account minimum KYC
Will help in acquiring the accounts of parents and target them.
• FYP is a first market mover in grown-up space. Capturing them at an early stage,
and engaging them with No Fee Account, cashback, rewards, and no overdraft.

WAYFORWARD

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WAYFORWARD

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WAY FORWARD FOR FYP

1. To achieve its three-year plan of procuring five million users.

Read more at:

1. The rising cost of education:

3. The surge in aspirants pursuing multiple courses:

5. Introducing other financial products:

 Investment in Index Funds

 Dearth of professional career counsellors:

 Advantages of an International Bank Account for Students

 Saving for Education:

• Market size is around 250milliion (11 to 19 years)

• Preteen and Teenage population: 12 - 15cr

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