During an announcement on Tuesday, the leading student loan provider announced that MPOWER and Tilden park are now working together to raise funds for MPOWER’s Loan Automation platform. Although founded only seven years ago, MPOWER has been the leading provider for educational loans to high-promise International Students and DACA recipients. They have been able to finance students from over 350 Universities. Now, Tilden Park, an NYC-based investment management fund, has provided them with additional funds that will help support their platform’s automation and help the company grow.
What does MPOWER Say?
Having already raised $9 Million last year, the additional $25 Million will help MPOWER increase their operations and establish their operations in Bangalore, India, and Washington, DC. This 7-year-old company has managed to raise more than $30 Million in funds for its operations, with Halcyon Angels being one of its investors as well. MPOWER believes that with the support of Tilden Par and their immense experience in credit and global management, they will be able to ensure steady growth. Thanks to the recent investment, MPOWER aims to employ more than 50 employees across their two new offices.
According to MPOWER, this investment was made because Tilden Park believes in MPOWER’s social message and mission, as well as their credit power. This comes as no surprise as, since its inception in 2014, MPOWER has doubled its revenue each year. In 2021, they hope to reach double-digit gain. With this investment, MPOWER will now be able to help more students realize their dream.
MPOWER comments that the demand for student loans is at an all-time high, and it likely will not go down any time soon. Due to the global pandemic, students have an increasing need to borrow, either due to increased requirements or because the pandemic has dramatically affected their parents’ ability to spend money for their child’s education. Being a digital student loan provider, MPOWER has made it easier for students to access their services and benefit from them.
The co-founder and CEO of MPOWER comments that there is likely to be an increasing demand from students’ loans as more people from emerging markets will hope it increases their socioeconomic ability and mobility with International Higher Education. For many, a US Degree seems to be the “golden ticket” that will help them earn a much higher salary, whether in their home country or internationally. Hence, it is not likely that the demand from international students will go down. Additionally, government policies and changes designed to help international students encourage more International students to leave their home country and access education in the US or Canada.
How does this investment help?
The funds are aimed to be used for the MPOWER loan automation process. Now, students will be able to make loan decisions within minutes. MPOWER’s digital platform features an exclusive process for underwriting, one that is seldom seen with any other fintech platform. With a robust automated system, they can help more students with less time.
Additionally, thanks to this investment, MPOWER can now employ more people across its offices. Currently, MPOWER has 50 employees across their offices in Bangalore, India, and Washington, DC. With the help of this investment, they aim to double this number. The district office can accommodate up to 87 employees, and the company has already announced that roles are open across HR, Accounting, Marketing, Underwriting Analytics, Finance, and Operations. This is excellent news for job seekers since MPOWER was not only named one of the best workplaces located in Washington, DC, but it was also praised for its workplace diversity. Additionally, it also secured a position in American Banker’s top fintech firms where people can work consistently for the third year in a row. Hence, MPOWER has been gaining popularity even before this investment.
Currently, the district office in Washington DC serves as the financial hub for the organization. It handles the regulatory and legal department, along with the accounting and capital market as well. This office also assists those students who continue to stay and work in North America.
Does MPOWER help International Students and DACA Recipients?
MPOWER understands that helping people is not only about providing them with financial stability, but it is also about understanding the difficulties they face. MPOWER comprises mostly ex-international students. Hence, they are quite familiar with the challenges they face. Even during the COVID-19 crisis, the firm upped its ante in helping international students accessing higher education.
MPOWER has joined forces with over 350 universities located in Canada as well as the US. They have provided student loans to international students from over 200 countries. In 2014, MPOWER processed more than $2 Billion in loan applications. MPOWER is the only student lender in the world that uses both overseas and domestic data for credit. It also leverages future earning potential to process loans for International Students and DACA recipients who have great potential.
MPOWER believes that they need to help students in every way they can. Hence, apart from providing loans, they also help students prepare for their life after they graduate from school. From assisting them in building their credit history to provide them with financial education and offer them support in their career growth. Thus, students can receive help in every aspect to prepare for their life abroad.
MPOWER is a steadily growing company and has been able to bring in profits and funds from numerous companies. As more companies invest in MPOWER, it builds their credibility and presents them as a promising company. MPOWER has been able to reach many milestones over seven years. And with more investments, the organization will be able to help more international students and DACA recipients. Working to empower domestic and international students, with the tremendous support for students, it is no wonder that MPOWER is considered one of American Banker’s top fintech firms.