- Edtech moss He wants to be the new bank for college students he serves first via scholarship links.
- company Giving more than 400,000 students access to a package of financial aid worth over $160 billion.
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news: Edtech Mos wants to be
For college students, it’s offered first via scholarship links — and founder Amira Yahyaoui sees a clear path forward, according to a TechCrunch feature.
More on this: The publication reported that the company, which was founded in 2017, has given more than 400,000 students access to a financial aid package totaling more than $160 billion, adding that the announced scholarship funds exceeded $1.5 billion as of 2021.
- Mos recently took home $40 million from his Series B round, worth $400 million.
- Its strides into new banks over the past year include the introduction of the debit card. Mos’ revenue mix now includes scholarship access and exchange fees.
- No debit card fee for overdraft or ATM network status; It also lacks late fees and minimum balance.
- More than 100,000 students opened accounts during the first quarter of the year to launch the card, Yahya told TechCrunch, and he estimated that Mos became the 10th largest new US bank.
How does Moss distinguish himself: It takes a “community first approach,” according to TechCrunch, which entails acquiring customers, gaining their trust, and then selling them new products.
- Yahya sees Moses’ model as a way to maintain post-college relationships with young people: “We cater to you in those early years of adulthood, and in the future we’ll grow up with you because you’re going out of college, after apartments for rent and paying rent.”
The post notes that the new bank faces competition for its target demographics.
- This includes Frank, who recently JPMorgan Chase acquiredflourish, which give people money Linked to their college presentation letters.
- Yahya doubts the success of well-known players in the student space, telling TechCrunch that “banks are trying to become relevant, but students aren’t buying the bachelor’s degree that incumbents do.”
Why it can work: Mos is well positioned to become the primary bank for its new clients because its relationship with them is linked to one of the most important events in their lives. By using scholarships as a starting point — rather than promoting banking products first and foremost — the company differentiated its approach from other US competitors.
This tactic fits well with the preferences of Generation Z consumers for several reasons, for every Our latest report on their financial behaviour:
- they are Relative aversion to debt He grew up seeing millennials struggle to meet their student loan obligations. moss Upgrade functional of scholarships as an alternative to debt aligns with their concerns.
- They highly value financial literacy, giving Mos an opportunity through the scholarship service and offering advice-based products. TechCrunch stated that “more practical advice for advisors” could be added.
- They often do not trust the existing financial institutions. For example, data from the Center for Kinetics of Generations found that only 11% of women and only 19% of men surveyed said they sought advice from partners at banks or credit unions.
- They are a growing base of digital users. Our projections show that the number of Generation Z digital banking users in the United States will reach 45.4 million in 2025, up from just 22.7 million in 2020.
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