They aren’t when you look at the student loans immediately
Klein: That’s the concern. But I think our model can compliment the efforts of alumni offices. Not everyone sees this, but that’s fine by us. We think that over time we’ll be able to prove that we live in a world of abundance, where there is a growing pie, as it pertains to alumni investor participants.
Klein: We say that the scholarship is a different kind of investment for alumni. If you think of an investor’s portfolio, the alumni scholarship giving falls into the philanthropic side. We fall into the conservative side of an investor’s portfolio where they can get a return for their money. We see these as very different kinds of investments. So even among the alumni who currently give money to their alma mater, you can see a world in which they can participate in both sides – philanthropy and investment – allowing them to diversify their portfolios. We also tell the alumni offices that our model will engage a larger group of alumni who are currently not engaged with the university.
Training within Wharton: This industry is about a year old. Who’s your competition and how have you positioned CommonBond uniquely in this space?
Klein: Our competition really falls into three different categories. First there are the traditional players – the federal government and the private banks – that represent about 93% and 7% of student loans, respectively.
Furthermore, there is the social lending room, that’s a little more mature than all of our business structure. Professionals including Credit Bar or Excel have been in fellow-to-peer credit as the 2006 and you may 2007, respectively.
But when you increase from definition of attraction organizations, you can believe a scene where not only try student education loans are finest charged, better given and better maintained with this particular design, however, so can be many different types of lending options
The next city, I would personally telephone call personal credit whilst applies especially in order to beginner funds. Continue Reading