LEO1 makes education financial planning easy for parents

New Delhi: When it comes to education, parents are not ready to compromise the future of their kids at any stage. Also the days are gone when parents had to think twice to fulfill their children's educational dreams. To help them reach those individual educational achievements - financial SAAS companies like LEO1 are addressing the financial challenge faced by educational institutions and parents. An Edu-FinTech company like LEO1 is a financial bridge between educational institutions as well as parents and students. Furthermore, bank loans and approvals are time-consuming and, in some cases, rejected, whereas LEO1 simplifies the financial loan procedure for parents with its tech-based support.

Sharing more insights about how it helps to create Smart Cashless Campus, Naveesh Reddy, COO and Co-Founder of LEO1 excerpts with The Hans India :

1. What services does LEO1 offer, and how is it addressing the major cash flow problems faced by institutions? After implementing the SaaS platform, what has been the fee collection rate, and what improvements have institutions observed?

Answer- The company offers a range of services through its financial SaaS platform, including fee management, smart ID cards, reward mechanisms and, financial literacy modules. With the Financial SaaS offerings the institute becomes a SMART CASHLESS CAMPUS. The SaaS platform is designed to address major cash flow problems faced by educational institutions that automates the fee collection process and incentivizes students to make timely fee payments, ensuring consistency. This automation eliminates the need for manual processes, reducing human effort and the risk of errors, and enables institutions to focus on enhancing the quality of education and infrastructure.

LEO1’s reward mechanism, which incentivizes timely payments with LEO1 Coins, has positively influenced the financial behaviour of students and parents. These coins can be redeemed at various merchant partners like Croma, Zomato, Nykaa, Bookmyshow, and 175+ such online brands further encouraging prompt fee payments. As a result, institutions have seen improved cash flow, allowing them to invest and modernize their educational infrastructure. Since implementing the SaaS platform, as per the institutions there has been a significant improvement in their fee collection rates.

2.How is LEO1’s Financial Aid process different from a bank's education loan, and what benefits does it offer to students that a bank does not?

Answer- Obtaining a bank education loan often involves significant effort, extensive paperwork, and long waiting times. Many students face rejection due to lack of collateral or incomplete documentation, which can hinder their pursuit of dream courses. LEO1 streamlines this process, enabling students to submit all necessary documents at once. Within days, they receive either approval or feedback. With our partnerships with educational institutions, the chances of loan approval are nearly doubled than going the traditional ways. The easy EMI option also makes us different from Bank’s education loan.

LEO1’s financial SaaS platform offers more than just financial solutions—it includes a unique reward system that promotes financial literacy and boosts students’ self-esteem. By earning LEO1 Coins, students are effectively receiving an education currency, which can be redeemed across various brands, helping them reduce educational expenses. Last month alone, over 1,000 students redeemed lakhs of LEO1 Coins for items like earbuds, power banks, USB ports, and perfumes, showcasing the potential of our platform to transform financial behaviour and ensure timely fee payments.

3.How many students have accessed the Financial SaaS services so far, and what are the main use cases? What feedback have students and parents provided?

Answer- So far, over half a million students have accessed LEO1’s Financial SaaS services. The company is partnered with many large institutes like NARAYANA Institutes, SAGE University, Jain Group and many more. To give an example in the July month alone, over 1000 students consumed nearly 1,65,000 LEO1 coins in different products of utility.

Feedback from both students and parents has been positive. Students appreciate the ease of managing their finances and the rewards system, which not only encourages responsible financial behaviour but also provides tangible benefits. Parents have expressed relief at the streamlined fee payment process, which reduces the stress associated with managing education costs.

As for the institutes, they have acknowledged the behavioural shift of families towards timely fee payments to stack up as many LEO1 coins as they can.

4.In how many states are the Financial SaaS services currently operational, and what are the numbers for university tie-ups and students benefiting from them?

Answer- LEO1’s Financial SaaS services are currently operational across multiple states in India, with partnerships extending to over 31 large institutions, including prominent names like Narayana, Jain Group, and SAGE University. Within just one year, over half a million students are benefiting from SaaS services, utilizing the platform for fee management, reward mechanisms , and financial literacy.

The widespread adoption of LEO1’s platform highlights its significant impact in addressing financial management challenges within the education sector, helping institutions and students alike across numerous regions.

5.What are the plans for the future expansion of services across India, and what new developments are underway within the Financial SaaS platform?

Answer- LEO1 plans to expand its Financial SaaS services across 2000+ educational institutes benefitting over 5 million students in India in the next 2 years, further broadening its reach and impact. This expansion is part of the company’s strategy to make quality education more accessible by addressing the financial challenges faced by educational institutions and students.

In terms of new developments, LEO1 is continuously evolving its platform to meet the changing needs of the education sector. Recently, the company introduced modifications to the attendance model and rolled out a Nash-based fee collection model, which allows universities to collect fees directly from parents' accounts on a monthly basis. This ensures more timely fee collection, enabling institutions to allocate funds for enhancing educational infrastructure.

Additionally, LEO1 plans to further integrate financial literacy features into the platform, offering finance-based courses and virtual stock simulators to help students develop responsible financial habits. Over the next nine months, the company also intends to deepen its integration with banks, providing students with savings accounts beyond the Prepaid Payment Instrument, thereby enhancing the overall financial management experience.