Innovative education finance enabler predictive algorithm and automation

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This project will create the technology infrastructure to enable provision at scale of the first regulated, outcome-based consumer finance, and in doing so widen participation for the UK's professional qualifications. The FCA have granted StepEx unique authorisations that permits the issuance and management of Future Earnings Agreements- "FEAs". This project will fund the necessary infrastructure for the successful and compliant delivery of this product into the market. The benefit of this proposition is it will provide financing for the most able students who are currently excluded -those who are not beneficiaries of "the-Bank-of-Mum-and-Dad".The Government student loans of £10,906 available today do not cover the cost of top post-graduate degrees (e.g. London Business School MBA at £87,600) and are ineligible for technical qualifications (e.g. Makers Coding Bootcamp £9,600). 75% of people in the UK who could benefit from these qualifications (those under 30-years-old) are excluded as they are unable to obtain more than £6,000 of funding. The institutions that provide these qualifications have traditionally relied on international students to fill demand however COVID19 has deterred a significant portion of prospective foreign students.Debt providers are unable to provide an effective solution for this market because they are legally and commercially obliged to assess applicants based on their past income and expenses, which does not consider their greatly improved salary prospects upon graduation. The consequence of this is the exclusion of many applicants, and unaffordable repayments that lead to high default rates for those few that do take loans.StepEx will enable universities and technical providers with to offer students the ability to pay for a course with a share of their future graduate income rather than just an upfront fee for example a Master of Engineering for an upfront fee of £30,000 or 7% of future earnings for 5 years when earnings exceed £25,000\. Akin to students giving the university "sweat equity" in their future income for a defined number of years. This will allow the up to 10m UK residents who are unemployed or whose jobs are at risk largely due to COVID19 to attain the skills required to renter the much changed post-COVID19 workforce.This project will provide the necessary infrastructure for launch, including an office facility, key operations staff, technology re GDPR/collections, marketing and tax/legal advice.Upon successful completion of this project, StepEx will have created all of the necessary technology infrastructure to provide the financing solution being sought by education institutions to widen participation in the £6bn worth of top post-graduate and technical courses in the UK each year. This will assist the UK economy rebound to preCOVID19 levels by helping the 10m UK residents who are unemployed or at risk of unemployment, obtain the skillsets required by UK businesses. Those countries with the most qualified, flexible and innovative workforces will return most quickly to full employment and international competitiveness.