Elan Case Study is for Education sector firm

Case study for a potential company

1. Elan Loans End to End Financial Services for your Overseas Education Dream

2. Agenda Case Study Market Landscape Status Quo User Persona and Journey Priorities KPIs Roadmap Mockups

3. KC Overseas and Elan A leader in overseas education with above 6% marketshare One of the pioneers in the industry with over 25 years of experience with presence in sourcing students from over 10 countries to over 15 top destinations across globe One of the paramount challenges that students encounter in their study abroad pursuits is financing their overseas education. A substantial number of students rely on education loans to realize their aspirations of studying abroad KC Overseas has introduced the Elan Education Loans brand to address this issue effectively. A comprehensive service that aids students in securing education loans from both public and private financial institutions to fund their overseas education In two years, more than Rs. 300 Cr has been disbursed with accomplished team of just over 25 experts. Aiming at building a robust B2C platform to aid in scaling to gain market share within the country and also add to new markets

4. Political Factors Strong Push from Local Government towards Increasing employability Supporting Education abroad through various schemes and inclusion in budgets Visa restrictions for in countries for residency like in US Economic Factors Increase in disposable Income Positive attitude in banks towards loans for overseas education as NPAs are increasing for domestic education loan products Forex and currency devaluation Inflation Glooming recession globally Social Factors Lack of adequate employability options in local institutions Severe competition Peer pressure from families Not employable in country High Population growth in developing countries Decreasing working population in developed countries Nice programs focused at employability Technology Edu Sector was one of the highest affected during covid crisis and gave rise to lot of online courses and free courses However, lack of attention and focus has not positively contributed towards employability Legal laws Stricter labour laws in some countries Complying on about Environmental factors Aiming for sustainability Unexpected events like Pandemic could be detrimental to prospects Education Industry Future Factors could potentially Impact Education overseas Key Take Away: With huge difference in currency and wager, availability of high disposable income right from being fresher and able to send the income back Less competition abroad compared to domestic in education and employment Become a Global Citizen Improved Quality of Life and access to better facilities Safety There are several global factors that influence Education Industry. Positive factors outweigh negative factors. Factors like recession are for a short term but with growing options worldwide, education overseas has unlimited opportunities

5. Market Study (Indian Ed.) Graduation Trends : The data suggests that there were approximately 70 lakh graduates in 2020, with an average year-on-year (YOY) growth rate of 3%. This indicates a consistent demand for higher education. Post-Covid Surge : The significant 68% YOY growth in students opting for higher education abroad post-Covid is noteworthy. It suggests that the pandemic may have influenced more students to consider international education options. Share of Students Going Abroad : The share of students moving abroad for education is estimated to be around 10%, indicating that a substantial portion of Indian students aspire to study overseas. CAGR for Overseas Education : The Compound Annual Growth Rate (CAGR) of 9% in overseas education indicates a robust and sustained increase in demand for international education. Continued Growth : The forecast of 10 million students opting for overseas education by 2027 underscores the expectation of continued growth in this sector. Post Covid growth could mean it could be 10 million by 2024 and trend could continue Education Loans : The data suggests that the share of overall education loans disbursed for foreign education has breached 50% in 2022. This shift may be attributed to factors like the perception of better quality education abroad and concerns about employability in India(NPA). Average Loan Amount : The increasing year-on-year average ticket value of the education loans indicates that students are willing to invest more in their overseas education. (Almost doubled) Source: https://pqals.nic.in/annex/1711/AU1759.pdf Factly : Key Take Away All metrics in terms of Overseas education like, Count of Students, Value of loans and average loan ticket are growing YOY

6. Status Quo of Elan and KC Overseas Market Elan Share Share Average Ticket Size Approximate students availed 2021 4504Cr. 107Cr. 2.38% 8.7L 1,233 2022 7576Cr. 193Cr. 2.54% 10.8L 1,779 Elan share is calculated based on 80% YOY growth

7. Student Roadmap for Overseas Identify the interests Choose the best from matched colleges/ Countries Prepare for basic prerequisites Apply for institutions based on interest affordability and eligibility Look for finances based on scholarships or any forms of funding Apply for Loan VISA Process Move and settle Travel and Insurance Assistance There are several intermediate steps not mentioned for convenience to highlight important steps only Organized support from KC overseas Elan services USNews GetmyUni Times Education Kaggle Banks Private Players Vidyalakshmi Leap Gyandhan Auxilo Finserve Funding Societies Prodigy Finance Other non domestic vendors like Mpower , Nomad

8. Student Journey for Overseas Education Identify the interests Choose the best from matched colleges/ Countries Prepare for basic prerequisites Apply for institutions based on interest affordability and eligibility Look for finances based on scholarships or any forms of funding Apply for Loan VISA Process Move and settle Travel and Insurance Assistance Key Take Away: Users have access to several places from where they could gain knowledge and apply individually. Given the Complexity of steps involved, organized and streamline support from KC Overseas and Elan would act as pillars in user journey Organized support from KC overseas Elan services

9. Users applying for Loan Education Overseas Loan Touchpoints Overseas education is a lifelong, one-time investment. Unfortunately, the market is rife with deceptive advisors who offer shortcuts. However, these shortcuts can backfire, causing lifelong embarrassment for the customer. Our aim is to turn each customer into a genuine advocate. We emphasize transparency and deliver appropriate solutions at every step of the overseas education process. By instilling these values into our B2C operations, we can boost scalability.

10. Fundamental Pillars of B2C Loan Application Technology Financial Services Regulatory Compliance User Experience Robust Backend Platform Easy Navigation Easy Communication Competition Analysis was done to small extent on this. However, these are much wider topics and is not considered as part of Scope

11. Target: Increase the loan disbursement value Potential Impact here Player onboarding to Elan is one thing where we are lagging behind in terms of GyanDhan or LeapFinance KC and Elan is already a pioneer here. Could be a scope of improvement Bank Apps have a cumbersome process here. Though it is not part of Providing Loans. Hands on feature for future reference is of a great value Also it is time consuming for student or parent to visit multiple banks. Providing multiple options under same umbrella is a unique and key differentiator Get More customers by increasing the value through referral programs Employee Retention and better packing of schedules Leading to Optimal usage of Time and scheduling for counsellors and prospects Build a complete time-based planning by working through the timelines Loan book Value = Total_Addressable_Market* %Targeted*%Confirmed Admit*Loan Submissions*%Approvals *Loan Amount

12. Areas to Focus on for B2C Elan Assumptions Though there were good number of footfalls(15000 are received through digital sources) Elan has received , only a small %(14% arrived based on average loan ticket calculations) of students opted for loans via Elan and others probably have chosen traditional options Though Elan has tied up with all leading institutions and private players, something is probably making it cumbersome process on loan application As a Tech enabler, we can put increased focus on the same Since its inception, Elan Loans has assisted more than 15,000 students and disbursed US $ 25 million worth of overseas education loans to students who were seeking financial assistance to pursue higher studies in different parts of the world. (Source HT)

13. Product Goal Convert footfalls for Education counselling to initiate or leverage Elan platform to raise loan requests. With further expansion plans in the offing, the company is aspiring to increase the team size to include more than 1,000 employees in the coming year ( Source HT ) As discussed in the 1 st interaction, data is streamlined which can act as source of truth and deep dive analysis and necessary tools are available (Not considered for first cut, but would play decisive factor in affordability algorithm) Focus on seamless end to end Student and parent Experience Ensure Transparency for all the stakeholders Ensure Topline and Bottomline Intact

14. SL Pain Points Features Business Impact Prioritization Effort Estimates(T Shirt Sizing) 1 Users don’t have visibility to Elan Product Suite Increase Visibility across all the touchpoints across Social Media and probably physical footprint in print and OOH media Very High Critical for Phase 1 Medium 2 Registration is not so smooth Optimize the registration flow with automation and collect all the details of student enabling consolidated profile creation High Critical for Phase 1 Large 3 No Comparison of cost between institutions to help me choose best Build cost calculator and recommendation engine Medium to High Critical for Phase 1 Small 4 Document Submission is Cumbersome Option to click and Upload photos on fly High Critial Medium 5 Too much of information to fill manually Simplify by bringing integrations to UIDAI, NSDL or Credit agencies High Good to have Extra Large 6 Users don’t get counselling during the availability Optimize the appointment booking with reminders to all stakeholders for transparency Very High Critical for Phase 1 Small (If we go with vendors like Leadmonk ) Extra Large (For inhouse) 7 Users don’t get easy assistance Implement chatbot and proactive chats to increase engagement to help customers when the student/ parent is stuck in the process High Critical for Phase 1 Small (If we go with vendors like LivePerson) Extra Large (For inhouse) 8 Need more personal attention Based on the user journey step user is in, once the admission is confirmed, assign dedicated counsellor for account management with frequent meetings Very High Must have phase 2 Large 9 I don’t have visibility of the process Make a dashboard view for the parent/ student with SLA/ RAG status High Must have Phase 2 Medium 10 I need to wait for counsellor for any queries I have Setup Help and Contact Center with automated FAQ rankings based on loans institution/ university/country of interest Less contacts to support teams Must have phase 3 Medium 11 I have benefitted, I am to invite others, Create Referral program and Loyalty program Very large Can be split into phases Extra large

15. Mock Ups

16. Brand Awareness on Overseas education sites, Social Media and Forums Increasing brand awareness is by targeting more frequent avenues used by prospective candidates

17. Creating awareness by Deep linking in Student Journey Targeted Communication through available communication modules KC apps could be used to cross sell potential offering which is inline with business Stuck?Book

18. Feature 2: Login Aligning login seamlessly with Social media tools Stuck?Book

19. Feature 2:In App or Web Registration Step 1 Step 2: Cost and Employability Step 3: Fill my Financial Info and credit history. Could add co signor details as well Automatic checks for KYC and AML and Financial history checks about student and family histories Opting basic and advanced modes of registration can help in conversion Stuck?Book Feature 5

20. Feature 7: Dashboard Snapshot view of dashboard that can give detail Stuck?Book Stuck?Book

21. One feature that could stand out for both prospective students and students with confirmed admits is Loan calculator Loan calculator combined with employability metric for future user could drive prospective users to opt for overseas education. Added in Appendix Stuck?Book Stuck?Book Feature 3: Compare, Apply

22. Feature 4: Simplifying Documents Needed and Upload Process Stuck?Book Stuck?Book Stuck?Book

23. Document Submission and Status Screens Stuck?Book Stuck?Book

24. Feature 6:Appointment Stuck?Book Feature 10:Help Center

25. Stuck?Book Physical Evidence of Service Completion

26. Track My Loan Money Spend Link with bank accounts Track money spent based on categories Track repayment schedules Enable Part payments Prepay / Full closure Other potential features for great E2E experience

27. Loyalty/ Referral program Create Referral Program Build dashboard for the referrals Convert referral values to cash or other benefits overseas Linkage with travel cards Salons Since Overseas education is one touch from a customer.Business can grow on Word of Mouth and cross selling of Products through different partnerships Other potential features for great E2E experience

28. With key changes on product are not alone sufficient to be the right ingredient, we should have in the right mix. Élan Services are intangible. We can have perfect mix by being on the right place at right time with right processes supported by right Technology

29. Thank You Q &A

30. Additional Slides for Deep dive on Strategy and Planning

31. Business Model Coursefinder primary business model is on University partnerships where the universities pay cut for each confirmed intake However, Elan can survive standalone given the capability to include all possible students who are not only interested in coursefinder catalogue but any other universities With help of bank partnerships or NBFCs, we can launch a new business plan based on margins on interest rates or processing fees or a combination there of

32. Student Due Diligence and Legal Risk and Regulatory Compliance There are very strict rules and regulations of being an NBFC in India Need to seek help with SMEs and legal guys to proceed with the setup. As we are dealing with cross border funds transfers, we need to ensure compliance with international regulations related to overseas education loans, including anti-money laundering (AML) and know-your-customer (KYC) regulation

33. Financial Factors contributing to Study Abroad Employability Score Algorithm Algorithm should be able to build on historic data and user input to measure Affordabilty and provide suggestions on how can factors be improved

34. Getting ready on Technology Need to work on user facing app for both mobile and desktop for Account Management Loan application and Status Repayment Schedule Transaction histories Interface to track loans disbursements and accept repayments via NACH debits or on demand repayments via banking or cards or wallets Automatic checks for KYC verifications and AML checks

35. Financial Services (Considering Out of scope for this Case Study) But really potential feature impact. Though not quick wins Loans could be disbursed via banks where loans are maintained on their books where Elan can act as broker or interface Default of loans risk would be with banks Based on the Elan site, we are already partnered with quite a few major banks and other lenders With a valid NBFC license, we can act maintain loan books on our end This also means risk and allied things are on our books Negotiate favorable loan terms, including interest rates, repayment periods, and grace periods. We need to ensure pricing is transparent and competitive for borrowers As Coursefinder is already available in other countries, we should engage with local partners to be able to scale

36. Credit Assessment and Approval Key things that can differentiate Elan from competition is the following Reduction of manual intervention We should be able to get information via government authorization and authentication services like Aadhar based OTP, PAN card linked Credit assessments We can develop a robust credit assessment model to evaluate the creditworthiness of applicants. Automate the loan approval process as much as possible by working with bank and financial partners. Implement risk mitigation measures such as collateral requirements or co-signer options.

37. Product Differentiation Strategy Competitor Strengths Competitor Weakness Elan/ Group Strengths Group Weakness

38. Customer Acquisition Comprehensive marketing strategy to reach target audience through digital advertising, social media, SEO, and partnerships with educational consultants and content influencers Create educational content on the benefits of overseas education and financing options. Offer referral programs to incentivize users to refer friends and family.

39. Customer Support and Service Provide excellent customer support to address inquiries, concerns, and issues promptly. Offer multiple communication channels, including chat, email, and phone support. Develop a comprehensive FAQ section and educational resources on your website.

40. Data Security and Privacy Implement strong data security measures to protect user information and financial data. Comply with data privacy regulations like GDPR or CCPA, depending on your target markets.

41. Continuous Improvement Collect user feedback and continuously to improve platform based on user needs and market trends. Stay updated with changes in international education and financial markets to adapt your offerings accordingly.

42. Risk management Develop a risk management strategy to mitigate potential loan defaults. Monitor loan portfolios and implement strategies to address delinquencies.

43. Solution