Finleap invests in German app aggregating student finance products
Finleap, the German fintech with a major stake in Penta, has invested an undisclosed amount in a platform which aggregates student financing products.
deineStudienfinanzierung – “your study funding” – is currently in beta. It helps students navigate their financing throughout academia and into the job market, where they take with them substantial debt to pay off.
With German tuition largely free, students have restricted access to living cost help
“Going to university is often the first moment when young adults become more involved with finance,” says Florian Resatsch, Finleap’s chief build officer.
The investor deems the start-up as an ideal entry point into finance for Gen Z. A customer segment banks and fintechs are both trying to tap.
“Those who understand how it ticks will be a decisive game-changer in the financial industry,” adds Resatsch.
The German student financing market
In April, German universities and student groups issued a joint warning. The claimed the COVID-19 pandemic had left many students in “dire financial straits”.
Reported by Times Higher Education, the warning was a result of part-time jobs largely being wiped out due to the national lockdown.
In June, the country’s government made €100 million available for international students studying in Germany only. More specifically, it helped those with less than €500 in their bank account.
Because the majority of university tuition in Germany doesn’t cost anything, only some students receive means-tested state aid for living costs.
This sees the majority of students fund themselves, rely on parental help, or seek out other financing options.
deineStudienfinanzierung cites a CampusBarometer survey, conducted by the German Education Authority. It found nearly 80% of students in Germany need at least one of the start-up’s aggregated financing options.
“There is enormous pressure on students at various points. Such as performance pressure, time pressure, and, as a result, high financial pressure.
“Through our offers, everyone gets the opportunity to concentrate fully on their studies,” explains Bastian Krautwald, deineStudienfinanzierung’s founder and CEO.
Read next: German business banking start-up Penta tops up Series B by €4m
