finance 3

Fintech: What It Is and What It Means for Us

One word you may hear thrown around a lot, often with reference to Climb Credit, is “fintech.” But whether you’ve heard of it or not, it’s a term which has had a large impact over all our lives in the 21st Century. To help you better understand this emerging market, our blog post this week is dedicated to helping explain what fintech is and what it means for all of us.

First off, what is fintech?

It’s a combination of “financial” and “technology,” and as you may guess from those two words, it refers to services that merge technology and finance. To get even more specific, Oxford Dictionaries defines it as “Computer programs and other technology used to support or enable banking and financial services.” If you think that seems pretty nebulous, well, you’d be exactly right — not even its capitalization is agreed upon by everyone. (A quick Google search will turn up alternations between “fintech,” “Fintech,” “FinTech.”) The term originally just referred to computer technology used for non-client–facing offices of banks and trading firms, but in recent years it’s expanded to include a wide range of technological advances in the financial sector.

What are some examples of fintech companies?

Well, for one, Climb Credit. We use technology both for calculations and analytics, streamlining the loan process for students and schools. Other companies and tools commonly referred to when discussing fintech are Bitcoin, the digital currency; mobile banking; digital wallets like those from Apple and Google; Venmo, which allows users to transfer money between their bank accounts and their friends’ via their phones; crowdfunding campaigns; and a variety of budgeting apps to make it easier to keep track of your money anywhere. And that’s just a snapshot of what’s included in the world of fintech.

So what does this mean for us?

Things will become faster and simpler. Processes, like a Climb loan application, are becoming paperless and more efficient. New technologies are taking the guesswork out of financial decisions, even learning the financial habits of users; a whole plethora of information can be learned, gathered, and analyzed. This is then a two-way street; companies and consumers now have greater access to each other, and more data is accessible from both parties than ever before. Of course, this is a market that’s both quickly growing — it saw an investment increase of $11.07 billion worldwide from 2008 to 2015 — and quickly changing. New services and advancements are being created and added to the definition of fintech, so we’ll get to see where it goes next!

Leave a Reply

Your email address will not be published.Required fields are marked *

Subscribe to get more info sent straight to your inbox!

What to Expect: Realistic Outcomes

Climb’s Comprehensive Access Solution can offer a strategic balance of increased enrollments and upfront cashflows compared to traditional lenders. While no financing solution guarantees 100% collection, our data-driven approach maximizes both upfront cash and long-term repayment rates.

Typical Partner Results:

  • 15-30% of students qualify for Climb Loans with upfront tuition delivered to the school shortly after course start
  • 45-60% of students qualify for 0% APR* payment plans
  • Enrollment increases of 20%+ reported by partner schools**

**Results vary by school and student demographics. This represents performance reported by individual school partners and should not be considered a guarantee of your specific outcomes.

The bottom line: CAS is designed to maximize your net tuition recovery while eliminating the administrative headaches of student financing.

Maximizing Your Results

Pro Tip: Schools that require student deposits and set up automatic payments during enrollment see significantly better repayment performance across all financing options. These simple steps can meaningfully improve your outcomes.

FAQs

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

Students are placed into funding brackets (Elite, Standard, Enhanced) based on our AI assessment. Higher-credit students generate higher upfront payments to your school, while students with limited credit are seamlessly directed to our 0% Payment Plan.

These brackets are established using data from over $1 billion in career training loan originations and may be adjusted periodically based on updated repayment trends.

Important note: Regardless of which bracket a student falls into, they are considered fully paid by your school once funded. The student’s repayment obligation exists exclusively between Climb and the student.

Elite Access not available for Computer Science programs. Upfront percentages vary by industry and loan terms.

Once Climb disburses upfront funding for a student loan, that student is considered fully paid by your school. You will not receive any additional payments for that student—the single upfront payment is complete and final.

From that point forward, the student’s repayment obligation exists exclusively between Climb and the student. Your school has zero liability if the student defaults, and you keep the full upfront payment regardless of the student’s future payment performance.

They’re automatically offered our 0% Interest Payment Plan, ensuring no student is turned away while maintaining steady monthly cash flow for your school.

Higher-credit students generate larger upfront payments (75-100% of tuition), while students with limited credit use our 0% APR* Payment Plan for consistent monthly revenue. Both options are risk-free for your school

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Typically, within 5-10 business days after your partnership agreement is signed.

Comprehensive onboarding webinar, continuous partner support via AI-assisted chat and live email—and real-time borrower assistance with our live-chat-available student success team.

No. Climb fully manages the administrative responsibilities—your team simply monitors your school’s performance via our intuitive School Portal.

Your school is fully protected either way. For Climb Loans, you keep the entire upfront payment with zero liability. For Payment Plans, you only receive what students actually pay, with no risk to your school.