During my time at the University of Lincoln for my master’s, I’ve learned a lot about business and product management. My passion for product management and understanding how businesses work has driven me to study hard because I truly want to help business owners make a lot of money. Information is power, and it’s key to taking a business to the next level.
The first bank I registered with in the UK was Revolut Bank. Their customer care is incredible—whenever I have a problem, they solve it immediately. I truly love Revolut for the support they’ve given me throughout my time at the university, which is why I’m putting this post out. As much as I am dedicated to analyzing the strengths, weaknesses, opportunities, and threats of different companies, I want to bring Revolut an opportunity.
The Opportunity: African Student Loans
Revolut has already achieved massive success, with a valuation of approximately $48 billion as of March 2025, according to Schroders Capital Global Innovation Trust, a significant investor in the company. But I believe there’s a way they can grow even further—by offering student loans to African students who wish to study in the UK.
This new product could help solve the financial barrier that many students face when trying to study abroad. By offering these loans, Revolut would open up educational opportunities for many African students, making the UK more accessible and affordable to them.
Here’s how I envision the loan system working:
- Loan Amount: £10,000 (approximately $12,500) per student
- Repayment Periods:
- 1 Year: 10% profit
- 2 Years: 20% profit
- 3 Years: 30% profit
To make this work, students would need guarantors from both their home country and the UK, who would be verified for security. This loan model would encourage responsible borrowing, while also offering Revolut substantial returns on investment.
Potential Profit Impact on Revolut’s Valuation
If Revolut successfully implements this loan system, it could generate massive profits, potentially increasing its valuation significantly. Let’s break it down:
Profit for 100,000 Students:
- 1-Year Repayment (10% Profit):
Profit per student: £1,000
Total profit (100,000 students): $100 million - 2-Year Repayment (20% Profit):
Profit per student: £2,000
Total profit (100,000 students): $200 million - 3-Year Repayment (30% Profit):
Profit per student: £3,000
Total profit (100,000 students): $300 million
If Revolut successfully scales this program to 1 million students:
- 1-Year Repayment (10% Profit): $1 billion
- 2-Year Repayment (20% Profit): $2 billion
- 3-Year Repayment (30% Profit): $3 billion
Impact on Revolut’s Valuation:
Fintech companies like Revolut are typically valued at a multiple of their revenue or profits. With the potential to add $1 billion to $3 billion in profit annually, Revolut’s valuation could increase by $10 billion to $30 billion. This would bring Revolut’s valuation to $58 billion to $78 billion or more, depending on the success and scale of the loan program.
Additionally, Revolut could diversify its offering by providing other financial services to the students, such as savings accounts, credit cards, and investment opportunities, further boosting revenue.
Why This Will Help Universities
Many universities in the UK have been struggling with a decline in international student numbers. By introducing student loans for African students, universities can attract a large number of students from the African continent, where demand for international education is high.
This initiative can significantly boost enrollments and increase university revenue. More students from Africa would not only benefit from the education but also contribute to the university’s reputation and bottom line.
Companies That Have Tried and Failed:
Several companies have attempted to enter the student loan market, specifically targeting international students, but faced various challenges that hindered their success. Here are some key examples:
1. Future Finance
Future Finance was a UK-based company that aimed to provide student loans for higher education, including international students. Despite their efforts, they failed to gain long-term success.
Why They Failed:
- Limited Funding: They struggled to secure enough capital for expansion.
- Strict Eligibility Criteria: Their eligibility requirements were too restrictive, which limited their market.
- Lack of Strong Partnerships: Future Finance didn’t have strong ties with universities, which undermined their credibility.
2. Prodigy Finance
Prodigy Finance provided loans to international students, but their reliance on predicting future earnings for assessing loan eligibility posed significant challenges.
Why They Failed:
- High Risk: Their model, which depends on the future earning potential of students, was difficult to predict accurately.
- Limited Market: They only partnered with top-tier universities, narrowing their target audience.
- Scalability Issues: Prodigy faced scalability problems due to their niche market focus.
3. LendEDU
LendEDU allowed users to compare different student loans, including for international students. However, they encountered problems as they expanded.
Why They Failed:
- Complexity: The platform’s loan comparison process was too complicated, leading to user confusion.
- Lack of Focus: They didn’t focus enough on the specific needs of international students, making their offering too general.
How Revolut Can Learn from These Failures:
Revolut can avoid the pitfalls that these companies faced by focusing on the following key areas:
- Securing Funding and Partnerships:
Revolut should leverage its existing strong financial backing to ensure the loan program’s sustainability. Additionally, establishing strong partnerships with universities will build trust and credibility with students and academic institutions. - Simple and Transparent Loan Terms:
Revolut is known for its user-friendly interface and transparency in its financial products. Ensuring that the loan terms are clear and easy to understand will attract students, especially international ones, and avoid the complexity faced by companies like LendEDU. - Flexible Eligibility Criteria:
By designing a more inclusive eligibility system with guarantors and data-driven risk management, Revolut can reduce the stringent requirements that caused other companies like Future Finance to struggle. - Technology-Driven Risk Management:
Revolut’s strength lies in its technology. By integrating predictive data models and offering personalized loan options, Revolut can reduce risks and offer competitive interest rates. - Scalability:
Revolut has already proven its ability to scale quickly. By integrating student loans into their existing platform, they can expand the program globally, focusing on key markets and managing scalability challenges efficiently.
Conclusion:
I truly believe that Revolut can benefit massively from offering student loans to African students. Not only would it increase their profit and valuation, but it would also help UK universities tackle the issue of declining student numbers. Revolut’s growth potential through this model is substantial, and I believe it could significantly contribute to their future success.
Revolut has the chance to position itself as a leader in both the financial technology and educational support sectors, while also fostering international student mobility to the UK.
A Bright Future for Revolut:
By strategically tapping into the student loan market, Revolut could not only expand its customer base but also solidify its position as a major global player. This opportunity could very well help Revolut increase its valuation to $78 billion or more in the near future.