EdTech replacing FinTech by attracting substantial investments towards digital education
EdTech businesses are emerging rapidly every year pushing the count of EdTech companies to thousands in one country based on their origin. Besides, many experts and technology researchers claim that EdTech will soon outperform every other industry that is established on the digital platform. The willingness of people to stay connected with education through the pandemic has led digital education to become a popular mode of learning. Following this enthusiasm and response, EdTech investments have increased by many folds. In fact, FinTech has also fallen back in terms of investments owing to its vulnerability and risk-oriented expenditure. Therefore, eminent economists claim in terms of attracting investors, EdTech replacing FinTech.
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India alone recorded about USD 4.7 Billion investments in 2021, while the UK raised nearly USD 300 billion in 2021 over its 1000+ EdTech businesses. Economists are constantly encouraging investments in EdTech subtly, as the trend and analytics reveal a profitable future in EdTech investment. The digital education sphere has gained all time high impetus and empowerment for the first time since 150 years. This evolution unfolds a long-term futuristic model that will only grow, thus investors seem attracted as students and teachers strive to accommodate EdTech tools in their daily life despite inconvenience, believing it as the new normal. On the contrary, fintech seems to be an insecure bet for the investors, therefore, their preferences tilt towards EdTech.
Education Payment Methods
Cash exchanges are very common in the education models as the young children do not possess a bank account of their own and their parents send the money in envelopes or directly submits to the authority. Amidst the concerns to upgrade educational instruments and curriculum, the need to adopt FinTech is often ignored, thus leading to the prosperity of the institution but not FinTech. EdTech businesses have turned out to be so innovative and advanced that they are introducing their own payment-making platforms without any assistance from FinTech. Thus, the phenomenon of EdTech replacing FinTech comes more apparently on the forefront.
The financial expenditure of the educational institutions and EdTech investments are allocated to different requirements associated with developing quality. This further uses up the financial resources through different channels, making the FinTech opportunities go unrecognized. While boosting the economy single-handedly, EdTech replacing FinTech. Barely any amount that is received by the EdTech businesses are dedicated to the FinTech or bank deposits. This is because EdTech tends to derive all its investments done in the educational equipment from the subscribers by convincing them over the special features and advantages extended. Thus, the intervention of FinTech seems useless to them.
Expanding Payment Options
When EdTech investments will be facilitated through a well-defined FinTech application, it will be offering a lot of convenience to both the EdTech business as well as the investors. Incorporating FinTech in EdTech will be no less than a boon for the educational transactions involved. Collaborating with FinTech will improve payment processing. Besides, there is a likelihood of a positive response from the stakeholders as it expands their numbers by merging both the industries. This will further scrape off the crisis occurred from EdTech replacing FinTech.
An Unifying Boon
EdTech businesses are highly efficient in delivering digital education in times of crisis and for further educational convenience in future. However, though people witness EdTech replacing FinTech it cannot be denied that FinTech is way more meticulous in money matters. While students and teachers tend to benefit greatly from it, adopting a specific FinTech solution will ease up the pressure. As educational organizations are preoccupied with developments in the field of advancing curriculum structure, they will be relieved from the heckle to create a payment software along with it. When the responsibility of it is passed on to another Fintech company, it can be superbly managed without clashes and errors. Putting forward a faster, easier, cost-effective and electronic access solution to the investors can also add up to their reasons to choose a particular EdTech company over others. Multiple FinTech companies also provide the options to automate and customize financial transactions.