As higher education institutions navigate the complexities of international student recruitment, financial management is increasingly crucial in driving both conversion and retention.
Access to comprehensive financial data helps universities identify emerging trends, optimise their messaging, and develop partnerships that support students from key markets. As competition for international students grows, institutions that leverage these tools and insights will be better positioned to attract and retain high-quality students.
From the 2024 September Intake data across different markets we’ve pulled out some of the financial highlights and trends we are seeing.
The September 2024 Intake data shows us that:
Self-funding is predominant
Around 75% of students are self-funding their education, with 61% relying on personal accounts and 37% receiving family support. This data underscores the importance of clear, transparent payment processes that minimise student and family stress over financial commitments.
Anyone that’s worked in the industry knows the compliance process is complex and often requires additional due diligence, especially when verifying financial documents. Could this added need for financial verification in terms of source of funding affect staffing requirements or impact the onboarding process? And are universities prepared to handle increased questions about the source of funds or family contributions? Automating parts of this verification process, as Enroly offers, can streamline the student experience while ensuring compliance.
Diverse funding methods with a rising demand for educational loans
Approximately 19% of students reported using educational loans, with notable regional variations. For instance, 85% of Nepalese students rely on loans compared to only 42% of Indian students. This insight suggests that understanding specific financial behaviours by region can help universities refine their approach and communications in order to appeal to these audiences.
Single source vs. multi-source funding
Most students (90%) rely on a single funding source, while some (7.5%) use two, and a smaller percentage (1%) draw from three or more sources.
This pattern raises an interesting question: Do universities currently partner with financial institutions to ease access to diverse funding sources, and, if so, what successes have they seen?
A few examples we found are listed below. Where the partnerships appear to evidence successful outcomes, including increased student satisfaction and ease of access to education.
- University of Edinburgh: Partners with Prodigy Finance to offer international students access to loans without requiring co-signers or collateral, broadening educational opportunities.
- University of Birmingham: Registered with the Credia Indian Student Loan Program, allowing Indian students to borrow funds covering tuition and living expenses.
Regional financial patterns across markets
South Asia and West Africa: The predominant self-funding approach aligns well with students from South Asia, where personal and family contributions remain the norm. This pattern indicates that universities should focus on showcasing value for money and the return on investment in their offerings, as these students and their families view higher education as a long-term investment.
East Africa: With Kenya leading East African enrolment growth at 43.04%, this region also shows a preference for self-funding. However, there’s a notable interest in loan options among some East African students, suggesting that partnerships with local or regional financial institutions could support broader access to UK education.
Europe and North America: Students from Europe and North America often lean towards using educational loans and scholarships. For instance, U.S. students commonly rely on federal loans like FAFSA and may also use military education benefits, which often involve complex application processes and additional documentation. To improve the experience for these students, UK institutions could emphasise available loan partnerships and scholarships and ensure clear, accessible information on U.S.-specific funding requirements.
Given the complexity of U.S. federal loans and military funding, close collaboration between recruitment and finance teams within universities is essential. A streamlined approach helps guide American students through required steps, minimising delays and enhancing their overall experience. By publishing detailed funding information and supporting students through each stage, institutions can engage more effectively with U.S. and European markets and support these students' financial planning needs more thoroughly.
Enhance your recruitment & conversion approach with CAS Shield payment integration
Funding and financial planning remain pivotal in students’ decision-making processes, especially given that most institutions require deposits. These payment instalments form an essential part of the enrolment journey. However, our experience shows that payment processes can often be challenging for students and staff alike, with delays in confirmation and a lack of visibility creating headaches for university teams and frustration for students and agents. This is why we invested in a solution to address these pain points directly.
The Enroly-TransferMate payment integration brings real-time visibility of payments into the Enroly’s CAS Shield platform, enabling seamless, transparent transactions. This integration addresses common frustrations by offering a pain-free payment process that ultimately improves both student conversion and retention. Here’s how it makes a difference:
Instant payment visibility for faster decisions
One standout benefit of the Payment integration is real-time visibility of payment statuses within CAS Shield. As soon as a student makes a payment, relevant university staff (admissions and compliance) are notified instantly, facilitating quick decision-making and reducing delays. This streamlined approach prevents dropouts due to payment uncertainties and helps keep students on track in the enrolment process, as well as keeping agents up to date instantly.
Reduced administrative burden and error
By automating payment tracking and providing real-time updates, the integration alleviates administrative burdens and minimises data-entry errors. Admissions and finance teams gain more control and oversight of the process, allowing them to focus on engaging students rather than on transactional tasks.
Improved student experience and trust
Payments can be a stressful aspect of the enrolment journey for international students, oftentimes students are making large payments without a receipt of payment being sent for days or even weeks. With real-time tracking, students and agents can see the status of the payments clearly, which reduces anxiety and builds trust. The integration also allows students to pay in their local currency, saving on fees and making payments more accessible.
Flexible payment options with no impact on current providers
The integration doesn’t disrupt existing payment providers with no expectation of exclusivity. This approach ensures smooth financial management while offering universities complete visibility of payments.
Enhancing refund and compliance processes
Refunds are often challenging to process, the payment integration streamlines and simplifies this aspect, reducing delays and ensuring compliance. This feature is particularly valuable for universities that need to meet specific financial regulations in high-risk regions, adding an extra layer of confidence in managing international payments.
How does this information help?
What can universities do to leverage this kind of financial data for strategic gains?
The ability to track payments in real-time, offer flexible payment options, and simplify administrative processes allows universities to streamline operations and focus on delivering a positive student experience whilst enhancing their recruitment strategies and processing speed:
- Develop and tailor financial messaging for different markets
- Understanding how students fund their education can help universities shape their messaging to different markets. Institutions are increasingly focusing on proving the return on investment (ROI) of a UK degree, which is vital not just from a promotional standpoint but also from a student support perspective. Highlighting the long-term value of a UK education can help reassure families where self-funding is common, while loan partnership options and scholarships can attract students in markets where loans are popular. This messaging should not only target students but also be directed to families, counsellors, and local advisors who influence student decisions..
- Develop financial partnerships
- By collaborating with financial institutions or creating direct-to-student financing programs, universities can meet the diverse funding needs of international students. For example, forming partnerships with student loans providers in Nepal or Norway could help support students reliant on loans, while similar initiatives in India could explore creative funding structures or scholarships for students using multiple sources.
- Consider flexible payment plans and support services
- Flexible payment options and financial counselling make universities more accessible for international students. Partnering with organisations like Blackbullion can enhance these offerings by providing budgeting tools, financial literacy courses, and access to scholarships and grants specifically tailored for international needs. Through workshops or online resources, universities can help students manage their finances effectively, building confidence and easing financial stress. This support not only enhances the student experience but also strengthens recruitment and retention efforts..
- Monitor funding shifts for future intakes
- Tracking funding sources and changes in financing patterns can help institutions anticipate and adapt to emerging trends. If the reliance on loans or multi-source funding increases, universities may want to introduce specific scholarships or funding options aligned with these needs to maintain competitiveness and attract diverse international students.
Financial insights as a tool for strategic recruitment and speed
Financial trends from the September 2024 intake reveal the crucial role of funding in the decision-making process for international students. By understanding these patterns and tailoring strategies accordingly, universities can not only attract students but also improve enrolment conversion rates and long-term retention. In an increasingly competitive landscape, leveraging financial insights empowers universities to better serve their international students, aligning resources with market demand and providing greater access to the transformative power of education.
