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Freedom to Invent Your Future.
Nikita GuptaSarah MillerAdrian Carabias BarrosoSam ChenSiddharth PanchanathanZiquan MiaoNancy Wang
Cornell Tech FinTech HackathonOctober 11, 2015
The Problem
Student Debt (USD $1.2 Trillion = 6% National Debt)
- High debt payments = Low disposable income after graduation.
- Irrational decisions due to financial stress.
Turnover Ratio
- Employee replacement cost companies 20% of the worker’s annual salary (Center for American Progress)
1
2
Consider… Daniil, Cornell MBA ‘15
● $112,000 in student loans
● 2 dependents
● $150,000 annual income with $40,000 annual bonus
The Solution1. Partner with recruiting companies.2. Pay the student debt.3. Convert debt into equity.4. Receive a percentage of the student’s monthly salary.5. Provide competitive rates.
Businesses
- Better talent
- Lower turnover
ΣnVent Profit
Students
- Save money
- Customized payments
- Peace of mind & better decisions
EnVent Web Demo
Methodology
Annual Base Salary Total Debt Family Size GPA Cost of Living
7.01%
$4,617 Savings for Daniil
Our interest rate: vs. 7.65%
Visualizing Our Solution
The Dashboard
Our Company has access to a dashboard of key metrics that help us evaluate the status of the payment plan :
(In Daniil’s Case)
1. Total cash the customer saves by using our product.($4,617)2. Break Even Point as a function of time. (5th year)3. Our Profit Margin. ($57,684 ~ 34%)4. Interest we are charging the customer. (7.01%)5. Lower and Upper bounds of p (10.89%<= p <= 16.94%)6. Maximum possible savings ( $62,301)
In addition to this, when the customer uses our website for an initial evaluation, they are presented with their potential annual disposable income when using our product vs when using a bank or other lender.
Questions?
Methodology
Inputs
Assumptions
Computation
Profit
Links/Work Cited
https://github.com/ng354/cornellfintech (code repository)
http://www.bls.gov/oes/current/oes_nat.htm#00-0000
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