“Over a period of seven years, we focused on digitizing schools and utilizing advanced analytics and AI to enhance learning outcomes. While working closely with schools, we identified several challenges they faced with financial management, including handling collections, managing finances, and maintaining cash flows. These difficulties were further amplified during the COVID-19 pandemic. To address these issues, we launched Zenda”, shared Haseeb Ahmed, Co-Founder, zenda.
“The most significant challenge we observed was the timely collection of fees. Our research found that only 56% of parents pay within 30 days of the due date, while the rest pay after 60, 90, or 120 days. Conversely, school expenses are typically fixed, with 70-75% needing to be paid in the first week of every month. This discrepancy creates significant stress for school finance teams. Additionally, we have mapped out various collection methods used by schools, including cash, PDC, POS machines, bank transfers, and payment links, and have found that these processes are often complex”, added Haseeb.
“Our goal today is to revolutionize payments in financing and education. We believe that three key actions must be taken to achieve this. Firstly, we should digitize the fee collection process to provide a seamless end-to-end experience for parents. This would allow them to log in, view payment details, and select their preferred payment method, such as Apple Pay, bank transfer, or credit cards. After completing the payment, they should receive an instant confirmation. Secondly, we need to automate fee reconciliation to alleviate the burden on school finance and accounting teams. This process is time-consuming and should be automated for digital payments to be effective. Lastly, we must focus on improving the parent’s experience. Most schools charge fees upfront, which can be stressful for parents, who earn monthly. To mitigate this, we should offer solutions that make their lives easier”, he further added.
“To address these challenges, we launched Zenda in June 2021. Zenda’s mission is to build financial products for families, parents, and schools. We recognize that financial services are generic solutions, but education has unique needs that require tailored products. Therefore, we worked with colleagues across different schools over the past 18 months to develop ground-up products that meet the specific requirements of schools, including last-mile integration and reconciliation. We have launched five products so far, including Pay Now, which allows parents to make payments on the app anytime, anywhere,” concluded Haseeb.
