Tuesday, July 16, 2024
reading time: 2 minutes
Neo, India’s leading travel banking platform, is gradually expanding its services to Indian students pursuing their education abroad. Currently, students studying abroad account for 20% of Neo’s nearly 1.5 million customers. The company aims to capture half of this market by FY26.
The trend of Indian students studying abroad is on the rise, with the number set to reach 1.3 million in 2023, a 25% increase from the previous year. The number is expected to reach 1.5-2 million by 2025. With Indians spending $60 billion on international education last year, the growth trajectory for the sector is clear.
Around 34% of Niyo student users choose educational institutions in the USA and Canada, making these countries their top destinations, followed by the UK (13%), Australia (12%) and France (7%). There is also growing interest in less traditional destinations such as Kazakhstan, Uzbekistan, Azerbaijan and the Philippines. On average, a student on the Niyo platform spends around Rs 40 lakh per year on tuition fees and living expenses. The Niyo card, which offers no forex margin, allows students to save up to Rs 2 lakh per year on forex fees. This significant cost reduction makes studying abroad more feasible and financially manageable for a larger number of students.
Vinay Bagri, co-founder and CEO of NEO, said, “As the first in the industry to offer a no-charge foreign exchange card, Niyo has become the preferred banking partner for students travelling abroad. The value proposition of the card has enabled students to save a lot on their education expenses. It is also very convenient for their parents to instantly deposit money in Indian Rupees through UPI from India, without any hassle of communicating with banks or foreign exchange agents.”
“Students remain a strategic segment for NEO, with their card spend being five times higher than leisure travelers. By focusing on this high-value segment, NEO is well positioned to expand its market share and strengthen its leadership in the overseas education sector. We expect NEO’s market share to grow from 20% to 35% this year.” Bagri added.
Niyo’s no-forex fee card is a game changer for students studying abroad, eliminating the hefty fees typically associated with international transactions. This feature allows students to optimize their finances, ensuring that every rupee is used effectively for their educational and living expenses abroad. Unlike traditional foreign exchange cards, which are often available only after a visa is issued, Niyo cards have no such restrictions. This flexibility allows students to use Niyo cards early in their educational journey, covering costs such as college application fees, admission deposits, and visa fees, potentially saving up to INR 50,000 in pre-departure expenses. What’s more, Niyo cards can also be used within India for domestic transactions via UPI and other methods.
To enhance its utility, the Niyo app provides students with easy access to over 15 vital services, including accommodation and financial services, across 25 countries through a dedicated section in the Niyo app. This integration simplifies the management of various essentials, making the overseas education experience more seamless and accessible.
