Prodigy Finance: From Capital to Community

Min Ji Kim is an MBA student at Saïd Business School, dosage University of Oxford and the project manager for this year’s Oxford Social Innovation Case Competition, an event that sees teams of students  tackle a real-life business problem faced by 3 different social entrepreneurs, then present their case to a panel of judges where a £300 cash prize is awarded to the 3 winning teams. Previously solely supported by the Skoll Centre for Social Entrepreneurship, this year has seen the generous sponsorship of Prodigy Finance; the MBA tuition fee loan company supporting international students to access high-quality business education.

Although I am now familiar with Prodigy Finance – an official sponsor of this year’s Oxford Social Innovation Case Competition (OSICC) – I have to admit that I used to think that it was a conventional financial institution with a conventional student loan product. I was therefore initially sceptical as to how the company was compatible with the objectives and identity of the OSICC.SICC logo (2)

There was a personal colour to my scepticism. Before I enrolled in the MBA programme here at the University of Oxford, I was an official in the International Labour Organisation (ILO), the UN agency with the mandate to research global employment trends and promote decent employment for all. In the wake of the 2008 Financial Crisis, the organisation found itself very much connected to the consequences of that fall-out and compelled to advocate for millions of ordinary people and families around the world whose livelihoods and, sometimes, survival were suddenly threatened as a result of the irresponsible conduct of the financial sector. At the ILO, I was personally responsible for tracking the devastating consequences of the crisis on youth employment figures and youth flight and brain-drain from crisis-affected countries. It is not surprising that in this milieu, and in the growing popular disillusionment with capitalism beyond it, it was increasingly accepted as fact that capital and community well-being were diametrically opposed.Prodigy Finance1

However, incredibly, Prodigy Finance demonstrates that this does not have to be the case. Founded on the conviction that a person’s country of birth or socio-economic background or lack of a credit history in one fixed country should not hinder her from accessing the world’s top business schools for lack of financing, Prodigy has found an ingenious way to mobilise the often dispersed but high-impact power of the community to invest in not just financial capital but the more important human capital. Even before online crowdfunding was “a thing” Prodigy had developed an online platform through which international students could receive relatively low-interest loans that are fully funded by the alumni of their MBA programme. More than 70% of Prodigy loan recipients are students from developing countries, and more than 80% of the company’s clients could not have accessed the financing necessary to accept the offers they received from top academic institutions had it not been for Prodigy. Prodigy’s business model is predicated on the idea that investing in such talented individuals, giving them the opportunity to have the life-changing and character-stretching experience of a top graduate programme, would lead to the sustainable development of these individuals’ home countries and communities.

It turns out that I am surrounded by ample evidence that Prodigy’s business model is sound. A significant number of my colleagues and classmates are financing their MBA education with the inter-generational community support represented by the Prodigy loan, and they are among the most inspiring, entrepreneurial, and values-conscious people I know – in other words, the kind of people the most likely to create exactly what competitions like the OSICC exist to curate and promote. There is no doubt in my mind that after completing their studies at Oxford they will have tremendous impact, whether they return to their home countries and apply what they learned through the MBA there or get employed in the UK and invest in the sustainable development of their nations from here.

What is equally clear is that, despite not being a loan recipient, I am also impacted through the experiences, insights, and vision of my classmates that Prodigy serves and have become all the richer for it.

Most importantly, I have been pleasantly humbled to consider the possibility that capital in its truest form is neither opposed nor isolated from community but is always embedded in it.

Author: Min Ji Kim (MBA 2015-16)