PRODIGY Finance is targeting $500m (£400m) of loan originations next year, as it looks to diversify its funding sources.
The peer-to-peer lender specialises in offering student loans to people studying outside of their home country, with students typically coming from developing nations such as India or Brazil to study in the US, the UK or continental Europe.
It has lent out more than $650m since launching 12 years ago and has expanded from solely lending to MBA students into other ‘high-potential’ disciplines, such as engineering and healthcare.
Two months ago, it launched a new product, enabling students to refinance their loans.
Read more: Prodigy Finance raises £760m in debt finance
As well as aiming for $500m of originations next year, Ricardo Fernandez, head of new business and strategic partnerships at Prodigy Finance, told Peer2Peer Finance News that the firm is renewing its focus on impact investing and retail investors.
After focusing heavily on institutions and securing a number of warehouse lines from banks, Fernandez said that Prodigy Finance will be targeting family offices and endowment funds this year, who like the fact that impact investing brings a social benefit as well as high returns.
There are also plans to launch a fund for retail investors this year. Individuals can only currently invest in Prodigy Finance through its bonds. The Financial Conduct Authority-authorised firm has issued around 150 bonds, including an education bond in partnership with Credit Suisse, which is listed on the Irish Stock Exchange.
But Fernandez said that a fund would boost liquidity for retail investors. Student loans are typically quite long and students would take them out before starting their course, meaning that a Prodigy Finance bond could have a maturity of 12 years.
In the future, Fernandez said that Prodigy Finance would like to expand its product range to become “the financial services provider for the global expat community”.
This could include home loans, personal loans and credit cards, he said.
This article originally appeared in the January print edition of Peer2Peer Finance News. You can read the full issue here.