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1、Payment process transformation:Reimagining the role of finance in the student journeyExecutive summaryFinance teams in UK universities are facing four key challenges in 2023:the international education landscape that are adding to the existing challenges universities are facing:1.International stude
2、nts are coming to the UK from a more diverse mix of countries,with India looking set to overtake China in 2023/24 as the key sending country.2.There are an increasing number of options for international students making cross-border payments,and payment preferences vary significantly from country to
3、country.3.International students now expect a more digitised student journey and that payments will be integrated seamlessly into that student journey.Our research shows that whilst payment preferences vary across sending countries,international students expect their university to have put in place
4、a payment journey that is streamlined and meets their needs.Only offering choice when it comes to payment methods,such as bank transfer or card,and payment options,such as paying in instalments.Growing international student mobility Different payment landscapes driving varied payer preferences and e
5、xpectationsInternal digital transformation projectsGeopolitical issues from some key sending countriesWhilst increasing numbers of international students choosing to come to the UK to study is hugely positive for UK HEIs,not getting ahead of any of these four challenges has the potential to cause op
6、erational inefficiency,spiralling costs and frustration for students and staff.In the six years that Flywire(and formerly WPM)have been conducting research into thepayment experiences of international students,there have been three fundamental shifts inMethodologyFlywire(and formerly WPM)have been c
7、onducting research into the payment experiences of international students for the last six years.The research is intended to understand the attitudes and behaviours of international students towards making payments for their tuition fees,and to see whether any changes have occurred when compared to
8、previous waves of the research.This white paper seeks to share the findings of an online survey and focus groups with international students carried out between 22nd September and 7th November 2022.The research was conducted by an independent research agency,IFF Research,in collaboration with 5 UK i
9、nstitutions:University of Birmingham,University of Bristol,University of Glasgow,Imperial College London and De Montfort University.In total,3,138 international students participated in the survey,giving a response rate of 6%,andtwo focus groups were held for each university with a target of 6-8 par
10、ticipantsfor each group.Finance has traditionally interacted with students at the end of the student journey when an invoice is issued and a payment needs to be taken.However,many students are seeking information about fees&payment right at the beginning of their journey,and the absence of informati
11、on can lead to confusion,worry and making decisions that might not be in the best interest of the student or the institution.As a first step,finance should look to work more closely with the international office,admissions&marketing throughout the student journey,leveraging and creating opportunitie
12、s to communicate payment information early and support students on their payment journey.Long term,institutions should be looking to break down internal silos and the compartmentalisation of the student journey.Instead seeking to understand how joined up processes and better alignment and integratio
13、n of key university systems can enable a more seamless and secure student payment journey and create efficiencies through the institutionThe international payer journey:increasing numbers,increasing diversityThe number of UK study visas granted to international students in September 2022 was the hig
14、hest on record,an increase even on pre-pandemic levels,signalling the continued global popularity of the UK as a study destination.Many universities are also seeing increased diversity in their international student population.However,Chinese nationals continue to be the largest group of students in
15、 the UK overall;151,690 Chinese students enrolled at UK universities in 2021/22.Indian students were the second largest group of students with 126,535 entering the UK in 2021/22,but their new enrolment figures are growing at a higher rate in 2021/22 than in previous years,so India looks set to overt
16、ake China as the top sending country in 2023/24.In third,and with a growth rate that is higher than that of either China and India,are Nigerian students-all 32,945 of them that entered the UK in 2021/22.679,970559,825international students came to the UK in 2021/22were non-EU international studentsO
17、ur international payer research continues to show that students from different sending countries have different needs,challenges&expectations when it comes to payment preferences.Bank transfers are generally the most common payment method used to pay tuition and accommodation fees.However,students f
18、rom India(72%)and Nigeria(64%)are much more likely to pay via bank transfer than say Chinese students,of whom over half(51%)paid by Visa/Mastercard-a greater proportion than from other countries.However,comparing how students actually paid with how they said they would prefer to pay,shows that there
19、 is demand to pay differently and suggests potential dissatisfaction with the payment method they chose.How did you pay for this years tuition fees,and how would you have preferred to pay for them?Providing international students with too much payment choice,particularly if the choices offered are n
20、ot relevant or well explained,can lead to students choosing to pay in a way that on reflection would not have been their preferred method.For example,the data shows that more students would prefer to make payments via Visa/Mastercard(45%vs.37%actual)or country-specific partners(10%vs.4%),than are ac
21、tually utilising these methods.Conversely,fewer students would prefer to pay by bank transfer than actually are.Actual methodPreferred methodBank transferVisa/Mastercard credit/debit cardCountry-specific payment partnerUnionPay credit/debit cardOtherDont know46%37%34%4%2%1%7%10%3%2%6%45%Fig 1:Flywir
22、e survey conducted by IFF Research:A8.What payment method did you use to pay this years tuition fees?All respondents(3,138);B7.Thinking about the different methods you could use to make your tuition payment,what payment method would you ideally like to use to pay your tuition fees?All respondents(3,
23、138)Differentiated payer journeys&payment choicesThe disconnect between students actual&preferred payment methodsPayment providers,such as Flywire,now make it easier for universities to accommodate different payment preferences in one payment journey.However,what continues to challenge universities,
24、and is consistent across these key sending countries,is the large numbers of students paying their tuition fees by bank transfer directly to the universities bank account.We know the number of direct bank transfers are still high because,of those students that paid by bank transfer,60%initiated the
25、payment directly with their bank.Universities also support this finding,many reporting that direct bank transfers continue to be high despite many having removed bank details from their websites.Direct bank transfers dont necessarily drive a poor payment experience for the student,although a lack of
26、 timely payment confirmation continues to be an unwelcome and stressful result of paying in this way.But what a high number of bank transfers does cause is a large number of student enquiries,as well as inefficiencies and risk deep into the back office of many universities.When asked why they select
27、ed the payment method that they used to pay their fees,more than half of students said because it was convenient/easy.Upon exploring this further in the focus groups,what the student often meant by this was that if they were unsure of how the universities wanted them to pay,and/or in the absence of
28、what they perceived to be other viable options,they would default to making a direct bank transfer.Why did you select the payment method that you used?Please select up to three reasons.Convenient/easySeemed(the most)secureUsed it beforeFastest way to payCost effectiveTold to pay in that wayOtherDont
29、 know55%27%21%20%18%14%1%7%Fig 2:Flywire survey conducted by IFF Research:A11.Why did you select the payment method that you used?Please select up to three reasons.All respondents(3,138)Poor customer service topped the reasons given for a bad payment experience,but more interestingly the top six rea
30、sons cited were all rooted in customer service&process issues.Comparing the responses in 2022 with those given in 2019,shows a shift in whats driving a poor payment experience.In 2019,the top reason given was unable to use preferred method at 22%.whereas in 2022,only 11%chose that reason.So whats dr
31、iving poor payment experiences in 2022 is primarily poor customer service,not a lack of choice.Drawing on insight from the focus groups,this seems largely due to poor responsiveness from the finance team when students reach out with enquiries.Much of students dissatisfaction with university responsi
32、veness is driven by the fact that many students are paying directly to an institutions account and then expecting a timely confirmation from the university that theyve received the funds.The large sums being paid mean that students are anxious to know that the funds have been received.But it takes u
33、niversities time to reconcile monies that hit their bank account directly.What drives a bad payment experience?And why was your experience bad/very bad?Poor customer serviceNo confirmationConfusing informationDifficult processProcess took too longIssues with invoiceUnable to use preferred methodHigh
34、 costsOtherDont know15%15%13%13%12%17%16%11%10%9%Fig 3:Flywire survey conducted by IFF Research:A13_Bad/Very Bad.And why was your experience bad/very bad?Those who said tuition payment experience was bad or very bad(416).Chart does not show responses 9%and under It took me weeks to get in touch with
35、 them.So,not responsive.Its quite a busy time,&it took me weeks to get in touch.An is a 1st year,Chinese Undergraduate student.She didnt use an agent to help her come to the UK to study.Her family knew of a few people that had come to the UK to study and so they asked them for advice on where to stu
36、dy and how to come to the UK.An didnt receive any guidance from her university so had been doing her own research and felt confident and excited about coming to the UK to study Note:many Chinese students report that they dont receive university emails because of the Chinese firewall-so often are mak
37、ing decisions with little direct university guidance.Her parents were very involved with the application and Visa process and they were clear that their preference was to pay the tuition fees by bank transfer as that is what they are familiar with and they told An they were not comfortable with payi
38、ng via third parties.They were also keen to take advantage of paying via the China banks because it didnt count towards this capital allowance limit(Chinese nationals can only send$50k out of the country per year,but if paid through a Chinese bank,tuition fees arent included in that limit).An had re
39、searched this on social media and discussed this with her friends as many of them were recommending different ways to make the payment,but her parents were quite traditional and felt bank transfer was the most secure option.An would have liked to have paid her fees online with a card to avoid having
40、 to go into the bank in person(its quite complicated as you have to provide a lot of evidence to prove that your family has the money,and prove that your parents are your parents).And you cant pay on your phone which she would have preferred to do.Or by Alipay and that is what many of her friends di
41、d,but she wasnt confident she knew how to do this and her parents were paying the fees so she followed their lead.The main problem after making the transfer was that the university didnt confirm her payments,so she said she felt confused because it was a lot of money and she paid it all at once.She
42、needed to email the school twice or 3 times to ensure her payment was there.Their response was really slow,so there was a week or 2 until they replied and assured me that my payment was received.And in those 2 weeks I was just worried and my parents were hassling me on a daily basis.An,ChinaCase stu
43、dyAside from the emotional impact on the student that comes from being unclear about the payment process,there are significant operational and safeguarding implications for the institution.Direct bank transfers,the method many students will default to if not guided by their institution,are not only
44、the most operationally burdensome,but they also introduce risk for both the payer and institution.The higher education sector has been targeted over the last couple of years by scammers looking to defraud students.In some instances this takes the form of friends offering to pay a students fees at a
45、discounted rate.On seeing confirmation of payment,a payment made by the scammers using a stolen credit card,a student will transfer their money to the scammer,money that is never to be seen again.If universities are not communicating a safe&clear payment process with their students at the point they
46、 are considering their options,the opportunity remains for criminals to target vulnerable students.The importance of communicating finance information earlyThe student journey:whos talking to students?International officeAdmissionsMarketingFinanceAgentsOffer letterUniversity websiteInvoiceStudent jo
47、urneyAn international student will interact with many different university teams on their journey to come to the UK to study.Although each team has their own roles&responsibilities,a tendency towards siloed working means that often the needs of the students are not always being taken into considerat
48、ion.For example,Finance tends to get involved at the end of the student journey when an invoice is issued and a payment needs to be taken.However,many students are seeking information about fees&payment right at the beginning of their journey.The survey data confirmed that nearly half(47%)of interna
49、tional students are using the services of an education agent to come to the UK to study.And 40%of those agents are advising and helping students to pay their tuition fees.Many students are seeking information at this stage,and the absence of information can lead to confusion,worry and making decisio
50、ns that might not be in the best interest of the student or the institution.Fig 4:Flywire survey conducted by IFF Research:A3.Did you use a student recruitment agent at any point in your journey to come to the UK to study?All respondents(3,138).Fig 5:Did the student recruitment agent help or advise
51、you about how to pay this years tuition fees?All respondents(3,138)International office/education agents47%40%49%58%YesNoYesNo I think they should be precise about the dates you have to pay the instalments at.I mean,I think it was confusing to my agent also and that is the reason I mighthave got con
52、fused but first,it was like I had to pay the whole of my tuition fees before 1st Septemberbut that was not the case.Musa is a first-year student studying International Development.Like most Nigerian students,he wants to take advantage of Form A to pay his tuition fees.Musa knows that Form A allows h
53、im to access preferential Central Bank Rates(CBR),which are heavily discounted from what he can access at the parallel rate,which is essentially the black market exchange rate.He received his CAS and secured his visa but was waiting for an invoice in order to be able to start the Form A process.The
54、invoice finally came in July and he started the Form A process.Hes quite happy about this because some of his friends studying at other universities in the UK dont get their invoice until much later.So hes feeling quite confident because he knows that the later you start the process,the bigger a que
55、ue youll be in,and the longer it will take to pay the university.Officially it takes approx six weeks for the transaction to be processed,but it can take two months or more.Despite this,several weeks later he had still not heard anything about the transfer.The university contacted him to say that hi
56、s fees were late which made him worried.He contacted the university to explain the situation,but found not only was it hard to speak to a person,and when he did they didnt really understand his situation which frustrated him further.From there he received regular email reminders about the late fees
57、which he found so stressful he stopped opening any emails from the university.Eventually,his bank contacted him to say there wasnt enough Naira in his bank account and he needed to submit additional funds for the payment to go through.Finally,the payment went through,but he received no confirmation
58、from the university that they had received the fees despite chasing.Eventually he received an email.As he can only apply for$15,000 per term via Form A hes already thinking about how he is going to pay the remainder of his fees.Musa arrived in the UK with 3,000 cash in sterling that he had bought on
59、 the black market in Nigeria from a known contact,and he deposited this cash in a UK bank account he opened.For his next instalment,Musa is unsure about whether to start a new Form A process or use an app on his phone to buy sterling from a black-market agent.That is how he is currently paying his l
60、iving costs,but the black market is c.50%more expensive than the CBN rate.He feels he has no good options.Musa,NigeriaCase studyFor first year international students whove not used an education agent,the admissions team is often their first point of contact.A key part of the admissions teams role is
61、 providing information,advice and guidance as well as issuing offer letters to prospective students.This presents a key opportunity for finance teams to advise and guide prospective students on how to pay tuition fees.Offer letters will contain information on how much the fees are,but often dont adv
62、ise on payment methods or payment options,or when fees are due.This is a missed opportunity,as the research consistently demonstrates that international students are making payment decisions much earlier than you might think,and looking to make their tuition fee payment before leaving their home cou
63、ntry.AdmissionsWhen did you make your tuition fee payment for this years study and when would you prefer to make tuition fee payments?Actual methodPreferred methodBefore leaving your home countryJust before the payment deadlineDuring enrolment Once you arrived in the UK but beforeenrolling at univer
64、sity202139%32%25%30%33%11%17%16%16%27%33%17%6%20%11%26%*In 2021 this option was in line with the payment deadlineFig 6:Flywire survey conducted by IFF Research:A2.When did you make your tuition fee payment for this years study?All respondents(3,138)B12.And ideally,when would you prefer to make your
65、tuition fee payments?All respondents(3,138)2021 data from DJS Research survey:Q25.When did you make your tuition fee payment for this years study?All respondents(1,624);Q018.And,ideally,when would you prefer to make tuition fee payments?All respondents(1,624)Fig.6 shows that the most popular actual(
66、39%)and preferred(32%)timing of the payment was before leaving their home country.This had increased from in 2021.Around half of first year students(49%)paid their fees before leaving their home country,which is higher than later year groups and significant because those are the students that requir
67、e the most support and guidance.Like 66%of Indian students,Amir used an agent to help him come to the UK to study.The agent helped him with the application and visa processes.They also advised on options with regards to applying for scholarships and loans,although when he asked how he should pay the
68、 university the agent said they werent sure and that the university would probably provide that information.He applied for a partial education loan and spoke to his bank manager to ask for his advice as to how to pay student fees in the UK.His bank manager advised him to call the university and requ
69、est their bank details to make a bank transfer.Meanwhile Amir had received an email from the university and it had lots of information on it which he found quite overwhelming.There was however little guidance about how to pay.The email just said pay this much but there was very little other informat
70、ion about how to pay or when to pay.He also didnt understand whether installments were an option,which would have been his preference as his education loan rates were so high.He did visit the university website to do some research,but felt that many of the options given werent applicable.For example
71、,paying by card from India incurs high fees and taxes and there were also transaction limits.On the earlier advice of his bank manager he called the university,although it was difficult to get through,and requested their bank details which they provided.Having made the bank transfer for the full yea
72、rs fee he expected to receive confirmation of receipt from the university.However,it was a couple of weeks before the university confirmed that they had received the payment and he was worried the whole time that the money might have got lost.Amir,IndiaCase studyMany offer letters direct internation
73、al students to the university website for more information about fees&payments.Often the pages that students are directed to are neither controlled nor influenced by finance.The university website is a key source of information for international students,with many in the focus groups saying it was t
74、heir first port of call to seek more information or clarity on the payment process.Although on the whole students said they could find the information they needed,many said that it wasnt easy.Good website design should be user-centric,and finance is best placed to understand the information payers a
75、re seeking and how best to present it.Theres an opportunity to improve this experience for international students by working closely with marketing to influence the layout and information provided,whilst drawing on the skills of the marketing team to make it visually clear,easy to navigate and impac
76、tful.MarketingWhen you came to using the payment method that you used,how did you startthe payment process and how would you ideally prefer to start it?University websiteOnline via banks website or app In-person/face-to-facePayment partners websiteOver the phoneOtherDont know46%21%58%12%6%9%9%4%5%3%
77、1%3%2%20%Fig 7:Flywire survey conducted by IFF Research:A9.When you came to using the payment method that you used,how did you start the payment process?All respondents(3,138)B8.And thinking about the different ways you could begin making your tuition payment,how would you ideally prefer to start th
78、e payment process?All respondents(3,138)Actual startPreferred startWhy did you select the payment method that you used?Please select up to three reasons.Safety/securityCost Payment received quickly*Easy/uncomplicated processConvenienceOther46%16%15%12%8%1%49%23%12%14%1%58%26%13%13%1%51%19%12%13%2%Th
79、e website performs another key function when it comes to the payment process.The majority of students would prefer to start the payment process on the universitys website.This is important because international students fundamentally trust their institution to establish a payment process and advise
80、and guide them on making payment in the best possible way for them.Initiating a payment on the universitys website feels for many like the safest and most secure option.Which is what the research tells us year on year is the most important thing for international students when making a tuition payme
81、nt.2022202020212019Fig 8:Flywire survey conducted by IFF Research:A11.Why did you select the payment method that you used?Please select up to three reasons.All respondents(3,138)Inherent trust:the importance of the university websiteBut beware of choice overload!Many universities continue to promote
82、 payment choice to their students.Often directing students to their website where they offer different payment methods,different payment options and different payment providers.Whilst students undoubtedly value choice,they also expect their university to have put in place a payment journey that is s
83、treamlined and meets their needs,only offering choice when it comes to payment methods,such as bank transfer or card,or payment options,such as paying in instalments.Otherwise the onus falls to students to carry out research on different payment providers,track rates and make payment decisions which
84、 they largely trust the university to have made on their behalf.The paradox of choice I needed toresearch&search for the payment options and there were 6 or 7.I had too many options.Key takeaways:transforming the role of finance in the student journey Finance has traditionally interacted with studen
85、ts at the end of the student journey.However,the key challenge to improving the payment experience for international students continues to be communicating timely and effective payment information.Students are seeking information early in their journey and that information void continues to drive hi
86、gh numbers of direct bank transfers and student enquiries,which is driving payment risk and operational inefficiency.If finance were to work more closely with the international office,admissions&marketing throughout the student journey,it would undoubtedly pay dividends in terms of closing that info
87、rmation gap and better supporting students on their journey.However,from an efficiency perspective there is effort to maintain and nurture those relationships year on year.Instead,institutions should be seeking to leverage payment integrations and software at every stage of the student journey where
88、 a payment is required;resulting in an easy and secure payment process for all students,that is both transparent and efficient.Practical stepsFor more informationFlywire powers a global education ecosystem of institutions,payers,agents,and third-party sponsors all over the world.The Flywire payments
89、 solution streamlines and integrates payment processing throughout the entire student journey,underpinning global student mobility and transforming the way students and families pay for education.Backed by our powerful global payment network and around-the-clock multilingual support,Flywire enables
90、institutions to securely receive,process and track cross-border and domestic payments from students regardless of location.Speak to your Relationship Manager to find out how Flywire can help transform your payment processes and improve the payer journey.Review student enquiries to understand the mai
91、n challenges&pain points for your students.Share those findings with other stakeholders i.e.international office,admissions,marketing.Partner with university stakeholders to leverage information touchpoints throughout the student journey.Introduce payment options to start to influence payment decisi
92、ons.Ensure communications are timely and considerate.Particularly when responding to student enquiries.Integrate payment options into the SIS.Explore where integrating payment options deep into the student information system could improve the payment experience2023 Flywire.All rights reserved.The availability of our products or services and our product or service descriptions will vary subject to applicable law and geographic location.