Advancing Financial Inclusion at Cornell

Financial inclusion is becoming increasingly challenging, especially for students managing finances while pursuing academic goals. Over the summer, I had the opportunity to work on building a venture of my own, SmartFin, to address this issue. SmartFin is a fintech startup aimed at enhancing cash flow management and credit accessibility for university students. Through the Johnson Summer Startup Accelerator and the Center for Sustainable Global Enterprise, I was awarded a grant from the Social Impact Internship Fund (SIIF), which allowed me to focus on establishing my own startup to advance financial inclusion on campus.

The challenge of financial access for students

Financial barriers disproportionately affect students, particularly international students and those from less affluent backgrounds. As an international student myself, I grappled with establishing my finances when I first arrived in the U.S. For example, I could not gain access to many financial products due to the lack of information such as established credit history or a Social Security Number. I realized I am not alone in this predicament, so I spent time speaking to students across campuses nationwide. This helped me identify four major financial pain points for students:

• Limited access to credit due to lack of information
• Inability to build credit due to difficulty accessing credit
• In the event of unexpected expenses, resorting to informal funding such as borrowing from family, partners, or friends
• Poor financial literacy

SmartFin helps students to achieve more with less

According to data reported by the American Council on Education, approximately 43 percent of students in the U.S. indicated that they come from a less affluent background, and a significant portion—over 8 million—lack access to credit products that could lessen their financial burdens. This situation creates a pressing need for solutions that empower students to manage their finances responsibly while building their credit profiles.

The SmartFin platform is aimed at university and college students who have limited or no access to traditional credit options. By leveraging transaction data from existing proprietary wallets, SmartFin constructs credit risk models to responsibly offer micro-credit options to students. The platform not only provides immediate financial relief through breaking large purchases into smaller instalments but also incentivizes responsible spending through a reward points system. Students earn points on transactions made on campus, which can later be redeemed for cash equivalents or other benefits. This dual approach helps students manage their expenses while fostering good credit habits.

SmartFin builds on digital payment solutions on campus such as Cornell’s Big Red Bucks (BRBs). Students can break up a transaction into smaller payments at no additional cost based on their usage patterns and transactional data. This regular payment pattern feeds into their credit score, so it is important for the student to pay the instalments as scheduled. No new transactions can be made until the payment is settled, and any remaining balance is reflected on the student’s bursar account. By using SmartFin in this way, the student can earn reward points that can be used for their next transactions.

Key milestone achieved in the summer

During the 10-week accelerator program, I spent a lot of time researching user patterns. This included analyzing transaction details to identify patterns and trends to ensure that the credit risk models accurately reflected students’ financial behaviors. This allowed me to improve the credit risk model by 50 percent. This task required a deep understanding of transaction behaviors, including the types of transactions students made, their frequency, average ticket size, and the sources of their funds. The goal was to create profiles or identify characteristics to identify who would be eligible for SmartFin’s micro-credit offerings. I discovered insights such as:

• Spending patterns: Most undergraduate students primarily use BRB for food-related expenses. In contrast, graduate students— especially local students with established credit histories—showed a tendency to use debit and credit cards more frequently.
• Financial struggles: Through interviews and surveys conducted on campus, we discovered that many students struggled with cash flow management—particularly when it came to purchasing textbooks, paying student fees, and managing everyday expenses.

Building relationships with potential users was another key aspect of my summer internship. I conducted interviews with over 100 students, gathering qualitative data about payment preferences and suggestions for improving campus payment methods. This direct feedback was invaluable in refining SmartFin’s approach and ensuring that our solutions aligned with students’ needs.

SmartFin’s impact on financial inclusion

SmartFin’s approach to financial inclusion is not only about providing credit, but also about giving students the tools they need to manage their finances effectively. By addressing the specific challenges, SmartFin aims to create a more inclusive financial ecosystem on campus.

An integral part of SmartFin’s mission is to promote financial literacy. As part of my internship, I contributed to developing educational resources that teach students about credit management, budgeting, and responsible spending. This proactive approach helps students understand the importance of credit, the implications of their financial decisions, and how to build a solid financial foundation.

For many students, particularly those from low-income families or international backgrounds, SmartFin offers an opportunity to establish a credit history. By using the platform responsibly, students can build their credit scores over time, which can open doors to better loan terms, housing options, and even job opportunities in the future.

Lessons learned

Throughout my internship, I learned several valuable lessons about the fintech industry and the importance of financial inclusion:

• Understanding the financial struggles faced by students is crucial to driving innovation and ensuring that solutions meet the needs of users.
• The importance of data cannot be overstated. Analyzing transaction patterns and user behaviors enables companies like SmartFin to make informed decisions that enhance their offerings.
• Working with diverse teams—including data scientists, marketers, and finance professionals—demonstrates the power of collaboration. Each team member’s perspective contributes to a more holistic solution.

My summer internship building SmartFin from the ground up was a transformative experience that deepened my understanding of financial inclusion and resonated with the challenges I have faced on campus. By promoting responsible financial behavior and providing access to credit, SmartFin is making strides toward creating a more inclusive financial landscape for university students that will help set them up for financial success after graduation.

As I move forward in my career, I will use the lessons learned during this internship to continue helping create technology to empower individuals financially. The work being done at SmartFin is just the beginning, and I am excited to see how it continues to evolve and impact the lives of students across the country.

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About the author

Ain Razali is a second-year MBA student from the Johnson Cornell Tech 1+1 MBA program. A proponent of the Fintech for Good movement, she received her early training at the Central Bank of Malaysia on financial sector development. Later, she joined a tech company to work on building the pioneer digital bank for gig workers in Southeast Asia. At Johnson, she continues to pursue her fintech interests through the Big Red Tech Strategy, Blockchain Club, and the Fintech Hackathon competition. She is a Forte Fellow as well as an Emerging Markets Institute Fellow.