Standard Bank wants to offer solutions to address the issue of high tertiary fees in the country. The bank's objective is to raise R100 million to cover the tuition fees of 3 000 students over the coming year.
Standard Bank's Feenix is an online crowdfunding platform that helps tertiary students raise funds towards their education.
Using a written profile, video and images, a student can motivate for public funding by showcasing what makes them unique. Corporate and individual funders sign-up on the Web site and can donate to individual students or the BBBEE pool funding.
Jayshree Naidoo, interim CEO of Feenix Trust, says the fund is part of a multifaceted strategy by the bank to develop practical ways to help the youth access quality education by removing some of their financial burden.
"Access to education remains a major challenge for so many people with ability, but who lack funds. The trust is intended to support the poor and missing middle students, those who should be assisted by government and other interventions, but who have fallen through the cracks in those systems."
Naidoo adds that businesses and civilians have shown interest and want to play a part but do not have an avenue to do so. The bank has undertaken to be the financier and go-to-market partner of the trust, a public benefit organisation (PBO), which has been established to retain and manage funds from donors.
"The bank will charge a 5% administration fee charge to sustain operations and has committed to the project for 36 months, or until the project is self-sustaining."
Fees are paid semi-annually, directly to the 26 public universities across the country, with plans to extend the service in the near future to students studying at other tertiary and higher learning institutions.
"The projections drawn up by the team are that the operating costs of Feenix will be covered by the admin fees charged in about three years. We see this as a long-term commitment, one which we are proud to be associated with," Naidoo notes.
All users of the system (students and funders) are checked and verified against relevant databases made available to Feenix by the bank's fraud protection and sanctions departments, and data of payments received and disbursed will be kept for auditing purposes.
All degree types for accredited courses at any of the 26 public universities across the country will be accepted at the moment, with plans to extend the service in the near future to students studying at other tertiary and higher learning institutions.
In late 2015, tertiary students led protest movements across the country in response to an increase in fees at South African universities. The students used social media through the hashtag #FeesMustFall to gain momentum and lobby other institutions to join the movement.
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