Student lender CommonBond acquires ‘money mentor’ platform

The newly acquired platform incorporates real-life mentors with AI technology to provide tailored financial advice.

Leading student lender CommonBond has acquired money mentoring platform NextGenVest.

US-based CommonBond and NextGenVest share the same objective of offering financial help to current and former students of higher education.

NextGenVest provides education and financial advice to roughly 15 per cent of college-bound students in New York, Chicago and Philadelphia, according to the mentoring platform. It incorporates Artificial Intelligence and real-life mentors to provide advice to students via text message. This includes assistance on budgeting, refinancing and scholarships.

CommonBond offers loans to current students as well as refinancing opportunities for graduates. The company believes that incorporating the AI technology will offer its customers a hyper-personalised experience, a key driver for long-term success.

Earlier this year, CommonBond completed a $50m funding round. The company says that the acquisition will further develop its growth having already invested in new technologies such as blockchain and securing a AAA rating from Moody’s.

David Klein, co-founder of CommonBond, said in an announcement: “Paying for college can be complex and stressful, and that stress follows most people well past graduation – but it doesn’t have to. NextGenVest allows us to continue delivering the transparency, affordability, and simplicity to the next generation of financial consumers, on the back of differentiated AI technology.”