Med Student Loan

This story really caught our attention because it spotlights a fintech that pivoted from its original charter. Any entrepreneur worth their salt knows that few startups go exactly as intended, and we place ourselves squarely within that category as well. In this case, Ohio fintech Splash Financial, which originally launched to encourage college students with savings ("save more, borrow less"), found that while a worthy mission, they were just not getting traction. And really? College students are typically more interested in beer money than savings, I daresay, so it was very smart of them to pivot. And pivot they did, to become an alternate funding platform helping med students find low cost student loans. We like that, and we hope this new targeted focus proves a winner for the firm.

(Cindy Taylor/Publisher)

"Startups are rarely overnight successes. There are many sleepless nights and stressful months before a kernel of success is found. Splash Financial is a perfect example of this long journey.

Originally conceived as a college savings platform using the concept of "save more and borrow less," it became clear that the company had to pivot to thrive.

CEO Steve Muszynski expertly guided the company to focus on becoming an alternate-funding platform for physicians instead, meaning they help medical students access low-cost loans for college.

"There was a gap in the marketplace," noted Muszynski, "where financial institutions were pooling risks inappropriately." Doctors, it turns out, are better-than-average financial risks. Now Splash Financial had a worthy mission.

The company will roll out its refreshed fintech platform in Northeast Ohio during the next few months on a robust digital platform that can ramp-up quickly as Splash attacks new markets. Splash plans to target the Cleveland Clinic, University Hospitals and MetroHealth.

There are about 3,000 physician residents in Northeast Ohio, which could represent almost $6 million in mispriced debt. That could break down to $200,000 per doctor of inappropriately priced personal debt for medical school.

Splash Financial completed a $3.3 million financing round in January of 2017 from several local angels and will become the newest entrant in the booming digital lending marketplace that includes LendingClub, OnDeck, SoFi and Kabbage.

The company is now working with banks to help build an efficient lending platform where a strong capital source (i.e. - the banks) do not have immediate access to the doctor marketplace...."