One in five organizations globally is having trouble finding skilled tech talent according to Manpower. That talent can be trained with short, focused programs, often known as bootcamps.
Demand for digital talent continues to accelerate globally. Up-skilling programs will help Mexico to compete globally while combating youth unemployment, which is 8.1 percent in Mexico (2021).
Quotanda, a student financing software and services platform, has been working for years with top bootcamps in Latin America, including Academlo, Codeable, Desafio Latam, DevF, Emtech, Hack a Boss, Kodemia, LeWagon, Thincrs, among others, to expand access to education with inspiring job outcomes. Funding from IDB Lab, the innovation laboratory of the Inter-American Development Bank (IDB) Group, is helping Quotanda to accelerate that expansion.
Lino Pujol, Quotanda’s COO, explains, “The bootcamps Quotanda is partnering with provide exceptional job-placement opportunities. These courses deliver critical digital skills that employers need.
The focus of these bootcamps ranges from full-stack web-programing to data science, UX/UI, cyber security, Salesforce, etc. In most cases, students that complete these courses, which typically last around four-to-six-months (full or part-time), are able to double both their monthly salary and expected lifetime earnings.”
Quotanda and IDB Lab are intentionally promoting “inclusive ISAs”, those with conditions and incentives created to support the participation of underrepresented groups in the tech industry. Funding from IDB Lab, and other participants, will help to bridge the gender-employment gap and the socioeconomic mobility gaps in Mexico.
“With this program, IDB Lab aims to foster inclusion and to help more women and students from vulnerable backgrounds gain the skills they need to start a career in the digital economy” says Elena Heredero, Lead Specialist at IDB Lab.
Student funding has historically been offered in the form of loans, on which students are required to pay fixed monthly payments. However, IDB Lab resources will be used to fund students via Income Share Agreements (ISAs), an innovative financing product with downside protection.
What is the advantage of Income Share Agreements?
ISAs focus on the student’s potential while traditional student loans require proof of current income and in many cases, co-signers and guarantees. With ISAs, the bootcamps and the investors only receive a return when the student gets a well-paid job. ISAs align the incentives of the school investors with student professional success.
Read more about ISAs here: 7 Questions About Income Share Agreements: An Innovative Proposal For Higher Education in Latin America by Elena Heredero, Lead Specialist at IDB Lab
Quotanda aims to grow this program to meet increasing employer demand for new skills with investment from both public and private sources.
Foundations focused on education and employment have committed to co-invest. In addition, several Mexican states have expressed interest to invest in this program to upskill students and professionals in their state. Corporations keen to hire professionals with the tech expertise have also expressed interest in participating.
The growing digitalization of traditional business and the growth of technology-oriented businesses is driving this demand for people with digital skills. That transition makes tech bootcamps in the region crucial for economic growth.
Quotanda aims to create a bright future where ISAs help millions of students from underrepresented groups to access all sorts of education with proven job-outcomes.
What role does Quotanda play? Quotanda, with funding and support from the IDB Lab, provides Income Share Agreements (ISAs) targeting women and students from vulnerable populations.
An ISA is a contract where students, in exchange for financing (in this case their tuition), agree to repay a percentage of their future income. Importantly, they pay only if they find a job that pays over a certain threshold.
Quotanda believes that partnering with top tech bootcamps with proven student outcomes can help reduce inequality in the region. With this initiative, and the support of like-minded investors including development banks, foundations, corporates and family offices, the company aims to prove it.