PETALING JAYA: The proliferation of digital payments and fintech innovation in Malaysia has significantly transformed how private schools manage their finances.
Today, the digital ecosystem – fuelled by Malaysia’s high e-payment adoption rate – has enabled schools to shift towards automation and financial predictability.
Edvance Digital Sdn Bhd founder and CEO Edward Ling said that historically, fee collection was a largely manual, time-consuming process involving cash, cheques or bank transfers.
“Platforms like Edvance have enabled institutions to automate collections, set up flexible payment plans and gain real-time visibility into cash flow.
“This shift does not just reduce administrative burdens; it empowers schools with data-driven planning capabilities, stronger financial forecasting and operational resilience. Ultimately, it marks a transition from reactive to proactive financial management in education,“ Ling told SunBiz.
He said the expansion of the Sales and Service Tax to the private education sector is poised to disrupt both institutional sustainability and educational access.
“For schools, this means higher operational costs and the risk of reduced enrolment due to increased fees. For families, it represents an added financial burden in an already inflation-sensitive environment.
“The result is a dual pressure point – schools may see rising default rates or delayed payments, while families increasingly require instalment options or deferred payment models,“ Ling said.
He noted that fintech solution providers such as Edvance can serve as a financial bridge, offering tools such as monthly tuition payments, transparent billing and integrated support for fee management.
These models, he said, will enhance affordability and accessibility, ensuring schools remain competitive while supporting family liquidity.
Touching on regulatory or compliance hurdles, Ling said that operating at the intersection of finance and education presents unique compliance challenges.
Education-focused fintechs, such as Edvance, must comply with stringent financial regulations while also accommodating the sensitivities and operational needs of non-financial entities, such as schools, he noted.
“This involves navigating diverse licensing frameworks, data protection requirements under Malaysia’s PDPA (Personal Data Protection Act) and partnerships with regulated financial institutions.
“Edvance approaches this complexity by prioritising end-to-end transparency, aligning with licensed partners (such as banks and payment gateways), and embedding best-in-class security standards into the platform.
“The result is a trusted ecosystem where compliance is built in, not bolted on,“ he said.
Edvance observes several key macro trends shaping the future of education finance in Southeast Asia and is strategically positioning itself to lead and adapt to these changes.
Firstly, the rapid acceleration of digital payments is evident, with Malaysians averaging over 400 e-payments per person last year – a 28% year-over-year increase – highlighting the need for seamless, tech-integrated financial solutions.
Secondly, younger families are increasingly demanding financial flexibility, expecting pay-as-you-go options even in traditionally upfront-payment sectors, such as education.
Lastly, the rise of hybrid learning models is prompting schools to invest in tech-enabled solutions, which in turn requires new budgeting and financing models.
In response, Ling said, Edvance is aligning its offerings to meet these evolving demands, focusing on innovation in payment structures, supporting school digitisation and enabling greater affordability and accessibility in education finance.
“Edvance is positioned at the heart of these shifts. Our solutions are purpose-built for the education sector, offering scalable tools that cater to schools of all sizes and parents from all backgrounds.
“We are not just riding the wave of digital transformation – we’re architecting it for education, ensuring every transaction supports both access and sustainability,“ Ling said.
In a region where fintech innovation is accelerating and traditional lenders continue to dominate institutional credit, Edvance is carving out a distinct path by staying true to a simple yet powerful principle: education-first, not finance-led.
“We are not a bank trying to adapt to education. We are purpose-built for it,” said Ling.
While traditional financial institutions and fintech platforms offer payment plans or point solutions, Edvance approaches the sector with a deep understanding of how schools actually operate. This perspective informs everything, from product design to the formation of partnerships.
“We do not treat schools and parents as typical borrowers or consumers. We treat them as partners in a shared mission – to make education more accessible, more flexible, and more sustainable,” Ling said.
That philosophy has led Edvance to go beyond transactional financing.
Instead of merely offering credit, the company works directly with school leaders to co-create embedded financial solutions that align with school fee cycles, integrate into internal finance teams, and sync with communication systems used by staff and families.
“Our model is not just about offering payment plans. It’s about supporting the entire financial operation of a school – from collections and reconciliation to family engagement and forward-looking financial planning,” Ling noted.
This ecosystem approach is what sets Edvance apart from one-size-fits-all solutions.
By embedding itself into the daily operations of schools and building long-term partnerships, Edvance isn’t just adapting to the future of education finance – it’s actively shaping it.
