Industry

SBI floats Rs. 200 crore fund to assist fintech firms

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State Bank of India has floated a Rs. 200 crore fund to assist start-ups in the fintech space, its Chairman Arundhati Bhattacharya said.

The fund named ‘IT Innovation Start-up Fund’ will consider assistance of up to Rs. 3 crore to a firm registered in India for promoting their business innovations using technology in financial services, she said speaking at a CII event in Mumbai.

Traditional banks across the globe have been open to work with new age fintech firms, which are disrupting business models by using technology to deliver services at lower cost.

“With emergence of technology, banks are facing twin challenges of managing their technology legacy stack and bringing the cost down for small transactions,” Ms. Bhattacharya said.

She also said that with the advent of new age technology, banks need to learn from new kids on the block and foray into unexplored areas of services to customer for enriching their banking experience. “Banks today need to cross sell in collaboration with fintech companies as they are here to stay.”

SBI has also formed a mentoring team to assist start-ups, which will support, monitor and make a report on the progress and the utilisation of the funds by the venture.

The team will facilitate and guide business, extending help in various areas including additional funding requirement, Ms.Bhattacharya said, adding that it will also give external legal and financial assistance as and when required.

She also called a suitable regulatory framework to address the associated risks, like technology risks, cyber security risk, data theft risk, among others.

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Printable version | Jan 23, 2020 2:00:59 AM | https://www.thehindu.com/business/Industry/SBI-floats-Rs.-200-crore-fund-to-assist-fintech-firms/article14425968.ece

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