SBI, A Bank to Bank on!

Recently, in an event in Mumbai , SBI chairman, Arundhati Bhattacharya, announced a Rs 200 crore fund for fintech startups.

These startups are a perfect amalgamation of financial and technological services. According to Arundhati Bhattacharya, SBI will offer up to 3 crore to each such startup. This big boost has come due to the Centre’s strong interest in promoting startup businesses in the country.

The Only Prerequisite

Any startup that is registered in India and is using IT to promote banking and financial services is eligible to reap this scheme’s benefits.

 Helping the fintech startups

Apart from the funding, SBI is also setting up special mentoring teams that will help these startups in tracking progress and utilization of allocated funds. These teams will also have external legal experts to guide through all the legalities of the matter. As a part of this mentoring program, SBI has recently opened a single-point help center, InCube, in Bengaluru where the registered fintech startups can come for all their banking, financial and legal advisory needs. It is a source of great help and reliable information for all the aspiring entrepreneurs. InCube is even helping them in creating business plans and seeking regulatory and compliance information. Since January, 200 clients have signed up with InCube and this number is expected to increase in the coming months.

Changing With the Times

The banks have realized that promoting such fintech startups is a way forward. These startups will help banks cross-sell their products, thus boosting revenue in a major way. The banks have also understood that by using digital technology, which these fintech companies are using, they can increase their presence manifold and reach their customers with greater efficiency. At the same time, there needs to be a proper framework to address the technological risks involved in this model such as data theft and cyber security risk.

Takeaways:-

• SBI has announced a 200-crore fund program for fintech startups in India.
• 3 crore will be allocated to each startup that is registered with this program.
• SBI has set up a mentoring team, InCube in Bengaluru that helps these startups with charting their performance and other regulatory and financial needs.
• 200 fintech startups have registered with InCube since January.