There has been a growing push from the Centre towards supporting the startup ecosystem. Keeping in line with this current economic mood SBI has set up a Rs 200 crore fund to support startups in financial technology.
Digital technology has slowly permeated into banking and payment services. This has led to a growing interest among financial institutions towards startups that are doing innovative work in the fin-tech sector.
In addition to the fund, the banking institution has also set up a team of mentors to assist startups in this space, a well as monitor their progress. The team will also guide startups into additional funding processes as well as provide legal and financial help if the need arises.
A branch called InCube, has already opened in Bengaluru in January. While the branch is not involved in actual funding it helps startups in the various stages of planning, legal help and registration requirements. InCube has been operational with 200 clients till date. SBI has acknowledged the growing competitive application base of fin techs and their mutually beneficial nature with banking institutions giving both parties several opportunities to cross sell. Additionally, it has also acknowledged the need of a proper regulatory framework to counter various security and data theft risks involved given their expanding base.
