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 an firm registered in India for promoting their business innovations using technology in financial services, she said while 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.”
