The Growth of FinTech Industry in India and its Positive Effects in Kerala
The growth of the FinTech Industry in India has provided a solution to one of the major problems faced by individuals and families alike – the problem of managing money. Commonly, too much is spent and too little saved or invested. Access to good financial services has been limited so far. And this is what FinTech in well on its way to changing.
FinTech as a sector is sure to attract more than double the investments by 2018. One notable FinTech startup company that is cutting out its mark in the economy now is extravelmoney.com. An online marketplace for currency exchange and outward remittance services in India, this is a startup which began in December 2014 based out of Kerala and has been receiving rave reviews.
Infact, Kerala has reaped amazing positive effects with the growth of the FinTech Industry. Kerala offers 30% lower costs and provides electricity at 5.51 per unit thus fostering an environment which enables for its rural and urban areas to benefit from the IT operations.
These giant strides forward is now complemented with the Public Private Partnership between Federal Bank, Startup Village, Department of Science and Technology (Government of India) and Kerala State Government. Together, they have focused on launching India’s first focused FinTech Studio scheme. A unique programme, it aims at speeding up technological innovations in the financial sector space by providing start ups an incentive to contribute to the area. Floated in March 2015 it has already shown some promising positive impact.
What makes FinTech especially significant for Kerala is that with the State’s high literacy rates and increasingly young population, it finds users and creators alike.
Not only does it create jobs, FinTech brings accessibility to key financial services across the economic ladder. High risk lending and debt trap situations has become less common. FinTech provides a broader spectrum of access to services that help manage spending, save more and make investments for long term financial health.
With a less than 5% attrition rate in Kerala’s IT sector, FinTech has a good chance of going really big in the near future in Kerala. And as the FinTech Studio Scheme has become India’s first innovation incubator in this space, Kerala as the frontrunner stands to be most benefited.
As, Sh. Sanjay Vijayakumar, the chairman at Startup Village chairman pointed out, with the State heading to becoming a knowledge economy, there is a need to create next generation jobs.
And, FinTech is doing just that!
As part of the FinTech Studio programme, technology which is based on innovation ideas in the financial sector domain has been brought forth to startup companies who are coming up with viable implementation solutions. Start Ups are selected for a 14 weeks FinTech Acceleration programme.Each team receives a ‘Startup Box’, which contains an iPhone 6, iPad mini, Macbook Air, Nexus 5, Kindle, 1 terabyte hard disk and a Arduino Starter Kit, besides a company registration deed, a bank account opening form and an application form for the state’s Student Entrepreneurship Policy.
Federal Bank and Start Up Village mentor the start ups for product development. Federal Bank expects to commercially deploy some of the ideas at the end.
This has added immense value to the start ups and excited engineering graduates in Kerala. The teams selected for the first phase being college students is an encouraging and promising sign for the future of FinTech.
As Sh. PH Kurian, principal secretary for industries and IT put forth “The recently rolled out Kerala Technology Startup Policy envisions creating an entrepreneur-friendly ecosystem”.
Given the buzzing FinTech environment in Kerala, this is sure to be a win-win deal for all FinTech enthusiasts, users, innovators and entrepreneurs both in the short and the long run.