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There’s a Major Push to Make This Indian City a FinTech Hub

Last Updated March 4, 2021 4:53 PM
Rebecca Campbell
Last Updated March 4, 2021 4:53 PM

A port city and industrial center in the Indian state of Andhra Pradesh, on the Bay of Bengal, is witnessing a major push for it to become India’s FinTech hub.

In a report from The Hindu , digital banking, data analytics, blockchain and cybersecurity investments are being launched to make the Indian city of Visakhapatnam an attractive location for businesses.

According to J.A. Chowdary, Special Chief Secretary to the Chief Minister and IT Advisor, the idea is to establish a world-class technology ecosystem with a focus on bringing startups in Visakhapatnam, so that it will become the FinTech capital of India.

We are also facilitating collaborations between banking giants like HSBC and academic institutes to create a large pool of FinTech job-ready graduates.

Since the recent demonetization in India, FinTech has rapidly risen in importance with the city of Visakhapatnam being marketed as the ideal location for startups to establish themselves.

So much so, that the State government is undertaking roadshows across the country and overseas in order to attract FinTech investors. In October, the Indian government and the Monetary Authority of Singapore (MAS) announced a partnership to promote FinTech innovation focusing on blockchain and digital payments.

The Hindu reports that investment opportunities will be considered at the CII Partnership Summit in the city of Visakhapatnam on January 27 and 28.

Big on Digital Banking

For a country that lost around 90 percent of its currency with the news of India’s demonetization at the end of 2016, digital banking has taken center stage as people look for alternative ways to pay for services or receive money.

In a bid to push the digital banking agenda, it has been reported that the State Bank of India (SBI) is to become the first in the country to embrace branch-less banking by launching its digital-only bank, SBI Digi Bank.

Expected to launch in the next three to six months this is a significant move, one that the Indian Finance Minister Arun Jaitley will only be too pleased about after stating that banks should start to promote digital banking to limit the use of physical currency.

Not only that, but earlier this month India’s leading private lender HDFC Bank announced that it is using robots in its branches to improve customer service and making it the first to use humanoids in the banking sector.

Such a move could lead the way for other banks in India to adopt the same measures as more banks turn their attention to digital banking measures.

Featured image from Shutterstock.