Maharashtra govt pushes development of tech solutions for financial services

Maharashtra govt pushes development of tech solutions for financial services

Government’s plans include Global FinTech Hub, new courses on using technology in financial services

The Maharashtra government will soon set up a ‘Global FinTech Hub’ to support start-ups and incubation centres working towards developing technological solutions for financial services. The hub, which will have an area of 10,000 square feet, is likely to be established in the Mumbai Metropolitan Region. It will act as a central control system from where stakeholders such as educational institutions, banks, technology firms and financial services companies will be routed for support.

Maharashtra’s Department of Information Technology (DIT), which will head the hub, will have a corpus fund of Rs 250 crore. The fund is to be generated in the next three years for initial functioning. The Maharashtra Industrial Development Corporation (MIDC), the Mumbai Metropolitan Region Development Agency (MMRDA) and the City and Industrial Development Corporation of Maharashtra (CIDCO) will all equally contribute Rs 25 crore towards this fund.

“In the beginning, the DIT will allocate funds for initial operations until the hub becomes self-reliant to generate revenue from its own sources,” said a DIT official. A senior official from the Maharashtra State Innovation Society (MSInS) said, “This decision is a welcome move as technological interventions in financial services have been necessary for a long time. It  will also boost the sector, which has, during the last three years, grown tremendously in digital transactions.” There are also plans to offer specialised courses in FinTech, the official said.

“The Department of Higher and Technical Education can design relevant courses at both graduate and under-graduate levels so that colleges and universities will provide the necessary human resources for this field in future.” As part of the plan to give a boost to technological solutions in financial services, start-ups in this field, having an annual turnover of up to Rs 25 crore, can receive support. The start-ups will additionally be eligible to receive a reimbursement of Rs 3 lakh every year against electricity bills incurred during operations, an official statement in this regard said.

To extend and provide long-term support, the government is considering the creation of an investment fund of up to
Rs 20 crore, which will be collectively generated by all stakeholders. “These funds can then be used to support FinTech incubators during their initial phase of operations,” the official stated.