A bright future lies ahead of the Indian fin-tech industry as the segment gives a necessary thrust to the businesses. The fintech companies primarily aid other business entities in growing along with it. According to Make in India, “the (fintech) industry is likely to continue its current growth trajectory, with the global Fintech software and services sector predicted to touch USD 45 billion by 2020 at a Compound Annual Growth Rate (CAGR) of 7.1 per cent.”
Recently, Centre for Innovation Incubation and Entrepreneurship (CIIE) proclaimed that Indian startup firms working inclusively in fintech will receive nearly INR 25 lakh to create technology solutions for low as well as middle income (LMI) segment. The plan has been taken by CIIE under its Bharat Inclusion programme. The non-profit financial organization has taken this decision as an element of the third accelerator programme, Financial Inclusion Lab. This accelerator programme was formed in collaboration with the international consulting company, MicroSave Consulting, reported Inc42.
The programme invites entries from rising Indian startups working intensively in the niches--fintech, livelihood, and skilling. The organization primarily offers capital to startups for market validation as well as product development.
Grooming the Selected Startups
The handpicked startups under the accelerator programme will be mentored along with field studies by financial veterans and curated discussions by IIM Ahmedabad faculty.
The lab reportedly chooses startups creating technology solutions to aid in enhancing the financial health as well as capabilities of LMI segments. These could be solutions that utilize alternative data, new technologies, and open access platforms to help the LMI segments earn more, save better, minimize financial shocks, access low-cost capital, become employable, and create wealth, Inc 42 cited reporting company’s official statement.
The programme aims to build knowledge and help innovation, as well as entrepreneurial activity, improve livelihood and financial inclusion for LMI. By taking this move, CIIE-led programme forms and disintegrates resources that aid startups, as well as entrepreneurs, receive the precise tools, knowledge, funding, and access to examine markets to assist in developing inclusive solutions.
In the previous year, global banking and financial company, JP Morgan partnered with IIMA-CIIE to establish Financial inclusion Lab of around $9.5 million. The plan was launched at ascertaining and reinforcing early-stage fintech companies in India.
As part of the partnership, the fin-tech startups will have access and employment of apt financial products as well as services like credit, savings and financial support for LMI niche which bags $2-$10 per day.
“Start-ups are often unaware of the specific user needs, design elements, and distribution models that they should consider while solving problems for the underserved LMI segments. A one-size-fits-all solution deployed ends up being irrelevant to the customers and drains the start-up’s limited resources. The need to reimagine such solutions inspired the setup of the Financial Inclusion Lab,” Inc42 cited the company’s official statement.
The US-based financial provider firm renders nearly $7 million over four years in this programme. It is reportedly considered the largest open-handed contribution made by the global firm, JP Morgan. Other philanthropists who have contributed to the initiative are Michael and Susan Dell Foundation and Bill and Melinda Gates Foundation.