Karnataka govt announces Centre of Excellence in FinTech

PTI, Oct 21, 2024, 9:06 PM IST

Bengaluru: The Karnataka Department for Electronics, IT, BT and Science & Technology has announced the establishment of first of its kind Centre of Excellence (CoE) in FinTech in partnership with NSRCEL at IIM Bangalore.

The government vide order dated October 19 has announced the proposed CoE, that aims to accelerate the growth of FinTech in Karnataka by leveraging its thriving entrepreneurial ecosystem, facilitating innovation, and providing extensive support for startups in the financial technology sector, the department said in a release on Monday.

An estimated total cost of Rs 13.24 crore has been allocated for the CoE’s operations over a five-year period. The incubation and acceleration programme costs are estimated at Rs 8.19 crore, while Rs 5.04 crore has been allocated for the skilling and training programmes, it said.

The Nadathur S Raghavan Centre for Entrepreneurial Learning (NSRCEL), IIM Bangalore’s non-profit business incubator, will lead the CoE as the Implementing Agency, the department said.

The CoE will drive innovation in FinTech through startup incubation, acceleration, skill development programmes, and sandbox environments for real-world testing, including regulatory sandboxes and certification programmes, it added.

The Karnataka Innovation & Technology Society (KITS) under the Department of Electronics, IT, BT and S&T, Government of Karnataka, is providing financial support for this initiative.

“Karnataka’s tech ecosystem is taking a significant leap forward as we focus on fostering innovation and entrepreneurship in the dynamic realm of financial technology. This Centre of Excellence represents a crucial step in establishing Karnataka as the FinTech capital of India,” Minister for Information Technology and Biotechnology Priyank Kharge said.

“By leveraging the domain expertise of IIM Bangalore alongside comprehensive support for startups, we aim to not only accelerate the growth of FinTech ventures but also develop a skilled workforce ready to meet the demands of a digital economy. We are investing in the future of finance, and I am confident that this partnership will yield innovative solutions that propel our state and nation forward,” he said.

The establishment of the Centre of Excellence in FinTech marks a significant step in fostering innovation and entrepreneurship in Karnataka, reinforcing its position as a leader in financial technology and supporting the state’s broader digital economy goals, the department said.