Finance and Technology seems to have finally agreed on a union. Federal Bank has recently tied up with Kerala based Startup Village to set up a ‘digital research laboratory ‘ at the incubator. The lab will provide space for young, vibrant minds to nurture their ideas for products in the financial and banking sector.
According to a statement given by Shyam Srinivasan, managing director & CEO of Federal Bank, to the ‘Express’, “The process has begun. We have received around 200 ideas and are in the process of filtering them. Around 78 ideas have already been shortlisted.”
The bank’s tech experts are religiously working towards filtering out the products. “Ideas which have the potential, scalable and withstand the testing environment will be nurtured at the Startup Village, which is the best thing happening at the moment in Kerala,” said Srinivasan.
The ideas for the financial and banking products will be nurtured at the ‘Startup Studio’ at the Startup Village. The first list of products is expected to be announced by the end of May and the programme would then start from June.
The Federal Bank has also committed to use the products developed in the programme after they pass all the necessary security and regulatory tests. The Aluva based bank wants the Startup Village to focus more on ideas and products related to mobile technology as it wants to tap this growing base of Smartphone users.
“The bank may even go ahead and fund some of these startup ideas itself. Normally, startups prefer angel/venture capital or private equity funding. From the bank’s perspective we cannot do conventional collateral-based model of financing for startups,” said Srinivasan.
“The bank is currently looking out for some out of the box solutions to fund these ideas and products”, he added.