On Saturday, Chief Minister MK Stalin inaugurated the development of Fintech City and Fintech Tower in Nandambakkam, Tamil Nadu. The state government has allocated INR 116 crore and INR 254 crore, respectively, for these projects.
The Fintech City is expected to attract investments of around INR 12,000 crore and create employment opportunities for 80,000 people. Meanwhile, the Fintech Tower, spanning 5.6 lakh square feet, aims to draw INR 1,000 crore in investments and provide jobs for 7,000 individuals.
According to a report from Times of India, CM Stalin expressed that these initiatives will offer growth prospects for the fintech sector and related industries.
The government has also announced incentives for companies investing more than INR 50 crore in Tamil Nadu. The aim is to attract fintech investors and businesses to the state. CM Stalin mentioned that the government has formulated the Fintech Policy 2021, with the goal of making Tamil Nadu a fintech hub by 2025.
To support this project, 56 acres of land have been allocated to provide state-of-the-art infrastructure facilities for both national and international BFSI (Banking, Financial Services, and Insurance) and fintech businesses.
CM Stalin expressed confidence that the fintech sector will bring prosperity to the state and contribute to its further development by integrating traditional banking and non-banking services with technology.
He noted that online banking has witnessed significant growth, particularly during the pandemic. The presence of fintech businesses in Tamil Nadu is a testament to the state’s advancement in the fintech sector, according to the CM.
The Indian fintech market has experienced rapid growth, and it is projected to reach a market opportunity of $2.1 trillion by 2030, as per Inc42’s State of Indian Fintech Report Q1 2023.
To further support the fintech sector in the country, the Reserve Bank of India (RBI) recently released default loss guarantee (DLG) guidelines for digital lending players, which are expected to boost the fintech ecosystem.
In recent developments, Australian fintech company Pepper Group announced a $150 million investment over the next four years to establish a fintech startup named Pepper Money in India. Additionally, lending tech startup Indifi Technologies raised $35 million in funding led by funds managed and advised by ICICI Venture.
