Kerala Bank Joins Hands with KSUM for Fintech Innovation Hub

KOCHI:
Banks should be prepared to face emerging challenges when the sector is witnessing rapid strides in IT technology, Chief Minister Pinarayi Vijayan said today.

Such readiness can enable the state’s startup ecosystem to turn professional threats into opportunities, he said, inaugurating an IT Conclave organized by Kerala State Cooperative Bank, generally called Kerala Bank.

The session saw Kerala Bank inking an important agreement with Kerala Startup Mission (KSUM) to set up a Fintech Innovation Zone with the aim of promoting digital innovation in financial institutions and the state’s cooperative banking sector. The MoU, valid for three years, was signed by Kerala Bank CEO Jorty M. Chacko and his KSUM counterpart Anoop Ambika at the event in suburban Edappally.

Already, authorities have initiated work towards creating innovative technological systems, including IT integration and core banking systems. Customers merit awareness about guarding themselves against increasing cases of online fraud, the Chief Minister pointed out.

“We must ensure data security. It is the responsibility of banks to create secure online systems,” he said. “The Security Operations Center has started activities in this direction. We need a guideline for innovative digitisation.”

Cooperatives Minister V.N. Vasavan termed the Fintech Innovation Zone as an “initial step” by Kerala Bank on its entering the startup scene.

Others present were Industries, Coir and Law Minister P. Rajeeve, NABARD Chairman K.V. Shaji and Kerala Bank President Gopi Kottamurikkal.

The bilateral cooperation is being realized to discover, nurture, and accelerate the growth of fintech startups.

Today’s agreement will enable Kerala Bank to set up a 1000-sqft space for a FinTech Innovation Hub at its IT Department premises in Kakkanad. Cohort-based FinTech Accelerator programs will be conducted to identify and support promising FinTech startups. Co-creation of digital banking solutions suiting Kerala Bank and the cooperative banking ecosystem will be encouraged. Overall, the MoU seeks to create a ecosystem conducive for FinTech innovation through mentorship, funding support and market access.

Kerala Bank will enable selected startups to undertake PoC (Proof of Concept) projects, provide mentorship support using experts from the banking as well as finance sectors, and provide access to the bank’s customer base besides infrastructure for pilot-testing.

KSUM will be responsible for setting up the FinTech Innovation Hub in Kochi and deploying the necessary human resources and other infrastructure. In addition, the Startup Mission will be responsible for designing and implementing accelerator programs, providing incubation, technical advice and investor relations to selected startups, and making existing KSUM support schemes such as innovation grants, seed loans and global market access available to startups.

A working group will be formed with representatives from both institutions, headed by the Kerala Bank Chief General Manager (IT), to coordinate the activities of this joint venture.