Karnataka establishes Centre of Excellence in FinTech at IIM Bangalore

Karnataka establishes Centre of Excellence in FinTech at IIM Bangalore

The Karnataka government on October 21 announced the establishment of its first Centre of Excellence (CoE) in FinTech, in collaboration with NSRCEL (Nadathur S Raghavan Centre for Entrepreneurial Learning) at IIM Bangalore.

In a statement, the Department of Electronics, Information Technology, Biotechnology, and Science & Technology said the CoE aims to accelerate the growth of FinTech in Karnataka by leveraging the state’s thriving entrepreneurial ecosystem, fostering innovation, and providing comprehensive support to startups in the financial technology sector.

“NSRCEL, IIM Bangalore’s non-profit business incubator, will serve as the implementing agency for the CoE. The CoE will drive FinTech innovation through startup incubation, acceleration, skill development programs, and sandbox environments for real-world testing, including regulatory sandboxes and certification programs,” the department stated.

The CoE will support startups through a 12-month incubation programme, providing mentorship, infrastructure, and networking opportunities. It will also offer two 6-month online courses to upskill professionals in areas such as blockchain, digital payments, and lending. Startups will have access to API and regulatory sandboxes, enabling them to test financial solutions with support from industry and regulators. The CoE will also collaborate with BFSI, IT/ITES companies, regulators, and educational institutions to foster innovation and cross-sector partnerships.

Karnataka’s Minister for Information Technology and Biotechnology Priyank Kharge 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."

He further said, “This Centre of Excellence represents a crucial step in establishing Karnataka as the FinTech capital of India. By leveraging IIM Bangalore’s domain expertise and providing comprehensive support to startups, we aim to accelerate FinTech ventures and develop a skilled workforce ready to meet the demands of a digital economy. This investment in the future of finance will yield innovative solutions that propel both the state and the nation forward."

The state government has allocated Rs 13.24 crore for the CoE’s operations over five years. Of this, Rs 8.19 crore has been designated for the incubation and acceleration programmes, while Rs 5.04 crore will go toward skilling and training initiatives.