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The kingdom’s financial technology pioneers have linked up with Indian counterparts working in what many consider to be the Bollywood of FinTech.
The Bahrain Economic Development Board (EDB), the country’s investment promotion arm, has signed a Memorandum of Understanding (MoU) with the Maharashtra Government to provide a framework for co-operation between the two authorities to promote FinTech in their respective markets.
A senior delegation led by Dr Simon Galpin, the board’s MD, met with Shri S. V. R. Srinivas, IAS, principal secretary, Directorate of Information Technology, Government of Maharashtra.
This document was signed in line with the EDB’s aims of exploring greater synergies between India and Bahrain in the financial technology space and will last for an initial period of three years.
Simon said: “We see this agreement as a model for forging wider and deeper business ties between our two countries. This strategic partnership will introduce innovations that will further strengthen the landscape of the FinTech industry, which is widely regarded as the financial sector’s future, by enhancing traditional financial services delivery and technological innovations in financial literacy and education, retail banking and investment.
“Bahrain stands ready to learn from its close trading partner, whilst also sharing its own knowledge.”
Maharashtra, a state spanning west-central India, is best known for its fast-paced capital, Mumbai, formerly Bombay. This sprawling metropolis is the seat of the Bollywood film industry. It also has sites like the Gateway of India monument and cave temples at Elephanta Island. To the south is the rustic, beach-lined Konkan Coast. In the city of Pune, Aga Khan Palace is a memorial to Mahatma Gandhi.
It’s now making a big play in the world of FinTech. The vision is to foster next generation innovation that will enable financial empowerment and technological advancement across the entire financial services ecosystem to nurture globally competent FinTech firms.
The aim is to bridge the gap between start-ups, financial Institutions, technology vendors, incubators, accelerators and investors to accelerate deep technology innovation in the ecosystem.
Incubate at least 300 start-ups in next three years, although that figure has grown to 500 in recent months.
Facilitate venture capital funding for FinTech start-ups.
Be among the Top Five emerging FinTech hubs worldwide within five years.
With a gross domestic product (GDP) of $209bn, Maharashtra continues to be the country’s wealthiest region and the booming start-up ecosystem in the state is widely acknowledged.
A recent FinTech conference witnessed the participation of around 400 attendees and Maharashtra is currently home to more than 1,019 start-ups and already boasts a robust start-up ecosystem that is well-connected with investors, mentors and other ecosystem enablers.
Maharashtra government officials recently told reporters that they expect to ‘have at least 500 FinTech startups who are enabled, stable, have successful sizeable funding and are going to make India and Maharashtra proud’.
Under the MoU, the Government of Maharashtra and the EDB will support each other in promoting the FinTech environment education programmes, delegation visits and through the facilitation of cooperation between relevant parties such as financial institutions, universities and research institutions, technology experts and government agencies.
Shri S.V.R Srinivas, IAS, Principal Secretary, DIT said: “With this collaboration we stand at the frontier of a new future. We are going to work together to unlock a new generation of talent, creativity and innovation and be prepared for a future in which technology will be a game changer.”
The collaboration aims to identify new areas of growth within the financial services sector and explore innovative projects in areas such as digital and mobile payments, blockchain and distributed ledgers, big data, flexible platforms (APIs), AML, eKYC, amongst other new technologies.
Bahrain will be bringing notable knowledge into play too. It has long been a major home of finance in the GCC, and with the launch of Bahrain FinTech Bay, it has become one of the most concentrated FinTech ecosystems in the region, and a leading FinTech hub in the Middle East and Africa.
Additionally, with a dedicated FinTech unit, the Central Bank of Bahrain has devised and delivered a pro-innovation regulatory framework. This includes the region’s first onshore Regulatory Sandbox, established last year, which became a test-bed for FinTech start-ups.
The collaborative approach between Bahrain’s government and the private sector has been instrumental in the advancement of FinTech growth and activities. With financial services now accounting for 17 per cent of total GDP, Bahrain is said to also be committed to enabling innovators across the FinTech ecosystem.
