IIT Alumni Council invites startups to join next-gen banking platform under MegaFund initiative

  • The Council is working to create an ecosystem conducive to next-generation banking around a smartphone interface, smart contracts, digital currency, digital lending, borderless deposit mobilization and hyper-security.
  • New regulatory paradigms are needed for financing autonomous vehicles and machines based on robotics, artificial intelligence, autonomous operations and shared ownership.
  • Digital twins and NFTs will enable remote exploitation and cross-border ownership of assets.
  • India can lead due to the regulatory sandbox and licensing framework of small financial banks.

NEW DELHI, May 18, 2022 /PRNewswire/ — IIT Alumni Council invites applications from banking and fintech start-ups to be part of its Next Generation Banking Platform initiative. The platform proposes to pilot new paradigms in MSME financing within the framework of the regulatory sandbox or the licensing framework for small financial banks of the Reserve Bank of India. The platform and associated ecosystem components could be partially supported by equity financing from the MegaFund consortium.

“Digital and Neo banks have disrupted conventional banking. The old paradigms of a physical bank branch and hundred-page loan agreements will soon cease to be relevant. India’s largest bank has 25,000 bank branches and 250,000 people the needs of the MSME sector Smart contracts, cross-border transactions, digital loans, non-fungible tokens (NFTs), etc. are now proven technologies Yet enabling wide availability of credit for the sector of MSMEs remains an unresolved issue, working to create an enabling ecosystem and next-generation banking platform initiative to address these challenges,” said Ravi SharmaChairman and Chief Volunteer of the ITI Council of Alumni.

“There are areas in MSME financing that traditional banks can’t do and neo-banks won’t. Take the example of coal generation. Future growth could come from automated robotic operations based on digital twins and artificial intelligence.These robots may be owned by hundreds of owners via fragmented ownership across countries.They should be operated by remote operators using global equipment modules.The complexity of such a financing makes it very difficult for a traditional bank or a neo-bank. It is also not the comfort zone of NBFCs and the biggest player in this space is insolvent. Filling this void is essential for the success of the Indian manufacturing. And startups are a possible route to new technologies and therefore new solutions,” adds Dr. Rakesh Setha prominent investment banker, IIT alumnus, and member of the Next Gen Banking Task Force.

To be eligible to participate in the banking platform consortium, the start-up must be incorporated, registered with Startup India, have raised at least Rs one crore shareholders (which must include at least one ITI alumnus or alumni-managed entity) and have provisional or audited accounts for the 2021-22 financial year. Applications meeting these five eligibility conditions can be sent to [email protected].

About the ITI Alumni Council

IIT Alumni Council is the world’s largest alumni group among the twenty-three IITs and partner universities. The ITI Council of Elders aspires to catalyze india technological renaissance. The Council continues to mobilize the considerable resources – both financial and technological – of the global ecosystem of ITI alumni to catalyze global scale interventions in the social sector by India. Through such initiatives, the ITI Council of Alumni intends to act as a network and as a bridge between diverse providers of knowledge, wealth, information, wisdom, ideas, expertise and entrepreneurship. to promote appropriate technological solutions to known social challenges at the national level. These solutions are then marketed as part of seed and venture capital. The long-term goal is to create a robust and self-sustaining deep science ecosystem, fueled by venture capital and supported by financial markets. For more information on the ITI Council of Elders, please visit: www.iitalumnicouncil.org

About the NextGen Banking Initiative Selection Process

Startups are pre-selected by invitation, nomination or application. Applications can be sent to [email protected] and must include a detailed history of the startup, proof of meeting the eligibility criteria, and details of any IIT alumni associated with the business. Applications will be assessed by the MegaScope team, and shortlisted candidates will be invited for detailed interactions with the Council’s Next Gen Banking Task Force, which includes senior bankers, technocrats, public policy experts and private equity investors. risk.

SOURCE IIT Elders Council

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Michael C. Sumner