Kerala FinTech Policy 2024: Paving the Way for Innovation and Growth

BY PAVANCHKUMAR NEERAJ PARTHIV BALAKRISHNA

Contents
1)Preamble
2)Objectives
3)Fintech Initiatives
4)Creating an Enabling Ecosystem
5)Funding Support
6)Incentives
7)Governance Mechanism
8)Annexures
Preamble

Overview Attract investments

and create a
Position Kerala as a conducive
leading FinTech environment for
destination. startups.
 Kerala, while not steeped in centuries of financial legacy like
Kerala’s Tamil Nadu, has steadily blossomed into a vibrant financial hub,
boasting over 18,000 active cooperatives serving 25 million
legacy as members and attracting over USD 12 billion in foreign exchange
remittances annually. Its pioneering microfinance institutions,
Financial thriving IT sector, and government initiatives fostering Fintech
innovation, coupled with a tech-savvy population and
Hub commitment to financial inclusion, position Kerala as a rising
star poised to shape India's financial future, with a projected
Fintech investment of over INR 1,000 crore by 2025.
Inherent advantages of Kerala
Strong talent pool.

Robust digital infrastructure.

Supportive policies.

High mobile banking adoption.

Vibrant entrepreneurial ecosystem.

Need for Policy
Propelling Kerala's FinTech Revolution :

Explosive digital adoption with internet and mobile banking penetration exceeding 90%.

FinTech as an engine for financial inclusion addressing challenges faced by underbanked

populations.

Kerala's potential attracting significant VC investments and global recognition .

Policy imperative for building a conducive regulatory framework, bridging talent gap,
implementing cybersecurity measures, and fostering collaboration.
 Targets FinTech firms using IT Covers a wide range of May focus on specific areas
to drive innovation in financial activities from payments to relevant to Kerala like rural
services and promote financial data analytics and investment finance and MSME solutions.
inclusion. management.(see Table-1)

Scope

Emphasizes talent
development, regulatory clarity,
and ecosystem development.
 Category Subcategories (Examples)
Payments, Clearing & Digital wallets, mobile payments, UPI-based
Settlement platforms, QR code payments
Deposits, Lending & Peer-to-peer lending, robo-advisory, digital
Capital Raising wealth management
InsurTech platforms, supply chain finance,
Market Provisioning
Table 1 - Investment Management
embedded finance solutions
Robo-advisors, algorithmic trading platforms,

FinTech Scope Data Analytics & Risk

thematic investment
Fraud detection, credit scoring models, AI-
Management powered risk management
Cryptocurrency exchanges, digital asset
Exchanges and Markets
management platforms
InsurTech platforms, online claim settlement
Insurance
solutions
Global Capability FinTech-focused captive centers, IT and ITES
Centers/IT & ITES firms for FinTech in Kerala
2)Overview
2.1 Vision
Vision: Transform Kerala into a leading global destination for FinTech firms by 2025.

2.2 Mission
Financial Inclusion and FinTech Adoption:

Objective: Enhance financial inclusion for diverse segments, especially the unbanked, through tailored FinTech
solutions.

Strategy: Drive adoption by promoting digital literacy, awareness, and collaboration with traditional financial
institutions.
ONE-STOP FINTECH SUPPORT INITIATIVE: ESTABLISH A PROGRAMS: PROVIDE MENTORSHIP,
SYSTEM: CENTRALIZED FINTECH HUB FOR INCUBATION, AND ACCELERATORS,
REGULATORY APPROVALS AND CONNECTING FIRMS WITH
BUSINESS SUPPORT. INVESTORS.
Seamless Financial Transactions:

Goal: Promote secure and efficient digital payment platforms.

Impact: Enable seamless transactions, fostering economic activity.

Approach: Streamline regulatory frameworks for smooth operationalization .

FinTech Knowledge Collaboration: Strengthen Infrastructure: Establish Education: Develop training
Ecosystem: industry-academia ties FinTech centers and labs for programs for a skilled
through research and talent development and FinTech workforce.
internships. research.
 Strategy: Attract top Global Reach:
Investment: Bridge
talent through Partner globally to
FinTech Talent talent gaps through
competitive salaries attract and retain
Development: skill development
and growth international FinTech
programs.
opportunities. talent.
 Development: Build robust
Next-Generation FinTech digital infrastructure,
Infrastructure: including broadband and
data centers.

Innovation: Invest in
Security: Implement
emerging technologies like
reliable cybersecurity
blockchain and AI for
measures to protect
future FinTech
financial data.
advancements.
Goals: Become the leading FinTech startup state:
Propelling Exceed 30% growth in new startups by 2024.

Kerala's Nurture a thriving ecosystem: Attract 500+

FinTech FinTech firms across diverse segments by 2024.
.
Leadership Achieve 30% CAGR growth: Exceed
traditional finance growth in the FinTech sector.
Building a World-Class FinTech Hub:

Establish a state-of-the-art FinTech Hub/Lab: Exceed 1 million square feet by

2024.

Equip the hub with advanced technology and support services: Attract
investments and partnerships.

Transform the hub into a global magnet for FinTech: Establish strong
international recognition.
Skill Development and Knowledge Ecosystem:

Develop 5+ FinTech Skill Centres: Collaborate with premier institutes and private
firms by 2024.

Establish FinTech Centres of Excellence: Provide specialized training, research,

and support.

Integrate FinTech curriculum and training programs: Equip the workforce for
future needs.
Inclusive Financial Future:

Increase financial inclusion by 25% by 2024: Focus on unbanked and underserved

populations.

Develop FinTech solutions for marginalized communities: Address specific needs

and challenges.

Bridge the digital literacy gap: Empower citizens to participate in the digital
financial ecosystem.
 Forge strategic
partnerships with Actively participate in Position Kerala as a top-
leading global FinTech international events: ranked FinTech
Global Collaborations
hubs: Accelerate Showcase Kerala's destination: Attract
and Recognition:
knowledge sharing, potential and establish investments and talent
investments, and global presence. globally.
collaborations.
 To propel Kerala's FinTech surge, we'll cultivate a
3) Fintech nurturing ecosystem. Building on existing efforts in
skills, education, and infrastructure, we'll empower
Initiatives startups, bridge the talent gap, and unlock new avenues
for financial inclusion.
3.1. Kerala FinTech Cell
To foster a vibrant FinTech ecosystem, the Government of Kerala has established the
Kerala FinTech Mission (KFM). This dedicated unit will undertake key initiatives for
promotion, facilitation, and advisory support, including:

Empowering Startups:

Encourage participation of FinTech startups, especially early-stage companies, in

national and international events like conferences, hackathons, and exhibitions.

Offer mentorship and incubation programs to nurture promising startups and

bridge the talent gap.
 Organize regular
Support research and
engagements with leading Partner with relevant Conduct annual FinTech
development in
FinTech hubs like associations like awards and industry
Global Collaborations: collaboration with
Singapore, London, and NASSCOM and FinTech Ecosystem Development: forums to recognize
universities and research
Dubai to exchange Kerala to promote Kerala's leading players and
institutions to drive
knowledge and attract FinTech potential globally. stimulate innovation.
cutting-edge solutions.
investments.
Policy Advocacy : Represent the FinTech sector in interactions with the Government of India,
regulators, and other stakeholders to advocate for supportive policies .

Facilitation Services : Provide location advisory, business registration assistance, and support
in navigating regulatory approvals and clearances.

By undertaking these proactive initiatives, the KFM will create a thriving and supportive
environment for FinTech firms to flourish in Kerala, promoting innovation, financial inclusion,
and economic growth.
3.2 FinBlue
The Government of Kerala, in collaboration with the
Ministry of Electronics and Information Technology
(MeitY), Government of India and Software Technology
Parks of India (STPI), set up FinBlue
Thiruvananthapuram - a Centre of Excellence for FinTech
in Thiruvananthapuram in 2022. In 2023, FinBlue
conducted Pitchfest 2.0, where it received over 220
applications from startups and selected 15 innovative
ventures focused on microfinance, fisheries technology,
agricultural financing, and risk management solutions.
3.3Development of Kerala as a FinTech
Hub

Kerala, with its strategic location,

supportive government policies, and
skilled workforce, has emerged as a
promising contender in the Indian
FinTech landscape. Here's a breakdown
of the key factors driving its
development:
Its proximity to the Middle East and
Situated at the southernmost tip of Southeast Asia makes it ideal for
India, Kerala offers easy access to serving these high-growth FinTech
international markets and trade routes. markets.

Strategic Location:
 Talented Workforce:
Supportive Government Policies:
Kerala boasts a highly literate and educated
The Kerala government has implemented various
population, with a large pool of talent skilled in IT,
initiatives to foster FinTech growth, including the
finance, and other relevant fields.
establishment of FinTech parks and incubation centers.
The state's focus on education and skill development
Tax benefits and regulatory ease are also attracting
ensures a steady pipeline of future-ready FinTech
startups and established players to the state.
professionals.
Robust Infrastructure:
Kerala has a well-developed IT infrastructure, with high-
speed internet connectivity and reliable data centers.
This robust infrastructure forms the backbone for FinTech
innovation and operations.

Thriving Startup Ecosystem:

Kerala's startup ecosystem is vibrant, with several promising
FinTech startups emerging in recent years.
These startups are disrupting traditional financial services
and contributing to financial inclusion in the state.
 Conducive Regulatory
Environment:
The Indian government's focus on
promoting FinTech has led to a more
relaxed regulatory environment,
creating a favorable climate for
FinTech businesses to operate in .
Kerala is actively involved in shaping
FinTech regulations at the state level,
ensuring a balanced approach that
fosters innovation while protecting
consumers.
Growing Demand for Fintech
Solutions:
The demand for FinTech solutions is
rapidly growing in India, driven by
factors such as increasing smartphone
penetration and financial awareness.
Kerala is well-positioned to cater to
this demand with its innovative
FinTech offerings.
 The Government of Kerala is committed to promoting digital
payments by establishing Digital Payment Zones across the
state in a phased manner. This initiative aims to expedite the
adoption of FinTech solutions by encouraging the use of
various digital payment modes, including UPI, Mobile Wallets,
3.4. Promoting Point of Sale (PoS), and Micro-ATMs.

Digital Key Objectives:

Payment Zones Acceleration of FinTech Adoption: The Digital Payment Zones
will serve as a catalyst for the widespread adoption of FinTech
in the State of solutions in Kerala.

Kerala Transaction Diversity: The government will promote digital

payment modes, such as UPI, Mobile Wallets, PoS, and Micro-
ATMs, for a range of transactions, including C2G
(Consumers/Business to Government), G2C (Government to
Consumers), B2C (Business to Consumers), and C2B
(Consumers to Business). These transactions will encompass
utilities, transportation, taxes, and various goods and services.
Implementation Strategy:

Pilot Project: The initiative will commence with the development of a Digital Payment Zone in Thrissuras a pilot
project.

Collaboration with FinTech Ecosystem: The government will collaborate with local FinTech companies, startups,
and stakeholders to ensure the effective implementation of digital payment solutions within the designated zones.
Awareness Campaigns: To educate and encourage citizens, businesses, and government entities to embrace digital
payment methods, the government will conduct awareness campaigns highlighting the benefits and convenience
of FinTech solutions.
Inclusive Approach: The Digital Payment Zones will cater to a diverse range of transactions, ensuring inclusivity
and accessibility for all segments of society.
3.5 Kerala
Knowledge To propel FinTech beyond Trivandrum, Kerala will
establish Kerala Knowledge Parks (KKPs) in

Parks (KKPs): strategically chosen Tier 2 & 3 cities. These KKPs will
bridge the geographic divide by offering:

Fostering State-of-the-art FinTech infrastructure: Equipped with

Inclusive plug-and-play office spaces of various sizes, catering to
startups, established companies, and everything in
FinTech between. These KKPs will be spread across 5-10 acres in
well-connected locations, ensuring ease of access and
Growth efficient operations.
 Dedicated FinTech innovation labs:
Fostering collaboration, experimentation,
and the development of cutting-edge
solutions tailored to Kerala's unique
needs and industries. Imagine
"hackathons" focused on local challenges
like coconut farming or microfinance!
Robust and reliable utilities: Failsafe
power and communication infrastructure
with redundancies will guarantee
business continuity, a crucial factor for
FinTech operations. This commitment to
resilience will build trust and attract
investment.
Nurturing local talent: KKPs will partner with educational institutions Focus on local strengths: Leverage Kerala's existing strengths in IT,
and training providers to develop a skilled workforce in FinTech- tourism, and Ayurveda to develop niche FinTech solutions targeted at
related fields. This ensures a readily available talent pool for these sectors. Imagine blockchain-powered medical tourism platforms
companies operating within the KKP. or AI-driven coconut yield optimization tools!
Beyond infrastructure: Creating a vibrant
FinTech ecosystem
requires more than just
facilities. Kerala will also
need to:
Attract investments: Develop a supportive Foster a collaborative By implementing these
Implement targeted regulatory environment: culture: Encourage strategies, Kerala can
marketing strategies and Streamline regulations knowledge sharing, transform the KKPs into
attractive incentive and create a welcoming mentorship, and thriving hubs for FinTech
packages to lure FinTech atmosphere for networking opportunities innovation, driving
companies and investors innovation without among FinTech players inclusive growth and
to the KKPs. compromising essential within the KKPs. economic prosperity
consumer protections. across the state.
3.6 Kerala FinTech Registry: Fostering
Collaboration and Growth

1. Tracking and Monitoring Progress:

The registry will provide a comprehensive overview of the Kerala FinTech landscape, enabling the state government to track the growth, progress, and impact of
FinTech firms.
2. Facilitating Collaboration and Networking:

The registry will serve as a common platform for FinTech players in Kerala to connect, share knowledge, and explore collaboration opportunities.

This can foster a vibrant ecosystem where startups, established companies, and other stakeholders can learn from each other and drive collective growth .

3. Enhancing Transparency and Trust:

The registry will provide consumers with easy access to information about FinTech firms in Kerala, including their areas of expertise, regulatory compliance
status, and contact details.
This transparency will build trust and confidence in the FinTech sector, encouraging wider adoption of innovative financial technologies .
Envisioning the Kerala FinTech Registry:

The Kerala FinTech Registry can be modeled after successful

examples from other countries, such as the UK FinTech Registry or
the Australian Securities and Investments Commission's FinTech
Regulatory Sandbox.
It can leverage technology to provide a user-friendly interface for
data access, search, and filtering.
The registry can also be integrated with other government platforms
and databases to streamline information sharing and regulatory
processes.
 Building a thriving FinTech ecosystem in Kerala requires not just infrastructure and policies, but also a skilled

3.7 Skill workforce ready to innovate and drive the sector forward. Here are some initiatives Kerala can implement to
foster talent development and education in the context of FinTech:

Development &
Education
Infrastructure
Initiatives for 1. Specialized FinTech Universities and colleges: Private training institutes: Online platforms: Utilize

FinTech in Kerala
Programs and Courses: Introduce undergraduate
and postgraduate
programs, certificate
courses, and diplomas in
FinTech, covering areas
like Blockchain, AI in
Finance, Cybersecurity,
and Regulatory
Compliance.
Partner with industry
leaders to offer short-
term bootcamps and
training programs
focusing on specific
FinTech skills like cloud
computing, data
analytics, and FinTech
product development.
online learning platforms
like MOOCs (Massive
Open Online Courses) to
offer accessible and
flexible FinTech courses
for diverse learners.
2. Industry-Academia Collaboration:

Internships and apprenticeships: Create programs where students can gain practical experience in FinTech companies.

Joint research projects: Facilitate collaboration between academia and industry on research initiatives, promoting knowledge transfer and innovation .

Guest lectures and workshops: Invite FinTech professionals to universities and colleges to share their expertise and insights with students .

3. Talent Development Initiatives:

FinTech bootcamps and hackathons: Organize events to identify and nurture young talent, providing opportunities for problem-solving and showcasing innovative
FinTech ideas.
Mentorship programs: Connect experienced FinTech professionals with aspiring entrepreneurs and developers to provide guidance and support.

FinTech scholarship programs: Offer scholarships and financial aid to support education and training for deserving students from diverse backgrounds.

4. Skill Development
Infrastructure:
5. Focus on Future-Ready Skills:
FinTech Labs and Incubation
Centers: Establish physical and
virtual spaces equipped with the
latest technology and resources
for FinTech startups and
individuals to experiment,
prototype, and develop their
ideas.
Go beyond technical skills:
Emphasize the development of
soft skills like communication,
critical thinking, collaboration,
and problem-solving, crucial for
success in the FinTech
workforce.
Digital Libraries and Knowledge
Centers: Create online and
physical repositories of FinTech
resources, research papers, case
studies, and industry reports for
accessible knowledge sharing.
Prepare for emerging
technologies: Integrate training
on cutting-edge technologies like
AI, blockchain, and quantum
computing to prepare future
professionals for the evolving
FinTech landscape.

By implementing these initiatives, Kerala can cultivate a highly skilled and competent FinTech workforce,
creating a competitive advantage and attracting FinTech businesses to the state. Remember, talent is the
lifeblood of any sector, and investing in FinTech education and skills development will be crucial for
Kerala's long-term success in this dynamic and promising field.
3.8 Encouraging FinTech Adoption in
Kerala
Strategies for Widespread Usage:

Kerala has the potential to become a FinTech powerhouse, but widespread adoption among
its citizens is crucial for its success. Here are some strategies to encourage FinTech adoption
in Kerala:

1. Raising Awareness and Public awareness campaigns:
Building Trust: Launch targeted campaigns in
local languages (Malayalam,
regional dialects) through
various media channels – TV,
radio, print, social media – to
educate the public about
FinTech benefits and
applications.
Financial literacy programs:
Organize workshops and
seminars in rural and urban
areas to educate people about
basic financial concepts and
how FinTech can simplify
their financial lives.
Success stories and
testimonials: Showcase
success stories of individuals
and businesses using FinTech
solutions to overcome
financial challenges or
improve their lives. This will
build trust and encourage
others to adopt similar
solutions.

Localization and vernacular support:
Develop FinTech apps and platforms
2. Addressing Accessibility and with user interfaces and content in
Inclusion: Malayalam and other local
languages to cater to diverse
linguistic needs.
Cashback and reward programs:
Offer attractive cashback or loyalty
3. Incentivizing Usage and Building
rewards for using FinTech solutions
an Ecosystem:
like digital payments, mobile
wallets, and online transactions.
Offline alternatives and digital
literacy support: Provide alternative
channels like agent banking, kiosks,
and assisted services for those with
limited digital literacy or internet
access.
Merchant adoption initiatives:
Encourage merchants to accept
digital payments by providing
incentives, technical support, and
training on handling digital
transactions.
Focus on rural areas: Develop
targeted initiatives and partnerships
with rural communities to address
their specific needs and promote the
adoption of FinTech solutions
relevant to their livelihoods, like
microfinance or agricultural
technology.
Cross-sectoral partnerships:
Collaborate with banks, government
agencies, private companies, and
NGOs to create a robust FinTech
ecosystem offering diverse and
accessible solutions.
Skill Development & Education
Infrastructure Initiatives
Specialized FinTech programs and courses:
Undergraduate/postgraduate programs, certificate courses, diplomas,
bootcamps, online platforms.

Industry-academia collaboration: Internships, joint research

projects, guest lectures, workshops.

Talent development initiatives: FinTech bootcamps/hackathons,

mentorship programs, scholarships.

Skill Development Infrastructure: FinTech Labs & Incubation

Centers, Digital Libraries & Knowledge Centers.

Focus on Future-Ready Skills: Soft skills, emerging technologies

(AI, blockchain, quantum computing).
Encouraging FinTech Adoption in Kerala:
• Raising Awareness and Building Trust: Public awareness campaigns,
Raising financial literacy programs, success stories.

• Addressing Accessibility and Inclusion: Localization, offline

Addressing alternatives, rural focus.

• Incentivizing Usage and Building an Ecosystem: Cashback programs,

Incentivizing merchant adoption initiatives, cross-sectoral partnerships.

• Ensuring Security and Consumer Protection: Cybersecurity

Ensuring awareness, strong regulations, grievance redressal mechanisms.

• Leveraging Emerging Technologies: Explore blockchain and AI

Leveraging applications, promote mobile-first solutions.
4) Creating an Enabling Ecosystem
4.1 Power Infrastructure: Kerala's power surplus status and
renewable energy leadership
ensures ample electricity.
Propose dedicated MoUs with
KSEB for uninterrupted power
supply to FinTech firms exceeding a
threshold (e.g., 5 MVA or Rs. 50
crore investment).
Focus on developing FinTech parks
and last-mile connectivity for
reliable power access.
4.2 Connectivity Highlight Kerala's existing
Infrastructure: well-developed OFC network
and strategic submarine cable
landings (like Kochi) for
global connectivity.
Emphasize continuous Mention initiatives like KFON Briefly touch upon embracing
investments in expanding fiber for bridging the digital divide future-proof technologies like
optic network and attracting and promoting inclusive 5G and edge computing.
more submarine cable FinTech growth.
landings.
4.3 IT Infrastructure & Cybersecurity:

Robust Cybersecurity Framework:

Implement stringent data protection laws, regular vulnerability assessments, and incident
response protocols.
Foster cyber hygiene through awareness campaigns, training programs, and collaboration with
experts.
Invest in building a skilled cybersecurity workforce and R&D centers.

Encourage knowledge sharing and international collaboration for staying ahead of evolving
threats.
4.4 Single Window Streamlining FinTech Propose a dedicated Develop a user- Clearly define and Establish a dedicated
Clearances: Growth: FinTech node for friendly online portal standardize facilitation team for
expediting clearances for application procedures, timelines, guidance, support,
from various submission, progress and fees for each and resolving
government agencies. tracking, and clearance. bottlenecks.
consultations.

Implement Benefits: Reduced

continuous time and costs,
monitoring and enhanced
improvement transparency,
mechanisms with improved investor
feedback loops. confidence, and
accelerated
innovation.
4.5 Administrative & Labour Support:

Fostering a Thriving Ecosystem:

Establish a dedicated FinTech cell within the government bureaucracy for administrative support.

Develop user-friendly online platforms for regulatory clearances, taxes, and government services.

Invest in skill development programs to build a talent pool equipped with FinTech needs.

Consider adapting labor laws for flexible work arrangements and attracting foreign talent.

Encourage competitive compensation packages, attractive employee benefits, and streamlined immigration processes.

Foster collaboration and knowledge sharing through industry-government dialogues, mentorship programs, and knowledge-
sharing initiatives.
4.6 Relaxation in Planning Permission:

Simplifying Growth for FinTech Hubs:

Establish a fast-track channel for construction and operational permits within designated FinTech zones.

Develop pre-approved building plans and implement single window clearance for faster approvals.

Consider adapting zoning regulations for mixed-use development, increased building heights, and green
building practices.
Offer tax breaks, subsidies, and grants for infrastructure development within the zones.

Encourage public-private partnerships for world-class infrastructure and attracting leading players.

Ensure responsible development with strict environmental regulations and green building initiatives.
 Ensure
Celebrate Develop
Promote Prioritize clean competitive
Invest in Kerala's Invest in arts, childcare
healthy and green salaries and
expanding and cultural music, and facilities,
lifestyle cities, eco- benefits,
4.7 Ease of A Magnet for upgrading heritage and cultural events educational
choices and friendly affordable
Living: FinTech Talent: healthcare embrace for leisure and institutions,
accessible tourism, and housing
facilities across diversity for an community and family-
mental health work-life options, and
the state. inclusive engagement. oriented
support. balance. cost-effective
environment. activities.
transportation.
5)Funding Support
5.1 Kerala Startup Seed Grant Fund:

Highlight the fund's purpose: providing early-stage

financial support to promising FinTech startups.

Mention key benefits: up to Rs. 15 lakhs, focus on

innovation, reduced pressure, ecosystem growth.

Showcase success stories of funded FinTech startups.

5.2 Kerala Emerging Sector Seed Fund (TNESSF):

Introduce TNESSF as an additional funding option for FinTech

companies beyond the initial seed stage.

Explain its features: larger scale funding (Rs. 3-10 crore), sector
agnostic, focus on growth, flexible investment options, government
backing.

Emphasize eligibility criteria for FinTech companies.

Position TNESSF as a complementary resource for scaling and

achieving sustained growth.
5.3 Igniting Innovation: Digital Accelerators:

Shift focus to fostering rapid growth through mentorship and collaboration.

Introduce the role of digital accelerators as launchpads for FinTech startups.

Highlight key benefits: curated programs, expert mentorship, networking, resources,

global exposure.

Showcase prominent FinTech accelerators in Kerala: FinTech Valley Kerala, KSUM

Accelerate, CIIE Kochi.

Emphasize their contribution to rapid innovation and growth in the sector.

5.4 State Innovation Fund:

Provide details about the fund's purpose and eligibility for FinTech startups.

Showcase success stories of FinTech startups funded by the State Innovation

Fund (if applicable).

5.5 Additional Funding Avenues (Optional):

Briefly mention angel investors, venture capitalists, and global funding platforms
as alternative sources.

Provide resources or guidance for accessing these avenues.

6) Incentives

Higher Incentives for

Showcase Kerala-based
FinTech success stories Balanced Regional
6.1 Fintech Startups:
(Accord Fintech,
Aceware FinTech, etc.).
Table: Compare key
Tier 2 & 3 Cities: Up to
incentives across tiers
INR 20 lakh seed
(financial support, tax
Development: funding, faster
benefits, infrastructure,
approvals, lower
etc.).
operational costs.

Subsidies and Grants: Financial Tools and Infrastructure and

Tax Benefits: Tax
Co-working space Services: Soft loans, Ecosystem Support:
6.1.1 Operating holidays, GST
subsidies, operational angel investors, Fintech hubs, plug-and-
Expenses Support: exemptions, startup tax
cost reimbursements, crowdfunding platforms, play offices, talent
filing assistance.
infrastructure grants. mentorship. development programs.
6.1.2 Fintech Highlight pre- Reduce operational 6.1.3 Marketing Access KSUM's 70% Leverage KSUM's Target local
Accelerator: packaged bundles costs and speed up Support: product video subsidy network and Kerala's audiences with
offering funding, growth with tailored to tell your story. $8 billion FinTech culturally relevant
mentorship, co- support. market. campaigns anddigital
working space, and strategies.
more. Build trust and
loyalty through
community-driven
initiatives.
 6.1.4 SGST Claim up to 100% 6.1.5 Employment Tiered Opportunities: Benefits across Tiers: 6.1.6 Skill
Reimbursement: SGST reimbursement Assistance: University-industry Higher concentration Development
to increase partnerships, in Tier 1, growing Support:
profitability and boost incubator programs, opportunities in Tier
growth. job postings. 2, lower costs in Tier
3.

Government-funded
programs on
Blockchain, AI,
Cybersecurity, and
Data Analytics.
6.2 Structured Package of Incentives:

Highlight tiered incentive packages for seed funding, regulatory approvals, co-working space subsidies, tax holidays, soft loan
interest rates, and government procurement preference.

6.3 Risk Capital Providers:

Mention seed funds like KSUM, established VCs like Accel, FinTech-focused platforms like Fintech Valley, angel networks, and
incubation programs.

6.3.1 Fintech Listing Fees Support:

Up to 70% reimbursement on listing fees to ease market access.

 7.1 Fintech Governing Council:

Composition:

Chairman: Honorable Minister for Industries - provides high-level guidance and

aligns with state goals.

Vice-Chairman: Chief Secretary - oversees implementation and facilitates inter-

departmental coordination.

7) Governance Core Members: Government secretaries and heads of relevant departments:

Industries, Finance, IT, MSME, Guidance, KSIM, FinBlue director.

Mechanism Committees and Sub-Committees:

Regulatory Committee: Streamlines regulations and compliance for FinTech

companies.

Skills and Development Committee: Addresses talent needs and skill gaps in the
sector.

Research and Innovation Committee: Drives research initiatives and promotes

cutting-edge technologies.

Infrastructure and Investment Committee: Focuses on essential infrastructure and

attracting investments.
 Kerala Startup Mission
Kerala Startup Mission
Streamlined process: (KSIM): One-stop shop Benefits: Provides
(KSIM): Primary
7.2 Sanctioning Channels your startup's 7.3 Implementing for implementing hassle-free support and
authority for sanctioning
Authority: application for support Agency: incentives, streamlining ensures smooth
most FinTech
into tangible results. processes, and turning execution of initiatives.
incentives.
policy into action.
 8) Annexures

List of City Tier Tier 1 Tier 2 Kollam, Tier 3 Kannur,

Corporations/Municipalities in
Tier 1, Tier 2, and Tier 3 Cities
in Kerala
Corporations/Municipalities
Thiruvananthapuram, Kochi Alappuzha, Kottayam, Wayanad, Calicut, Mahe,
Pathanamthitta, Kozhikode, Thalassery, Vatakara,
Thrissur, Palakkad, Perinthalmanna, Iritty,
Malappuram Sultanbathery, Mananthavady,
Kondotty, Perumbavoor,
Muvattupuzha, Chengannur,
Changanassery, Tiruvalla,
Adoor, Paravoor, Punalur,
Kottarakkara, Kayamkulam
CONCLUSION