Fintech Valley Vizag, an initiative to promote investments in financial technology in Visakhapatnam by creating a sustainable ecosystem by AP Electronics and IT Agency (APEITA), is all set to get a shot in the arm with the Federal Bank deciding in-principle to set up a 500-seater back-end facility in the city.
The proposal was cleared at the recent meeting of Consultative Committee for IT (CCIT). The bank is expected to start its operations within two to three years. Sources told The Hindu that it will scale up the headcount to 1300 in phases.
IT Association of Andhra Pradesh president-elect Sridhar Kosaraju said the city needed the launching of operations by more banks and insurance firms to transform the city into a fintech hub. Among prominent players after inauguration of Fintech Tower at Rushikonda a couple of years ago, Paytm, Franklin Templeton and Conduent have launched their operations. Conduent, which has started its operations in a rented building, is being allotted entire space in the Millennium Tower now on verge of completing construction by the A.P. Industrial Infrastructure Corporation.
Franklin Templeton and its technical partner Innova Solutions have been allotted 40 acres near Rushikonda. They are now operating at Technology Hub (new block of Tech Mahindra.). WNS and Patra India, which have been allotted space at Tech Hub, are also expected to scale up their operations at their new BPM facilities.
Plug and play facilities
The government under the Designated Technology Park facility is scouting for new buildings to create plug and play facilities for new players. Federal Bank will be given space to start its operations in one such facility.
Welcoming the decision of Federal Bank to start facility in Visakhapatnam, Rushikonda IT Park Association vice-president O. Naresh Kumar urged Chief Minister N. Chandrababu Naidu and IT Minister N. Lokesh to convince Andhra Bank-home-grown bank to establish back-end office in the city.
He said the establishment of campus by HSBC had led to training of over 3,000 youngsters in fintech during the past one and half decade. IT Adviser J.A. Chowdary, during his recent visit to the city, said more players in fintech domain were evincing interest for investment in Visakhapatnam after creating a used case repository.
This was an offshoot of global hackathon wherein the startups were encouraged to solve problems faced by financial institutions.