Tamil Nadu CM launches Fintech City and Tower projects, boosting State’s fintech ambitions

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Tamil Nadu Chief Minister MK Stalin on Saturday laid the foundation stone for the Fintech City and Fintech Tower projects in Chennai. It is being built next to Chennai Trade Center.

Fintech City is established on 56 acres with investment potential of Rs 12,000 crore and proposed Creating job opportunities for about 80,000 people. It will feature international and national BFSI institutions. It will also have commercial, residential and social underpinnings with multimedia connectivity.

Fintech tower is constructed with a cost of Rs 254 crore, investment potential of Rs 1,000 crore and jobs for nearly 7,000 people. It will have a built-up area of ​​5.6 square feet with an auditorium that can seat 250 people.

FinTech City will complement the efforts of FinBlue, a fintech center of excellence hosted by STPI, Chennai, that identifies, nurtures, finances and scales fintech startups. The state government contributed ₹5.75 crore to the centre.

Tamil Nadu has a rich legacy in the financial services industry with the establishment of the first bank in the state, Madras Bank, which dates back to 1682. Dubbed the “SaaS Capital of India,” Tamil Nadu is now poised to evolve into a global financial technology hub bank.

India’s second largest economy, Tamil Nadu is home to 250 of the world’s top 500 financial institutions and more than 100 fintech startups, according to information available on the Guidance Tamil Nadu website.

The World Bank, Bank of America, Citi, Dawn and Bradstreet are some of the global BFSIs that have chosen to incorporate in Tamil Nadu.

At the Coimbatore Investors Meeting in November 2021, Tamil Nadu Chief Minister MK Stalin issued FinTech Policy 2021 to transform the state into a leading global destination for FinTech companies by 2025.

The policy seeks to support fintech startups in multiple ways, including reimbursement of 75% of operational expenses and 100% of SGST for three years excluding reimbursement of costs incurred for training and marketing.

Fintech startups now have multiple funding avenues, the policy said, including Tamil Nadu StartUp Seed Grants, Tamil Nadu Emerging Sector Seed Fund, Digital Accelerator under Yaadhum Oorae and Government Innovation Fund.