Barclays, a British financial institution, introduced its financial technology platform or fintech for a start-up company ‘Rise’, here on Monday. The UK-based innovative platform has already stepped into existence in various cities such as London, New York, Manchester, Tel Aviv, Cape Town, etc. The company’s first step to India started with a Mumbai-based start-up.
The services provided in other Countries are for free and thus keeping a foot forward in India will be quite beneficial. It mainly focuses on raising a physical co-working environment as per fintech platforms apart from event spaces and meeting rooms. In fact, Barclays have primarily focused towards financial technology when banks and other non-financial units withdraw themselves. Currently, India’s exponentially growing market will help similar fintech software to make enough space for confiscating the market.
According to Jaydeep Khanna, CEO & Country Head at Barclays India,The startup ecosystem is witnessing a steep increase in activity, and interest from investors, with even large corporates looking to invest in this space. Rise provides us with the opportunity to leverage client relationships and experience to play a relevant role in the growth of the fintech community.
Apart from Barclays, several other companies have tried hands on fintech software platform thus innovating in certain areas. HDFC Bank, ICICI Bank to name a few are in line to work with fintech start ups where as other tiny institutions a have showed interest in such investments or tie ups.
Mumbai-based startup Rising will be the first company to join hands with Barclays. Also, those who tend to join Rise Foundation, the respective British lenders won’t be entitled to work with them. In a similar case of the business plan, Barclays have decided to continue to invest in individual banks rather than looking at infusing more capital at the moment as they are presently adequately capitalised.
As of now, Barclays have ruled out conversion methods of Wholly Owned Subsidiary (WOS) as at this stage it does not make any pivotal requirement. Along with this, they have exited the cash equity processes so as to keep the keen focus on one particular business and not to communicate for any other business plans.
When queried on business expansion in the retail sector, Khanna opined as,“We continually think about it, but in the near term, there are no plans to subsidiaries. Currently, we don’t have any retail proposition in mind at this point and so the benefits of subsidising at this point of time are limited. It does not make sense with our size and business model.”