“Fintech Can Be A Threat Only If Google Or Whatsapp Enter The Space”

Even though the start-up space is considered as a risky sector, the Bank of India has recently launched several schemes to fund bright young minds with bright new ideas as Modi Government pushes for growth of start-up culture in India. Elaborating on this, G. Padmanabhan, Chairman of the Bank of India, spoke to Entrepreneur magazine about SMEs, start-up funding and fintech space at the L N Welingkar Institute of Management Development and Research’s convocation ceremony.

- Sunil Pol

For SME and startup financing, what initiatives have been taken by Bank of India?

SMEs have always been a priority sector which was defined long ago and the flow of finance to this sector was closely monitored by the government and the RBI. Hence, this sector was always nurtured and taken forward. I won’t be able to reveal the exact number but SME lending on YOY basis is moving upwards. However, the start-up culture is new to the banking scenario and it is so much into focus because the current government has given it a thrust.

What is you observation about fintech start-ups getting into banking space and vice-a-versa?