The foundation stone for Chennai’s new FinTech City was laid recently, marking a major milestone in the State’s efforts to position itself as a global leader in the financial technology sector. The city has a long history of financial innovation, dating back to the establishment of the Madras Bank in 1682.
In recent years, Chennai has emerged as a major hub for the Indian IT and auto sector and the FinTech City is expected to further accelerate the city’s growth.
The 56-acre FinTech City will be located in Nandambakkam, Chennai. This project will be developed in two phases, with the first phase expected to be completed by 2025. The first phase will include a financial technology tower, a research park, and a business incubator. The second phase will include additional office space, residential units, and a retail area.
GIFT City vs Chennai FinTech City
Chennai’s FinTech City and Gujarat International Finance Tec-City (GIFT City) are both ambitious projects but there are some key differences between the two cities. GIFT City is focused on attracting international financial institutions as it has a special economic zone (SEZ) status, which offers a number of tax and regulatory benefits to businesses.
GIFT City is also home to the International Financial Services Centre (IFSC), which is a dedicated financial market. Chennai’s FinTech City, on the other hand, is focused on attracting both domestic and international financial institutions, as well as technology companies and start-ups.
Though Chennai’s FinTech City does not have an SEZ status, it does offer a number of other incentives to businesses, such as a waiver of stamp duty, registration fees, etc. Chennai’s FinTech City is also located in a major IT hub, which gives it access to a large pool of skilled workers.
Moreover, Chennai’s FinTech City also has a number of other potential benefits such as the city is located in a time zone that is convenient for businesses in both the Americas and Europe. This means that businesses in Chennai can be more easily connected to global markets.
Additionally, Chennai has a strong culture of innovation, which could help to attract businesses that are looking to develop new financial technologies.
Adding value to TN
The FinTech City is expected to have a significant economic impact on Tamil Nadu. It is expected to create jobs, attract investment, and boost the State’s exports. The FinTech City is also expected to help to improve the financial literacy of the people of Tamil Nadu.
It would also have a number of educational and training programs to create awareness about financial products and services. This in turn help to reduce financial exclusion and make it easier for people to access financial services.
Chennai’s FinTech City is a major development that has the potential to transform the financial landscape of Tamil Nadu. It is well-positioned to succeed owing to strong IT infrastructure, skilled workforce, and supportive government.
Overall, Chennai’s FinTech City is a unique and ambitious project that has the potential to make Chennai a global leader in the financial technology sector. The Chennai’s FinTech City has a number of advantages over GIFT City, and it is well-positioned to succeed.
Saravanan is a Professor of Finance and Accounting at IIM Tiruchirappalli; and Williams is a project manager-ESG at Good Vision Seva Trust
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