IIM Ahmedabad’s Centre for Innovation, Incubation and Entrepreneurship (CIIE) and JP Morgan has announced their collaboration to set up a Financial Inclusion Lab. The US$9.5 million initiative is aimed at identifying and bringing to scale early-stage fintech start-ups that are focused on helping people in India within the lower and middle income (LMI) segment who earn US$2-US$10 a day. The start-ups will enable access and usage of appropriate financial products and services such as savings, credit and insurance for LMI households.
The Lab is part of IIMA-CIIE’s Bharat Inclusion Initiative (BII), a program launched in May that aims to incubate and support start-ups that are focused on developing technologies that can be used for the benefit of underserved communities in the areas of livelihoods, financial inclusion, health and education. J.P. Morgan will provide up to US$7 million over the next four years towards this initiative. This would be the largest philanthropic commitment made by J.P. Morgan outside of the U.S. Michael & Susan Dell Foundation and Bill & Melinda Gates Foundation are also supporting the Lab as part of their overall commitment to Bharat Inclusion Initiative.
“The Financial Inclusion Lab is a critical component of the Bharat Inclusion Initiative continuum and will build upon CIIE’s decade-long experience of running incubators, accelerators and impact funds to provide inclusion focused tech entrepreneurs the comprehensive support required to turbocharge their journeys. We are excited to partner with J.P. Morgan to create access and opportunity for more people to join the financial mainstream by unlocking entrepreneurial energy,” said Priyanka Chopra, COO, CIIE.
Over 80 per cent of the addressable LMI market, or 470 million people, are not integrated into the economic mainstream. Early stage fintechs, when provided with the right mentoring, insights and capital support, can have a huge and positive impact on the lives of many people. The Lab will host a series of accelerator programs to identify solutions for specific financial challenges, and leading ideas will be supported with start-up capital, market access, technical assistance, mentoring and sector expertise.
Source – Press Release.