January 31, 2024
As the global shift towards Open Banking accelerates, financial institutions seek more assistance from BankTechs to create a superior customer experience. Additionally, internal improvements focus on operational efficiency at scale and a better understanding of customer requirements. The maturing Indian technology ecosystem, with numerous quality entrepreneurs crafting global products, adds to the attractiveness of investing.
Subit Saurav, Associate Partner at Cedar-IBSi Capital (SEBI AIF), said: “As the world embraces Open Banking, financial institutions require support from technology companies to enhance legacy systems for improved external access, user experience, personalized services, and internal operational efficiency. In the maturing Indian tech ecosystem, quality entrepreneurs are crafting global products. With Cedar and IBSi’s 60 years of BankTech expertise, we are confident of adding value to BankTech startups/ founders beyond capital, creating significantly large-scale new-age BankTech companies in the long run.”
The ability to recognize industry winners is not solely based on historical insights but is a dynamic process that involves continuous adaptation and foresight. It is an understanding honed through years of witnessing banking systems’ evolution, innovative technologies’ integration, and the ever-changing demands of a dynamic market.
Funding BankTech Development
The funding environment significantly influences the development and sustainability of BankTech solutions. Successful BankTechs have resilience in their DNA, which is required for longer sales cycles. They are adapting to the current funding landscape, focusing on achieving Product-Market Fit (PMF) and avoiding operational inefficiencies. Consequently, funding must be directed towards strengthening the team (sales, implementation, development) and adding new use cases to deepen your client relationship.
Funding for Relevance and Innovation
BankTech must remain up to date with emerging technologies to stay relevant in the ever-evolving financial landscape. Institutional funding provides a leg up to BankTech startups to invest in future growth early on. Early-stage promoters leverage funding to build for medium and long-term goals, which is crucial for sustained relevance in this dynamic space. Investment areas include training and upskilling employees, ongoing research and development (R&D) and building new use cases.
About Cedar-IBSi Capital
Cedar-IBSi Capital (SEBI AIF – Independent VC fund) will leverage the platform of Cedar Consulting, a global management consulting firm, and IBS Intelligence, a global FinTech market intelligence firm. As a BankTech/B2B FinTech-focused Venture Capital entity, Cedar-IBSi Capital draws on the collective expertise of two +30-year-old financial services/FinTech research and consulting firms. Positioned uniquely with a deep understanding of the FinTech landscape, Cedar-IBSi Capital supports founders, and FinTechs poised to drive disruption in the decades to come. The firm is committed to assisting emerging BankTechs in navigating the evolving financial technology landscape
Leveraging Cedar and IBSi’s +60 years of experience in the BankTech domain, confidence in identifying industry winners is rooted in a deep understanding of the sector’s evolution. This extensive experience allows Cedar-IBSi Capital to discern not only the current pulse of the industry but also anticipate and navigate the shifts and trends shaping its future.
