New Delhi, September 23 – UK-based lender NatWest Group has announced plans to step up investments in Indian startups and expand its technology workforce in the country, underlining the growing role of India in the bank’s global digital strategy.
The group will invest between \$250,000 and \$2 million per deal in early-stage startups, with a focus on payment solutions, agentic artificial intelligence (AI that can operate autonomously), and governance frameworks. The investments will largely target companies at the Series A and Series B stages, with occasional participation in earlier rounds, through small equity stakes.
Alongside startup investments, NatWest will expand its in-house technology capacity. It currently runs three global capability centres in Bengaluru, Gurugram and Chennai, employing around 17,000 people. Another 3,000 engineers will be hired, taking the India headcount to nearly 20,000. More than half of NatWest’s engineering workforce is already based in India, making it the bank’s largest technology hub outside the UK.
NatWest Group, formerly known as Royal Bank of Scotland (RBS), is among the UK’s largest banking and financial services institutions. It serves nearly 20 million customers across retail and commercial banking, wealth management, and financial markets. With over 80% of its customers interacting online, the bank is accelerating investments in AI-driven services, digital payments, and risk management systems.
India has become central to these ambitions, offering both a deep talent pool and a thriving fintech ecosystem. The country hosts more than 1,700 global capability centres (GCCs) that generate revenues exceeding \$60 billion annually. Banking and financial services GCCs are among the fastest-growing, reflecting the sector’s increasing reliance on Indian operations for technology and digital transformation.
NatWest’s investments are expected to benefit startups in fintech, artificial intelligence, and regulatory technology that are developing solutions around payments, fraud detection, compliance automation, and AI-driven decision-making. Apart from capital, the bank’s entry into the ecosystem is expected to provide startups with access to international banking expertise, regulatory knowledge, and opportunities to test and scale their products within a global financial framework.
Industry observers note that early-stage founders, particularly in payments and AI, stand to gain from the credibility associated with investment from a global financial institution. This model of small equity stakes combined with technical collaboration allows startups to gain validation with customers, regulators, and potential investors.
On the workforce side, NatWest is offering 15–30% higher pay packages to attract engineers in areas such as AI, data analytics, and software development. The expansion adds to the already competitive demand for skilled talent in India, where global banks, fintech firms, and technology companies are competing for similar expertise.
For India’s startup ecosystem, NatWest’s entry adds depth to the funding landscape at a time when early-stage investment has been uneven. For NatWest, India provides both cost-efficient engineering capacity and a source of new ideas. The strategy of combining startup investments with an expanded in-house workforce positions the country as a core pillar of the bank’s digital transformation.
As banks worldwide respond to rapid shifts in payments, AI adoption, and compliance requirements, India’s role as both a technology talent hub and a partner for innovation is set to expand further.
