International banks including Barclays, HSBC, Bank of America and JP Morgan will assist in finding the next generation of start-up technologies to help banks become more secure and agile.
The FinTech Innovation Lab, which ran for the first time last year, will see developers competing for six spaces in its London-based startup incubator. In order to be considered, applicants must have a working beta of their technology available, and must also prove to senior executives at banks and financial firms that their product will have a meaningful impact on business.
If successful, the participants will start a 12-week programme in which they will be partnered up with executives and other tech entrepreneurs to ramp up development. The scheme then culminates with a presentation day attended by venture capitalists and other finance industry leaders in March 2014.
Last year's entry list included Digital Shadows, a cyber-security firm that keeps track of companies' digital footprints, and the Open Bank Project, which was recently accepted into Sir Tim Berners-Lee's Open Data Institute startup programme.
Barclays chief technology officer Shaygan Kheradpir said: "The increasing role of technology in financial services is accelerating the pace and breadth of innovation and driving the kind of cutting-edge services which our customers and clients demand.
"The entrepreneurial approach that the FinTech Innovation Lab London delivers is exactly the kind of capability that this industry needs and we are delighted to be supporting it."
Kit Malthouse, deputy mayor of London for business and enterprise added: "London is now the leading digital city in Europe, home to a dynamic community of tech giants, entrepreneurs and new startups.
"The mayor and I are committed to creating the right conditions for this sector to flourish further still. The FinTech Innovation Lab marries finance and technological innovation and we are delighted to see it entering its second year."
Last week Barclays losts one of its chief technology innovators to a start-up as the London demand for up-and-coming financial tools continues to grow.
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