Jio Financial Services (JFS), the newly formed subsidiary of Reliance Industries, will soon foray into the insurance segment, Mukesh Ambani informed shareholders at the company's 46th annual general meeting.
"JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way," he adds.
The development comes a month after the demerger of Reliance Strategic Investments, to form an individual entity Jio Financial Services Limited beginning July 25. The newly formed subsidiary was formly listed in the bourses on August 21.
"Every shareholder of Reliance Industries has received shares in JFS on a 1:1 basis, following the recent demerger of the financial services business. This is equivalent to the ‘mini bonus’ for our long-term investors. JFS has been conceptualised to fill a critical gap in the financial services need in the large section of the Indian economy, mainly in the informal and underreserved sectors," says Ambani.
According to the chairman of Reliance Industries, Jio Financial Services plans to consolidate the payment infrastructure by driving digital payment adoptions in India.
"JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC. They will adhere to the highest standards of security, and regulatory norms and ensure protection of customer transaction data at all times," says Ambani.
"JFS is born to accelerate the replication of India’s dazzling growth story in BHARAT. JFS will massively increase the financial services penetration by transforming and modernizing them through a digital-first approach that simplifies financial products, reduces cost of services and expands reach to every citizen through the easily accessible digital channel," he adds.
According to Ambani, JFS plans to consolidate the payments infrastructure to further drive digital payments adoption in India. “JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC. They will adhere to the highest standards of security, and regulatory norms and ensure protection of customer transaction data at all times,” says Ambani.
The company has recently entered into a joint partnership with US-based asset management company BlackRock to form an asset management company in India. BlackRock, which is touted to be the world’s largest asset management company, manages assets worth $11 trillion. According to Ambani, the joint venture will synergise the respective strengths of Jio Financial Services and BlackRock, to deliver tech-enabled, affordable and innovative investment solutions.
"Our companies have a shared vision to create better financial futures, and Jio BlackRock will deliver our combined expertise and scale to unlock the power of investing for millions of people in India. BlackRock is already one of the largest non-Indian investors in India today, and India lies at the heart of our global platform," says Larry Fink, chairman and CEO, BlackRock.
"Jio Financial Services brings digital infrastructure capabilities and local market knowledge, and BlackRock brings global investment and risk management expertise. Together, we will aim to transform India’s asset management industry through a digital-first offering and democratise access to affordable, innovative investment solutions for millions of investors in India. India represents a tremendous opportunity, and Jio BlackRock demonstrates our commitment to India’s continued growth and promise," he adds.
