Jio Financial Services, an Indian conglomerate backed by Reliance Industries, has begun its loan and insurance businesses and expects to quickly grow its product offerings as Mukesh Ambani, a billionaire, spreads the ever-expanding tentacles of his oil-to-telecom empire.
For years, the market has been deeply monitoring Reliance’s plans to enter the financial services industry. But it wasn’t until last year that Ambani, the richest man in Asia, made public the company’s intentions to enter the market; even while it has multiplied over the past decade, it is still mostly untapped, servicing only tens of millions of people.
In its annual presentation, Jio Financial Services, which went public in August, announced that it has begun to provide personal loans to salaried and self-employed people through its MyJio app and 300 outlets across India. According to the company, its insurance division has also teamed up with 24 insurers to provide a broad range of coverage in the vehicle, health, and corporate categories.
Jio Financial Services has mostly avoided discussing the specifics of their intentions. The company, whose primary backer is still Reliance Industries, teamed up with American asset manager BlackRock earlier this year to deliver asset management services in the nation.
Ambani has recently entered the financial services industry after establishing himself in a number of industries, including telecom, during the past ten years. In addition, Reliance runs the biggest retail chain in the country, which has recently raised $100 billion from investors like KKR.
Jio Financial may present a competition to other industry participants, including Paytm and Policybazaar, as it grows its operations. For its financial services sector, Reliance claimed it will use AI and analytics and run at a “low cost of servicing.”
Jio Financial Services claimed that in order to save costs and enable individualized customer interactions, it is embracing a direct-to-consumer strategy with its offers. The company is creating a unified app for the “diverse financial needs of customers” and integrating “alternative data models for 360-degree customer view and tailored offerings.”
Jio Financial Services confirmed a TechCrunch claim from August in its annual report by stating that it is also testing a sound box, a quick, ubiquitous portable devices that notifies merchants when a transaction is complete. The business is, according to its statement, “creating a sizable data footprint, improving our customer engagement across digital channels, and ultimately enriching and facilitating other businesses.”
According to Jio Financial Services, it plans to provide loans to businesses and merchants as well as provide loans to help people buy homes and cars. Additionally, it plans to offer loans with shares as security. The company claimed to have “relaunched” bill-paying services and savings account services in addition to its ambitions to introduce debit cards.