After the asset management business, Jio Financial Services (JFS), the new company of Mukesh Ambani-led Reliance Industries Ltd (RIL) group, is set to enter the insurance sector and will offer life, general and health insurance products.
Speaking at RIL's annual general meeting, Mr Ambani, the group chairman, says, "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."
In payments, the RIL chief says, "JFS will consolidate its payments infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital payment adoption for India. JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and the central bank digital currency (CBDC). They will adhere to the highest standards of security and regulatory norms and ensure the protection of customer transaction data at all times."
According to Mr Ambani, JFS will massively increase financial services penetration by transforming and modernising them with a digital-first approach that simplifies financial products, reduces the cost of service, and expands reach to every citizen through easily accessible digital channels.
"For tens of thousands of small and medium enterprises (SMEs), merchants, and self-employed entrepreneurs, ease of doing business must mean ease in borrowing, investments, and payment solutions. JFS plans to democratise financial services for 1.42bn (billion) Indians, giving them access to simple, affordable, innovative, and intuitive products and services," he says.
Last month, JFS and BlackRock announced to set up an asset management business to provide simple and trustworthy investment solutions in India. The 50:50 joint venture (JV) combines the respective strengths and trusted brands of BlackRock and JFS to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India. JFS and BlackRock target an initial investment of US$150mn (million) each in the JV.
Speaking during the RIL AGM, Larry Fink, chairman and chief executive officer (CEO) of BlackRock, says there is an unprecedented opportunity to transform the asset management industry by introducing a full-service tech-enabled asset manager with affordable and transparent investment products to meet the needs of every segment of the society.
"JFS 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," he added.