JFS will streamline its payment infrastructure for both customers and businesses: Mukesh Ambani
JFS will streamline its payment infrastructure with a widely used service for both customers and businesses: Mukesh Ambani
Providing general insurance, health insurance, and life insurance products, JFS is also planning to enter the Indian insurance market.
According to Ambani, Reliance capitalized JFS with a net worth of INR 1.20 Cr, making it the highest capitalized financial services platform in the world at the time of its launch.
During the 46th annual general meeting (AGM) of the company on Monday (August 28), Reliance Chairman Mukesh Ambani announced that Jio Financial Services (JFS), the newest subsidiary of Reliance, will offer products in the payments and insurance sectors in India in addition to being in the asset management business.
“In payments, JFS will consolidate its payment infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital adoption,” said Ambani, adding that JFS products will not only compete with current industry benchmarks but also new-age features such as blockchain-based platforms and the central bank digital currency (CBDC).
As previously predicted, JFS is also planning to enter the Indian insurance market with a line of general insurance, health insurance, and life insurance products. To deliver insurance products digitally, JFS has partnered with major players worldwide.
The business intends to start providing complete insurance services in 2024, according to a recent report.
Ambani claimed today that the financial services industry requires a lot of capital and that Reliance has capitalized JFS with a net worth of INR 1.20 Cr. In fact, Ambani asserted that JFS was founded with the highest capitalization level of any financial services platform in the world, which also paved the way for the business to experience “tremendous” success.
“I have three reasons to be absolutely confident about JFS achieving tremendous success over the next few years. First, the digital-first architecture of JFS, will give it an unmatched head start to reach millions of Indians. Second, this is a highly capital-intensive business. Your company has provided JFS with a strong capital foundation to build a best-in-class trusted financial services enterprise and achieve rapid growth,” he said.
Ambani also said that the company’s strong board, which is led by KV Kamath, would aid in reaching new heights.
JFS was separated from RIL in July and listed earlier this month at a slight discount. The entry of the wealthy player into the insurance and payment markets will significantly increase competition for the new-generation Indian players, such as Zerodha, Groww, Paytm, PhonePe, and PB Fintech.
To make a wager on India’s $540 billion mutual fund market, which is dominated by companies like SBI, ICICI, and HDFC as well as startups like Zerodha and Groww, JFS has also partnered with the largest asset manager in the world, BlackRock.
Following the AGM announcements, JFS shares ended Monday’s trading session marginally lower at INR 211.65 on the BSE, while RIL shares ended the session 1.1% lower at 2442.55 on the exchange.
