According to the latest reports coming from the financial services sector, Indian multinational conglomerate Reliance Industries has decided to enter into the financial services business with an entity named Jio Financial Services. Jio Financial Services which is currently part of Reliance industries would be demerged from the major entity.
Jio Financial Services would conduct finance businesses which would be beneficial for both consumers and merchants alike. With the setup of Jio Financial Services, Reliance Industries is planning to create a Fintech entity that would be accessible to all Indians.
Reliance Industries said in a statement that Jio Financial Services would be conducting the acquisition, and incubation of various businesses. The JFS entity would also be signing joint venture partnerships with related businesses.
The new partnerships and acquisitions are expected to help Jio Financial Services is expanding its financial services to insurance, payments, digital broking, and asset management.
Reliance Industries owned by Indian billionaire Mukesh Ambani is one of the largest companies in the country with huge investments in energy, oil, retail, and various other sectors. In the annual general meeting of the company which concluded a few weeks ago, Mukesh Ambani made some significant announcements regarding the succession plans of the billion-dollar business empire.
Reliance Industries already conduct some financial businesses with merchants and consumers of a retail chain in the form of credit purchase etc. With Jio Financial Services, the multinational conglomerate will be able to take its financial services to another level which would revolutionize Financial service sector in India.
Through Jio Financial Services, Reliance Industries is planning to offer lending based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting.
The company said in a statement that the newly formed entity would be a transformational, customer-centric, and digital-first financial services enterprise offering simple, affordable, innovative, and intuitive financial services products to all Indians.
Reliance Industries also has the option to make use of a wide range of retail chains owned by the conglomerate to spread the message of Jio Financial Services and hence earn businesses through the consumers of other business arms. The company can also utilize the infrastructure and consumer base of other consumer businesses of Reliance Industries which are spread all over the country.
Apart from oil, energy, and retail business, Reliance Industries has a telecom business in name of Jio and continues to be one of the largest telecom service providers in the country. The financial service entity of Reliance can also make use of the telecom infrastructure to generate consumers and earn revenue.
There are also reports that the multinational conglomerate company would be listing the financial services company as soon as possible. There is still no clarity regarding when the entity would be listed on the Indian stock exchanges.