Synopsis: Jio Financial Services (JFS), a subsidiary of Reliance Industries, has achieved significant milestones since its inception as a listed company. It has focused on establishing robust governance, implementing advanced technology solutions, and expanding its financial products through innovative digital platforms like the Jio Finance App.
Over the past three quarters as a listed company, Jio Financial Services (JFS) has been active on multiple fronts, establishing a strong governance and policy framework and implementing a modern, cost-effective technology and data architecture.
Reliance Industries made headlines when it carved out Jio Financial Services (JFS).
The non-banking financial company (NBFC) is now focusing on its first major milestone: the launch of the Jio Finance App in a beta version on iOS and Play Store.
This app consolidates the offerings of the JFS group, providing a digital, simple, and unified platform to distribute financial products to consumers.
This complements the merchant app launched six months ago.
“With both these apps in place, we believe we have now created a vital digital channel to reach our target customers,” Hitesh Sethia, Managing Director and Chief Executive Officer of JFS, told investors.
The app already has half a million downloads, he added.
JFS, dubbed the ‘fourth engine’ after oil, telecom, and retail, aims to leverage its established consumer-facing retail and telecom operations to build a financial services supermarket.
Formerly known as Reliance Strategic Investments, JFS is positioned as a large NBFC.
It operates as a holding company with a network of consumer-centric subsidiaries and associate firms in areas like lending, payment processing, insurance broking, and asset management.
Recently, it received final approval from the Reserve Bank of India to convert Jio Financial Services from an NBFC to a Core Investment Company.
The company is also accelerating its secured lending proposition.
It has launched loans against mutual funds for its customers.
“We are progressing with home loans, which are currently in a sandbox, and slated for consumer launch post our beta phase,” Sethia revealed.
It has also started its operating lease business with AirFiber devices.
The company’s DaaS (device as a service) model for consumer devices (AirFiber, phone, laptop) is expected to create a new market as it is not something large NBFCs or banks have done before.
Jio Payments Bank, after a digital revamp, has added over a million current and savings accounts (CASA).
“With the revamped tech stack, the Jio Payments Bank can now open a digital savings account for its customers online in only a few minutes,” said Sethia.
The bank also offers a virtual Rupay platinum debit card.
Though still in its nascent phase, the digital savings account has garnered over a million active customers to date.
Last year, JFS sealed a deal with the world’s largest asset management company, BlackRock, for a 50:50 joint venture in the asset management space.
BlackRock, a dominant player in passive investment, has popular exchange-traded funds (ETFs) globally.
“We have identified top talent and are focused on integrating advanced technology platform solutions to deliver superior asset management services. Our process with the regulator for the necessary approvals is well underway,” said Sethia.
Over the past three quarters as a listed company, JFS has been working on multiple fronts.
The key pillars include establishing a robust governance and policy framework, hiring and integrating top talent across all operational levels, and implementing a modern, cost-effective technology and data architecture.
These initiatives are designed to enable rapid product launches and scalable distribution.
With over two decades of experience, Sethia played a key role in expanding ICICI Bank’s presence globally, being a founding member of the bank's Canadian and German operations.
He was also assigned senior roles in the UK and Hong Kong branches of the private bank.
In his last role with the Mumbai-headquartered bank, Sethia led the transaction banking division.
In conclusion, Jio Financial Services (JFS) has made significant strides over the past three quarters as a listed company, focusing on establishing a strong governance framework and modernizing its technology and data architecture.
The launch of the Jio Finance App marks a critical milestone, enhancing the company's ability to offer a unified platform for financial products.
With a solid foundation in place and strategic initiatives underway, JFS is well-positioned to leverage its retail and telecom operations to build a comprehensive financial services ecosystem.
The company's innovative approach, combined with its partnerships and regulatory approvals, sets the stage for continued growth and expansion in the financial sector.
Under the leadership of Hitesh Sethia, JFS is poised to create a significant impact, transforming the landscape of non-banking financial services in India.
