In order to establish itself as a full-service financial services firm in a rapidly growing market, India’s Jio Financial Services JFS plans to launch auto, home loans and other products in the country.
Jio Plans To Launch Suit Of Financial Products
It seems that the penetration of financial investment products in India is low relative to the size of the economy, despite the strong growth.
The billionaire Mukesh Ambani-backed company is looking to tap into this market after similar disruptive forays into the telecom and retail sectors.
Besides this, JFS has already launched personal loans for salaried and self-employed individuals in the financial capital of Mumbai and consumer durable loans across 300 stores in India, the company showcased in a presentation to analysts late on Monday, offering a first glimpse into operational details that had largely been vague at the time of its listing in August.
Business, Merchant Loans and Many More
Now the firm will also launch business and merchant loans for self-employed individuals, it said.
Meanwhile, its insurance broking arm has also partnered with 24 insurance companies.
In the similar fashion, its payments bank division, which relaunched savings account and bill payment services, plans to launch debit cards.
The company is also working on an app to carry its products while betting on technology and artificial intelligence to be its “growth differentiator”.
After being carved out of parent Reliance Industries, JFS’ first earnings report and listed on the stock exchanges showed second-quarter profit doubled from the previous three months.
Considering the same, the shares of the company rose as much as 3.7% in early trading, before paring some of the gains to trade 2% higher.
Notably, Jio Financial, which has earlier tied up with U.S. asset manager BlackRock to launch asset management services in India, listed at a sharp discount.
On Monday, the stock was down about 14%, at the time of market closing.
According to Jefferies analysts, JFS is likely to take a “balanced approach to growth,” as they see limited risk for rival Bajaj Finance and other leading retail banks.
