Disruption is in the air and again billionaire Mukesh Ambani is at the forefront, promising ‘simple, affordable,” solutions in the financial services sector using his massive digital networks and platforms for it.
Last fiscal year Reliance Industries created a separate subsidiary for its financial services business, Jio Financial services, which will be listed later this year. A special price discovery trading session last month showed that Jio Financial is likely to list at ₹261.80, valuing it at around $20 billion.
In the FY23 annual report, chairman and managing director Ambani said that Jio Financial “Along with its subsidiaries will leverage the technological capabilities of Reliance and digitally deliver financial services, democratising access to financial services offerings for Indian citizens. Jio Financial Services aims to provide simple, affordable and innovative digital first solutions.”
The conglomerate has the reputation of disrupting sectors where it makes an entry and pricing has been one of its prime strategies aided by acquisitions. In the telecom sector, it wrested the leadership position from Bharti Airtel through aggressively priced talk-time and data packs. In the more difficult fast-moving consumer goods sector it is establishing its presence through acquisitions.
Financial services is one of the most strictly regulated sectors in the country and industry observers are keenly watching to see how Ambani will be able to establish dominance here. It has already started off the blocks by forming a joint venture with US-based BlackRock to offer asset management services. It will also be banking heavily on its digital capabilities for offering its services.
“As various financial services are governed by different regulatory frameworks, we believe, an independent financial services entity will allow us to access the opportunities available in the Indian market,” Ambani said in the annual report.
RIL’s annual general meeting is set to be held on August 28.