Jio Financial plans to roll out suite of loan products

Jio Financial Services (JFS) is set to introduce a comprehensive range of loan products, including auto and home loans, as part of its strategy to establish itself as a full-fledged financial services company in the rapidly expanding market. 

Despite significant economic growth, the adoption of financial investment products remains relatively low in the country. Mukesh Ambani aims to tap into this market opportunity by diversifying JFS's offerings.

JFS has already introduced personal loans for both salaried and self-employed individuals in Mumbai, along with consumer durable loans available across 300 retail outlets throughout India. The company now plans to extend its services to include business and merchant loans for self-employed individuals.

Furthermore, JFS's insurance broking division has entered into partnerships with 24 insurance companies. Its payments bank division, which recently reintroduced savings accounts and bill payment services, intends to launch debit cards.

Emphasising technology and artificial intelligence as key drivers of growth, JFS is also developing an app to facilitate access to its financial products.

JFS recently reported strong second-quarter earnings after being spun off from parent company Reliance Industries and listed on the stock exchanges. Although its stock initially experienced a sharp discount at listing, it has rebounded, with shares rising by up to 3.7 per cent in early trading.

Jio Financial has also collaborated with US asset manager BlackRock to introduce asset management services in the country. Despite the initial market reaction, analysts from Jefferies anticipate a balanced approach to growth by JFS, and they see limited risk for competitors like Bajaj Finance and other prominent retail banks.

(With Reuters Inputs)