RIL AGM: Mukesh Ambani Says Jio BlackRock To Transform India's AUM Industry; 3 Reasons Why?

At the 46th annual general meeting, RIL's chief Mukesh Ambani shed light on the newest company of the group, Jio Financial Services. Ambani said that JFS has been conceptualised to fill a critical gap in the financial services needs of a large section of the Indian economy. He also believes that JFS is born to accelerate the replication of India's dazzling growth story in Bharat. Ambani explains three reasons why JFS will prove to be an invaluable addition to the Reliance ecosystem of customer-facing businesses.

He said, " I have three reasons to be absolutely confident about JFS achieving tremendous success over the next few years." These are:

1. The digital-first architecture of JFS will give it an unmatched head start to reach millions of Indians.

2. This is a highly capital-intensive business. Your Company has provided JFS with a strong capital foundation to build a best-in-class, trusted financial services enterprise and achieve rapid growth. Reliance has capitalised JFS with a net worth of Rs 1,20,000 crore to create one of the world's highest capitalised financial service platforms at inception.

3. JFS is blessed with a very strong board, led by K.V. Kamath, a veteran and most respected banker. A highly motivated leadership team is being built with a combination of financial industry experts and young leaders who are eager to take on big challenges.

Ambani confirmed that every shareholder of RIL has received shares in JFS on a 1:1 basis following the recent demerger of the financial services business. He said, "This is equivalent to a mini bonus for our long-term investors."

Explaining the basic mission of JFS, Ambani said, "JFS has been conceptualised to fill a critical gap in the financial services needs of a large section of the Indian economy, mainly in the informal and underserved sectors in rural, semi-urban and urban areas. This will give a big boost to inclusive and accelerated growth of the economy."

In other words, he added, "JFS is born to accelerate the replication of India's dazzling growth story in Bharat."

According to Ambani, JFS will massively increase financial services penetration by transforming and modernising them with a digital-first approach that simplifies financial products, reduces cost of service, and expands reach to every citizen through easily accessible digital channels.

"For tens of thousands of SMEs, merchants, and self-employed entrepreneurs, ease of doing business must mean ease in borrowing, investments, and payment solutions. JFS plans to democratise financial services for 1.42 billion Indians, giving them access to simple, affordable, innovative, and intuitive products and services," he added.

Talkung about the JV with BlackRock to set up an asset management business, Ambani said it will provide simple and trustworthy investment solutions in the country.

BlackRock is the world's largest asset management company, managing assets worth over $11 trillion with a stellar reputation and track record, Ambani added, The JV will synergise the respective strengths of JFS and BlackRock to deliver tech-enabled, affordable and innovative investment solutions.

Also, in the AGM, Larry Fink, Chairman & CEO of BlackRock shared his vision on the partnership. He said, Jio Financial Services brings digital infrastructure capabilities and local market knowledge, and BlackRock brings global investment and risk management expertise. Together, we will aim to transform India's asset management industry through a digital-first offering and democratize access to affordable, innovative investment solutions for millions of investors in India."

"India represents a tremendous opportunity, and Jio BlackRock demonstrates our commitment to India's continued growth and promise," Fink added.

In his concluding remark, Fink expressed his excitement about the new partnership and wish all the best to the entire Reliance Industries team for another great year ahead.

Further, in payments, Ambani said, JFS will consolidate its payments infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital payment adoption for India. JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC. They will adhere to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times.

JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way.

On BSE, currently, JFS share price traded at Rs 208.60 apiece down by 1.72%.