Reliance's Jio Financial Services Embraces AI and Digital to Revolutionize Finance

31 Oct 2023 , 01:28 PM

Reliance Group-owned Jio Financial Services, led by KV Kamath, is devising a startup marketing strategy that leverages artificial intelligence (AI) and digital technology to effectively compete on pricing in the financial sector.

Jio aims to target middle-class and low middle-class consumers in both urban and rural markets, utilizing existing Reliance centers and Jio World Centers as contact points, employing technology and data for market penetration.

Kamath, drawing on his extensive experience from establishing ICICI, will formulate a strategy reminiscent of Jio’s telecom business, with a wealth of data and technology enabling informed decision-making.

Jio has already partnered with investment giant BlackRock to establish an asset management company, entering a domain where Bajaj is also a recent entrant.

Jio Financial Services will operate through separate business verticals, each led by a CEO. The use of AI to match investors with their risk profiles and recommend suitable investment products is under development.

Jio Financial Services anticipates significant growth fueled by increased consumption and digitalization, focusing on personal loans, consumer durable loans, business and merchant loans, auto loans, home loans, and loans against shares.

The company aims to harness the power of technology and data to disrupt and innovate the consumer finance sector, facilitated by the account aggregator and Aadhaar framework. Reliance opts for organic growth rather than expensive acquisitions.

This strategic approach aligns with the belief that technological advancements and data accessibility have transformed the consumer finance landscape, allowing for a more customer-centric approach.

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