Reliance Jio, the telecom company led by veteran businessman Mukesh Ambani, has initiated a pilot project for its Jio NBFC (Non-Banking Financial Company). According to The Hindi Economic Times report, Akash Ambani’s Jio Financial Services has commenced a consumer finance program as part of this pilot project. The program is currently being tested at various Reliance Digital outlets, where customers purchasing electronics or electricals are offered the option to repay their purchase amount through Equated Monthly Installments (EMI).
Read More: Tap Into The Green Opportunity With An Electric Vehicle Charging Station Of Your Own
The report added that the Reliance Jio’s NBFC program has been launched alongside existing EMI facilities provided by Reliance Digital Store, PR Bajaj Finserv, HDFC Bank, and others. By merging with these existing NBFC offers, Jio NBFC has initiated its operations.
Read More: HDFC-HDFC Bank Merger Effective From July 1; HDFC Stock Delisting From July 13
The initial reports suggested that Jio aims to attract customers by enhancing its financing offers. Reliance Digital is focusing on increasing margins in the business of Reliance Retail by providing improved financing options to customers purchasing home appliances.
Read More: IDFC First Bank raises ₹1,500 crore via tier-2 bonds in domestic market
While the scope for growth in the NBFC business may not be as substantial as in the telecom or FMCG sectors, Akash Ambani’s Jio NBFC has two crucial requirements for success: scale and brand value. Reliance Jio possesses a strong brand that can serve as its greatest asset. Additionally, with over 20,000 Reliance Digital outlets and various e-commerce platforms under its umbrella, Jio NBFC has significant potential to expand its financial products.
It will be interesting to observe how Akash Ambani’s Jio NBFC expands its operations and competes with rival companies in the coming years, considering its brand strength and wide retail presence.
