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    © All Rights Reserved
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    108 views20 pages

    Ken - JFS Leadership

    Uploaded by

    Rachna Ahuja
    Ken document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    08:38 39: EB AM 75% < @ Freshly minted Jio Fina... < the-ken.com Freshly minted Jio Financial is already the hottest new employer With an investment of over US$14 billion, the company is expected to replicate the disruption Reliance brought to the telecom industry. And it's putting together a crack team Gaurav Noronha, 27 Sep 2023 Despite being just two months old, Jio Financial Services is already the second-most valuable non- banking financial company in India While investors look forward to its product plans, fintech and financial services professionals are eager to work with the firm i W < i 08:38 BU EB AM 75% Hiring activity is in full force with some high-profile new-joiners across the lending and asset management verticals But the fresh faces at the newest entity to come out of the Jio stable will be tasked with delivering on all the hype Read a 200 word free summary. ‘SHOW SUMMARY It's common for corporates to shift their offices—usually for administrative purposes or better real estate deals. But a new workspace could also indicate the state of the company and the direction it is headed in. i A % 08:38 3 EB AM 75% Case in point: the $17.6 billion-worth Jio Financial Services Limited (JFSL), the newest business t out of oil-to- telecom conglome ance Industries (RIL)’s Jio stable. While its new office is just about 4 kilometres from the previous headquarters at Reliance Corporate Park, an employee said, the move was aimed at maintaining an arms-length distance from the parent RIL. The employees and others quoted in the story declined to be named as they did not want to be seen commenting on the companies. The 30-odd employees of JFSL and its various financial-services (finserv) arms and joint ventures (JVs) now work from Tower No, 25 at Dhirubhai Ambani Knowledge City in Navi Mumbai, Maharashtra, a western state in India. The holding company, JFSL, will house subsidiaries and JVs handling different verticals. The retail- and merchant- payment businesses will fall under Jio Payments Bank and Jio Payment Solutions i A < 08:39 3% EB MA74% Limited, earlier called Reliance Payment Solutions. The insurance business will come under Jio Insurance Broking Limited, formerly Reliance Retail Insurance Broking. The asset-management division will be housed within Jio Blackrock, But it is the firm’s foray into retail lending that has piqued the most interest. Prior to the JFSL demerger, Reliance the waters by offering equated monthly ” instalments for home-appliance purchases at select stores of the group’s consumer- electronics retailer, Reliance Digital. The lending business will fall under Jio Finance Limited (lending entity), a non- banking financial company (NBFC). Formerly known as Reliance Retail Finance, it was operational for 20 years and had Rs 3,680 crore ($442 million) assets as of March 2023. And a glimpse at the names who have been tapped for the C- suite roles will prove how crucial the lending vertical is. i W — 08:40 3% EB AM74% Neeraj Dhawan, former managing director (MD) and chief executive (CEO) of credit- reporting firm Experian India, will take the reins as the president and CEO of the lending entity. The Ken learnt that Ranjit Saha, a career banker and former head of tisk analytics and digital lending risk management at private lender ICICI Bank, has been appointed as chief risk officer (CRO). Garima Nahar, former chief compliance officer at distressed-assets investment firm Eight Capital, is the general counsel. “Reliance always wants to be the market leader in whichever space they enter. | have never been ina discussion where they said, ‘Let’s aim to be in the top 9 three. —A FORMER EXECUTIVE, JIOMONEY 08:40 3% EB AM74% The business, which is highly capitalised and part of the Jio brand, will be able to borrow money at cheap rates and pass on the benefits to customers, said an NBFG executive who wants to join the firm. “It will blow the competition out of the water.” For many, joining Jio Financial Services is about being in the right place at the right time and the opportunity to build an institution from scratch. Those who manage to get through will have to face the tall task of ensuring that the company lives up to the expectations. Unlock the power of Narrative Thinking Hands-on and customised, The Ken's Narrative Thinking Programme is for ambitious organisations who want to tell powerful stories 08:40 8% AM 74% It’s just the beginning The two-month-old company is currently at the drawing-board stage of operations. New employees have been trickling into the offices over the past few months after hiring rounds that were initiated between March and July, said a second employee. M-cap toppers JFSL, which had listed on the bourses in August, enjoys a market capitalisation of Rs 1.47 lakh crore (US$17.6 billion). For comparison, India’s top NBFC, Bajaj Finance, which had a loan book of Rs 2.47 lakh crore (US$29.6 billion) as of the year ended March 2023, is worth Rs 4.76 lakh crore (US$57 billion) I$\ININGNY JFSL, along with its arms and JVs, had 29 employees as of mid-August in functions such as data analytics, treasury management, product management, and i W — 08:41 3 oR AA 74% strategy. It is in n the process of setting up its information-technology infrastructure and digital-data warehousing. “As of now, there are no KPIs [key performance indicators] or targets in place. They are being worked on and should be deployed by November,” said the second employee. The company still has a lot of hiring to do, given that each subsidiary and JV would be running independently under their respective leadership. And with the hype surrounding the firm, despite the product lineup yet to be announced, finding people for various positions shouldn’t be hard for the recruiters. And for those looking to secure a leadership position with the company, there’s one factor that could mean a clear advantage. A stint with ICICI Bank. Dhawan, Saha, and Nahar of the lending arm have all had prior experience with India’s second-largest private lender. The moiority of the ton rina at INCT i W — 08:41 8% AM 74% The majority of the top rung at JFSL, including president and CEO Hitesh Sethia, group chief operating officer Charanjit Attra, group chief human resources officer Manish Singh and group chief financial officer Abhishek Pathak, have also worked with ICICI Bank in the past. The Ken has learnt that Sanjay Chougule, the former group chief internal auditor at ICICI Bank, is now working with JFSL in a compliance role. Ranganath Athreya, former corporate social responsibility and governance advisor to the private lender, has joined JFSL as a senior advisor. Both of them have over 20 years of experience with the ICICI Group. There’s also a strong pull factor for senior ICICI Bank talent—the chance to work again with banking veteran KV Kamath, the former ICICI MD and CEO who was independent director and non- chairman of JFSL. “They are trying to create ICICI th N S a 08:41 3% AM 74% “They are trying to create ICICI number two. They are picking out the best of the ICICI lot from wherever they are and bringing them to Jio [Financial Services]” —A FINANCIAL SERVICES INDUSTRY EXECUTIVE Besides, the company didn’t even need to look far to find another eligible talent pool. “When the lending arm was just getting formed, a few people from within the [RIL] group companies were recruited to join immediately,” said the first employee. Gayathri Karthik, former product in charge of current accounts and savings accounts at Jio Payments Bank, joined the lending arm to take charge of the consumer loans product. Vivek Kumar, former fintech product head at Reliance Retail, is the group product manager for merchant- finance solutions. JESL has inherited fully functional payment i W — 08:41 v. 4M 73% and insurance broking businesses from RIL’s prior attempts at financial services, albeit on a relatively small scale. While Jio used to sell insurance to its merchant partners, J Jio Payments Bank had 12,774 | UPI | QR codes as of July compared to rival Paytm’ 's 32 million. But it’s the fresh recruits for the lending and asset-management businesses who have been tasked with building the companies from the ground up. Recruitment mode on The company has also roped in recruitment firms Native and EMA Partners. For roles beyond leadership, it has conducted a campus recruitment drive at Jio Institute in Navi Mumbai, and onboarded freshers and mid-management personnel across verticals. However, it has not yet posted any vacancies on its career portal 08:42 ol 4M 73% Top hires The lending entity’s initial venture into consumer-durables financing is reminiscent of the path the late Nanoo Pamnani, former chairman of Bajaj Finserv and Rajeev Jain, managing director of Bajaj Finance, took 15 years ago to build the financial institution into what it is today. The core team at JFSL’s lending arm similarly stands at the threshold that can make or break its future. The appointment of 53-year-old Dhawan as CEO of the lending entity signals a focus on this vertical. “He has dabbled in all parts of the retail lending business—from collections to credit policy to loan-book management,” said a former colleague of Dhawan’s. The ex-MD of Experian India has over 27 years of banking experience across institutions. Apart from working with ABN AMRO Bank and CSB Bank, Dhawan headed retail collections at HDFC Bank before taking charge of credit, policy, and debt-service management at ICICI Bank and Jeter landing a Coote nacitinn ac Vac @=——) A

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