Life Insurance Corporation(LIC) has signed an Memorandum of Understanding with GE Money India, Corporation Bank, LIC Housing Finance Ltd and LIC Mutual Fund AMC to create a new credit card company that would leverage the strengths of each company. Speaking to FE TS Vijayan chairman, LIC said that the share holding pattern of the partners is yet to be decided and the JV will have more partners.
The five partners aim to finalise definitive agreements by the end of October. With 20 crore policy holders of Life Insurance Corporation, the JV aims to become a major player in India’s fast-growing credit card industry. A joint team is being put in place, with members from LIC and GE Money to take forward the new initiative.
GE Money is already a part of a strategic joint venture in SBI Cards.
The proposed venture would leverage LIC and Corporation Bank’s strong brand and extensive branch, ATM, and sales distribution network, and GE Money’s global and local expertise in credit cards, business management processes, and technology-driven platforms. Vijayan, said ?This partnership brings excellent management skills, credit card experience, and wide distribution networks under one roof and we look forward to working with one another.?
LIC aims to provide various value-added services such as credit cards.
The policy holders of LIC would be able pay their premiums through the proposed credit card which enable a fall of service charges for LIC. LIC has appointed Hemant Bhargava as chief executive officer for the new venture. The company will have its headquarters in the NCR.