Life Insurance Corporation of India (LIC) on Thursday announced that it has signed an MoU with GE Money India, Corporation Bank and LIC Housing Finance Ltd. for setting up a joint venture to launch credit card  by the end of next month.

The proposed venture would leverage LIC and Corporation Bank’s brand and branch, ATM, and sales distribution network, and GE Money’s global and local expertise in credit cards, business management processes, and technology-driven platforms.

The JV seeks to become a major player in India’s credit card industry. “We are excited to be taking our company to the next phase of growth with this new strategic JV. 

This partnership brings excellent management skills, credit card experience, and unparalleled distribution networks under one roof and we look forward to working with one another,” Vishal Pandit, CEO of GE Money’s India operations said.

Mr Pandit added, “We look forward to leveraging our expertise in consumer financial services to help this partnership become a strong cards player.”

Joint management
The new company will have its headquarters in the National Capital Region. LIC has appointed Hemant Bhargava as CEO for the new venture. A joint team is being put in place, with members from LIC and GE Money to take forward the new initiative.

Through this JV, LIC aims to offer premium-payment facility to policyholders with their own credit card. Not only will this provide added convenience and service to LIC customers, it will bring down transaction costs for LIC.