Sumitomo Mitsui selects SBI to assist with its digital offerings

Monday 27 April 2020 12:21 CET | News

Japan-based Sumitomo Mitsui Financial Group (SMFG) has selected SBI, an online broker, to support the development of its financial technology strategy.

Through the deal, SMFG will acquire a stake in the mobile only brokerage unit of SBI. SMFG will also put money into a USD 930 million fund SBI will set up to invest in financial technology companies. According to Nikkei Asian Review, the partners are expected to sign the deal in the last week of April 2020. SMFG will acquire 20% of the shares of SBI Neo Mobile Securities  sometime in June 2020.

Through the deal, SMFG is trying to support its digital offerings, while SBI is seeking to add face-to-face consultations to its digital services. Neo Mobile offers an investment service that is popular among young people who have little investment experience. Customers can put the points they earn with their T-Point cards into their investments.

SMBC Nikko Securities, which is under SMFG, mainly targets elderly users and intends to expand its user base through the partnership.

The deal will also include the joint development of a support business for regional banks and other financial institutions.

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Keywords: Japan, SMFG, SBI, partnership, digital banking, financial technology, cards, bank
Categories: Banking & Fintech
Countries: Japan
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Banking & Fintech

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