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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.