Sumitomo Mitsui Financial Group (SMFG), a bank holding company in Japan, has decided to partner with SBI Holdings to offer digital banking services on smartphones, Nikkei newspaper reported.
The companies are expected to ink the partnership deal this week. The deal is expected to help the partners create products and services that will better cater to the millennials.
They are mulling mutual capital ownership to deepen their ties in digital banking and also provide products like insurance and mutual funds.
Under the deal terms, SMFG will acquire a stake in the mobile-only brokerage unit of SBI, the report added.
In June 2020, SMFG will acquire a 20% stake in SBI Neo Mobile Securities, which allows users to invest as low as a few hundred yen.
Users can also invest using the points they earn with their T-Point cards.
Customers can earn one point or yen for every JPY100-200 spent using their prepaid electronic money cards. They can also spend the points at participating retailers.
Additionally, SMFG will contribute JPY100bn ($930 million) into a fund created by SBI to invest in financial technology companies.
The partnership will not only allow SMFG to beef up its digital offerings but also enable SBI to add face-to-face consultations to its digital services.
The partners will jointly develop support business for regional banks and other financial institutions.