SBI Holdings and Fukushima Bank enter into capital and business alliance on November 11, 5:00
As local banks become more difficult to manage due to low interest rates and a declining population, new movements to accelerate survival through the combination of financial and IT-based fintech and regional banks are accelerating. “SBI Holdings”, which handles a wide range of securities, banking and insurance online, and Fukushima Prefecture's regional bank “Fukushima Bank” have formed a capital and business alliance to provide the latest financial services and strengthen their profitability.
According to officials, SBI Holdings, a major internet finance company, will invest in Fukushima Bank and become a major shareholder with shares in the upper 10% range.
The two companies will create joint stores as a result of the alliance, and provide investment trusts, insurance, mortgages, etc. handled by SBI to Fukushima Bank customers.
Furthermore, we aim to strengthen profitability by developing new services and reducing costs by utilizing FinTech, which combines SBI's strengths in finance and IT.
SBI has a concept of forming a new financial network similar to that of major banks in cooperation with regional banks nationwide, and in September, we decided to form a capital and business alliance with Shimane Bank in Shimane Prefecture.
Regional banks throughout the country continue to face harsh management conditions due to prolonged low interest rates and population decline, and it is drawing attention to the extent to which the unique combination of online finance and regional banks can change the financial industry's profit environment.
Promote cooperation with SBI Holdings regional banks
SBI Holdings has a securities company, a bank, and an insurance company specializing in Internet.
Among them, SBI Securities has increased the number of customers with cheap financial services such as keeping stock trading fees low, and the number of accounts exceeds 4 million and is the industry leader.
SBI Holdings is currently actively working with regional banks.
Already 10 local banks have jointly operated stores that handle financial products such as investment trusts.
In September, we decided to form a capital and business alliance with Shimane Bank in Shimane Prefecture.
President Yoshitaka Kitao advocates “Fourth Megabank Plan” to create a financial network lined up with major corporations by providing Fintech new services that integrate finance and IT to regional banks and by promoting common systems. The
More than 10 regional banks have expressed interest in the concept, and it will be noted whether the combination of regional banks and Internet finance, which continue to be harsh with low interest rates, will continue to spread.
SBI was originally founded in 1999 as part of the SoftBank Group, but is now independent of the SoftBank Group.
Fukushima Bank management improvement is halfway
“Fukushima Bank” is the second regional bank with a head office in Fukushima City and total assets of over 760 billion yen at the end of March.
With the BOJ's negative interest rate policy, interest rates on corporate loans and mortgages continued to decline, and profits from “loaning” in the main business decreased. Profits and losses fell into deficit.
For this reason, last year, in response to the “Business Improvement Order” from the Financial Services Agency, they were required to promptly increase profitability and create a sustainable business model over the medium to long term.
The Fukushima Bank has been working on cost reductions, including the replacement of the top management after receiving a deficit, and then coordinating ATMs with other financial institutions.
Although we achieved a surplus in last year's financial results, the final profit was only over 500 million yen, and management improvement is halfway.
In Fukushima Prefecture, fierce competition between the two regional banks, Toho Bank and Daito Bank, continued, and while seeking to survive, we decided to collaborate with a major internet finance company.