SMFG and SBI target affluent Japanese with $69bn plan
Sumitomo Mitsui Financial Group (SMFG) and SBI Holdings are joining forces to launch a new wealth management venture, aiming to handle ¥10 trillion ($69 billion) in assets within five years.
They're setting their sights on Japan's growing group of digital-savvy, high-net-worth individuals as more people look for smarter ways to manage their money.
Venture backed by multiple major players
The venture is funded by big names like SMFG, Sumitomo Mitsui Banking Corp., SMBC Nikko Securities, SBI Holdings, and SBI Securities.
SMFG CEO Toru Nakashima believes mobile banking will be key to reaching this market.
The goal: turn profitable in three years and hit ¥10 billion in pre-tax profits by year five.
Wealthy households in Japan are on the rise
Research shows wealthy households in Japan are on the rise—expected to grow from 5% in 2019 to 6.1% by 2035—with their total assets jumping by about a third.
This move also lines up with government efforts encouraging people to invest beyond just bank deposits, especially as Japan faces an aging population and fewer young people.