Sumitomo Mitsui to enter online banking biz in U.S.

Jiji Press

14:54 JST, August 24, 2022

TOKYO (Jiji Press) — Sumitomo Mitsui Financial Group Inc. will shortly announce a plan to launch an online banking business in the United States, it was learned Tuesday.

The major Japanese financial group will set up an online banking division at U.S. subsidiary Manufacturers Bank, according to informed sources.

The new unit will offer loans for retail customers from next year and will later start other operations including handling savings accounts. It may also deal with investment trust sales.

Sumitomo Mitsui has already invested $150 million for the new business in the United States.

The Japanese company aims to develop the U.S. online banking unit, so it can generate tens of billions of yen in profits a decade later.

Among other major Japanese banking groups, Mitsubishi UFJ Financial Group Inc. has decided to withdraw from U.S. retail banking business. The group reached an agreement last year to sell all of its shares in MUFG Union Bank, its U.S. regional banking subsidiary.