Japan’s Sumitomo Mitsui Financial Group (SMFG) is about to take a 10% stake in SBI Holdings. Local media reports noted that the investment deal could be worth JPY 60 billion or $443 million. Also, as part of the deal, SBI will have a small stake in SMFG, as it wants to improve its securities business domestically. SBI also plans to introduce its securities business to the retail banking customers of SMFG via a partnership deal.
SMBC Nikko Securities is the company’s brokerage unit, which has been facing investigation. Some of the company’s executives were charged with alleged market manipulation. SMBC Nikko is still investigating the matter As it stands, SBI Group is the fourth largest bank in Japan, behind Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui.
SBI owns Japan’s Largest Brokerage Business
While SBI is still lagging in terms of banking business in Japan, the company is the leading online brokerage firm in the country. SBI controls several businesses and has partnered with a lot of companies in the past. The company is an asset manager and an online bank, apart from its fruitful brokerage business.
Last year, SBI made a $1 billion tender offer for Shindein Bank, increasing its stake in the midsize lender. The company hopes to create a national network with the investment.
SBI Also Has A Stake In Sygnum Bank
Last December, SBI Holdings invested in Coinhako, one of the largest crypto exchanges in Singapore. SBI and Sygnum Bank of Switzerland set up a fund for the investment. In terms of retail trading, Sygnum Bank still maintains the biggest volume and largest customer base in the country. The platform provides a wide range of regulated crypto asset trading services for clients in the region.
SBI has been focusing on its expansion over the past two years. The investment in Coinhako by the company is part of its international expansion strategy. With the investment, Coinhako’s global business growth will be supported by the SBI Group. According to SBI, the plan is to invest the fund in startups in the global economy.