LINE Financial Corporation and Mizuho Bank have agreed to step up investment in their joint venture LINE Bank Preparatory Company to build a new smartphone bank in Japan.
LINE Bank Preparatory Company was established in 2019 through an agreement between LINE Financial and Mizuho Bank. The proposed smartphone bank will be established through this joint venture.
They also agreed to change the management structure of LINE Bank Preparatory Company.
The proposed venture will be integrated with the LINE app and expected to be rolled out in the fiscal year 2022, subject to relevant regulatory approvals.
Prior to the launch of their new bank, LINE Financial and Mizuho Bank would invest JPY12bn ($113.86m), increasing LINE Bank Preparatory Company’s total capital reserves to JPY16.5bn ($156.56m).
Besides, Mizuho Bank would appoint a co-CEO in addition to the current CEO of LINE Bank Preparatory Company to be equal partner in the venture.
LINE Corporation started as messaging app in 2011 and ventured into AI, fintech and more. Earlier this month, LINE Corporation’s subsidiary, Line Bank received a licence to launch digital bank in Taiwan.
The Mizuho group offers services in retail banking, corporate finance, investment banking, asset management and others. It spreads across 40 countries with an asset value of $2.1 trillion.