Japanese online finance company SBI Holdings has decided to forge a capital tie-up with business lender Towa Bank, Nikkei newspaper reported.
Under the arrangement, the companies will take small stakes in each other.
Go deeper with GlobalData
This is the fifth capital tie-up by SBI, which has set up the “Regional Bank Union Concept” with Towa Bank, the report added.
SBI aims to enter into similar capital tie-ups with a total of 10 regional banks.
The move is aimed at promoting tie-ups with regional banks that are affected by the decline in population and negative interest rates.
Under the agreement, SBI will provide Towa Bank with access to its technology and financial services.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe Maebashi City-based Towa Bank will use these services to improve its customer service.
Additionally, Towa Bank aims to boost its profitability through its capital tie-up with SBI, which has strength in fintechs – a combination of finance and information technology (IT).
Established in 1918, Towa Bank has 94 outlets in Gunma Prefecture and other areas in Japan, according to the newspaper.
The lender had nearly JPY1.98trn ($18.89bn) in deposits and JPY1.45trn ($13.84bn) in loans as of March 2020.
Back in 2009, the Japanese government injected public funds worth JPY35bn into the troubled lender.
So far, the government has repaid JPY20bn, the Nikkei report added.
