Sumitomo Mitsui Financial Group, Japan’s second-largest lender, has ventured into the US consumer banking market with the launch of a new digital banking service, Reuters reported.
The bank aims to leverage growth opportunities in the US through its subsidiary, Manufacturers Bank, a California state-chartered bank wholly owned by the group.
The digital service, starting with a team of 270, provides personal loans initially, with more offerings, including a savings product, planned for the coming months.
The digital banking operation seeks to generate a net profit in the hundreds of millions of dollars within a decade, according to Daisuke Tanaka, an executive at the bank’s corporate development group.
“We’re starting small with a long-term vision,” Tanaka said at a media briefing. He further expressed the bank’s ambitious long-term goal: “But we eventually want to have a solid presence in the United States.”
The move signifies Sumitomo Mitsui’s strategy to diversify and expand its footprint beyond its domestic market.
BusinessNewsAsia