Japan’s Sumitomo Mitsui launches US digital bank

SUMITOMO Mitsui Financial Group has launched a digital banking service in the United States, as Japan’s number two lender aims to tap growth in the US consumer banking market, a bank executive said on Wednesday (Jul 12).

Sumitomo Mitsui is providing personal loans through a newly created online banking division of Manufacturers Bank, a California state-chartered bank wholly owned by the Japanese group.

Starting with a 270-strong workforce, the digital banking service targets some tens of billions of yen (hundreds of millions of dollars) in net profit within 10 years, said Daisuke Tanaka, an executive at the bank’s corporate development group.

It plans more offerings in the coming months, including a savings product.

“We’re starting small with a long-term vision,” Tanaka told a media briefing. “But we eventually want to have a solid presence in the United States.” REUTERS