SBI Sumishin Net Bank

Basic Information

Stock Code
7163
Industry
Banking
Category Detail
Banks
Prefecture
Tokyo
Establishment Year
June 1986
Listing Year
March 2023
Official Website
https://www.netbk.co.jp/contents/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Rakuten Bank, Seven Bank, SBI, NTT Data

Overview

SBI Sumishin Net Bank is a leading Japanese online bank founded in 1986, excelling in housing loans and BaaS platform provision as a telecommunications-finance integrated company.

Current Situation

SBI Sumishin Net Bank achieved consolidated sales of approximately 118.5 billion yen and ordinary income of approximately 34.8 billion yen in the fiscal year ending March 2024. As an online bank, it holds the second-largest deposit balance in Japan after Rakuten Bank, with the third-largest number of accounts domestically. Its core housing loan business enables rapid responses through online applications and is advancing service diversification, such as no-guarantee-fee proper loans. BaaS-based banking service platform provision has partnered with diverse companies like Japan Airlines, Takashimaya, and Yamada Denki to expand its revenue base. Collaboration with SBI Securities allows immediate use of securities funds via hybrid deposits. It listed on the Tokyo Stock Exchange Standard Market in March 2023, with NTT Docomo scheduled to acquire the majority of shares in 2025, strengthening its telecommunications-finance fusion strategy. It focuses on digital services like smartphone ATMs and numberless debit cards to enhance customer convenience. Furthermore, it aims to strengthen competitiveness and achieve growth through digitalization and diversification strategies for the future.

Trivia

Interesting Facts

  • Boasts second-largest deposit balance among domestic online banks
  • First online bank to list on TSE Standard Market
  • Joint venture between Sumitomo Mitsui Trust Bank and SBI Holdings
  • Pioneered smartphone ATM-based online banking services in Japan
  • Early adopter of numberless MasterCard debit cards
  • Provides banking functions to diverse industries via BaaS services
  • High online completion rate for housing loans emphasizing convenience
  • Hybrid deposits immediately reflected in SBI Securities purchase funds
  • Planned strengthening of telecom-finance fusion via NTT Docomo capital alliance
  • Japanese residents aged 15+ can hold only one account per person

Hidden Connections

  • Links with SBI Securities for direct integration of securities trading funds into online banking functions
  • Strategic company pursuing fusion of finance and telecom sectors through NTT Docomo collaboration
  • Jointly operates JAL NEOBANK with Japan Airlines Group to strengthen partnerships
  • Issues original debit cards for each diverse partner company
  • Smartphone ATM technology enables biometric deposits/withdrawals at convenience store ATMs nationwide
  • Collaborates with major real estate firm Asahi Kasei Homes Group on housing loans
  • Large-scale points-attached accumulation deposit campaign generated SNS buzz
  • Leverages trust bank network through joint investment with Sumitomo Mitsui Trust Bank

Future Outlook

Growth Drivers

  • Expansion of online banking market and rising digital finance demand
  • Strengthened collaborations with non-financial companies via BaaS
  • New service creation through capital collaboration with NTT Docomo
  • Expansion of multi-currency foreign deposits and overseas remittance services
  • Promotion of mobile financial services like smartphone ATMs
  • Expansion of high-convenience housing loan product lineup
  • Customer retention through enhanced points rebates
  • Customer trust enhancement via security improvements
  • Revenue diversification through expanded partner collaborations
  • 対応 to environment, society, governance (ESG) management
  • Expansion of asset management services like robo-advisors
  • Operational efficiency via AI/data utilization

Strategic Goals

  • Enter top 3 domestic deposit balance rankings and expand share
  • Achieve over 50 domestic and international BaaS partners
  • 20% increase in new revenue from telecom-finance fusion services
  • Maintain over 90% housing loan customer satisfaction
  • Achieve over 70% smartphone ATM usage rate
  • Promote green finance considerate of the environment
  • Continuous strengthening of cyber security framework
  • Build digital financial education platform
  • Deploy personalized products for diverse customer segments
  • Promote employee diversity and ensure work-friendliness

Business Segments

BaaS Platform Provision

Overview
Provides services leveraging banking license to partner companies to expand customer base and diversify revenue.
Competitiveness
Strengthens revenue base through BaaS collaborations with diverse companies
Customers
  • Japan Airlines Group
  • Takashimaya
  • Yamada Denki
  • Keio Passport Club
  • Matsui Securities
  • Dai-ichi Life Insurance
  • USEN Group
  • Sansan Co., Ltd.
  • Chubu Electric Power Miraiz
  • SBI-related Companies
  • Telecom Carriers
  • Regional Banks
Products
  • Bank Platform Provision
  • Account Opening Service Intermediation
  • Custom Debit Card Issuance
  • Payment Services
  • Points-Attached Accumulation Deposits
  • Corporate Financial Services
  • Smartphone ATM Integration
  • Foreign Currency Services
  • Housing Loan Administrative Agency
  • Net Loan Provision
  • Deposit Reconciliation Services

Housing Loan Business

Overview
Leverages online bank convenience to provide low-cost housing loans without guarantee fees across a wide area.
Competitiveness
Fully online applications and low fees as key differentiators
Customers
  • Individual Customers
  • Real Estate Companies
  • Housing Manufacturers
  • Recruit
  • Housing Loan Referral Agents
Products
  • Fully Online Housing Loans
  • Variable Rate Type
  • Fixed Rate Type
  • Proper Loan
  • Loans with 8 Disease Coverage

Card Loan Business

Overview
Provides cardless loans, with interest discounts realized through SBI Securities collaboration.
Competitiveness
Preferential system via securities account linkage
Customers
  • Individual Customers
  • SBI Securities Account Holders
Products
  • Premium Course Card Loan
  • Standard Course Card Loan

Overseas Remittance and Foreign Currency Services

Overview
Provides multi-currency forex transactions and overseas remittance services at low fees.
Competitiveness
Real-time exchange rates and online operations
Customers
  • Individual Customers
  • SMEs
  • Importers/Exporters
Products
  • Foreign Currency Ordinary Deposits
  • Foreign Currency Fixed Deposits
  • Overseas Remittance Receipt
  • Foreign Currency Remittance Services

Digital Payment Services

Overview
Deploys diverse brand debit cards and smartphone-linked payments.
Competitiveness
Numberless cards and high rebate rate points
Customers
  • General Individuals
  • Corporates
  • Partner Retail Stores
Products
  • VISA Debit Cards
  • MasterCard Debit Cards
  • Smartphone Debit
  • Points Rebate Program

Pure Gold Accumulation Business

Overview
Provides regular pure gold accumulation services startable from small amounts.
Competitiveness
Accessible gold accumulation for low-price segments
Customers
  • Individual Asset Managers
  • Investors
Products
  • Pure Gold Accumulation Dollar-Cost Averaging
  • Monthly Accumulation
  • Fee-Free Sales

Robo-Advisor Services

Overview
Deploys automated asset management services through partner companies.
Competitiveness
Seamless bank integration
Customers
  • Individual Investors
  • Asset Management Beginners
Products
  • WealthNavi for SBI Sumishin Net Bank

Corporate Banking Services

Overview
Provides a wide range of corporate accounts and operational support services.
Competitiveness
Operational efficiency via partner company collaborations
Customers
  • Corporate Customers
  • Business Companies
  • Trading Partner Companies
Products
  • Corporate First Branch Account Opening
  • Deposit Reconciliation Services
  • Payment Management
  • Loan Transactions

Financial Service Collaboration Business

Overview
Promotes sharing of financial networks and service collaborations.
Competitiveness
Customer attraction enhancement through synergies
Customers
  • SBI Group Companies
  • National Federation of Agricultural Cooperatives
  • Regional Banks
Products
  • Account Opening Agency
  • Joint Financial Platform Development
  • System Integration

Smartphone ATM-Related Services

Overview
Improves ATM deposit/withdrawal convenience using smartphone apps.
Competitiveness
Advanced smartphone integration technology
Customers
  • Individual Customers
  • Partner ATM Operators
Products
  • Smartphone ATM Deposits/Withdrawals
  • Smartphone Debit Integration
  • Virtual Card Services

Account Direct Debit Assist Service

Overview
Implements account direct debit operational support services per corporate requests.
Competitiveness
Customizable direct debit support system
Customers
  • Corporate Customers
  • Business Companies
Products
  • Direct Debit Management
  • Deposit Reconciliation Support

Housing Loan Agent Services

Overview
Implements sales agent support services for housing loans.
Competitiveness
Strong network with agents
Customers
  • Housing Loan Agents
  • Housing Sales Companies
Products
  • Housing Loan Intermediation
  • Agent Support

Competitive Advantage

Strengths

  • Second-largest deposit balance among domestic online banks
  • Integration of housing loans and BaaS business
  • Proven track record of collaborations with diverse partner companies
  • Strong service integration with SBI Securities
  • High-function smartphone ATM service
  • Pioneer in numberless debit cards
  • Introduction of high-speed digital authentication systems
  • Fully online procedures
  • Wide foreign currency transaction support
  • Abundant physical loan plazas
  • Strategic capital alliance with major telecom carriers
  • Advanced risk management and governance
  • Comprehensive purpose-specific account services
  • Rich product lineup
  • Diverse customer base

Competitive Advantages

  • Industry leader with partner company base across multiple sectors
  • BaaS enables banking functions for numerous non-financial companies
  • SBI Securities linkage realizes non-stop trading environment
  • First online bank to list on TSE, enhancing credibility
  • High convenience via diverse ATM partnerships
  • Customer attraction strengthened through housing loan agent collaborations
  • Deployment of advanced digital services like smartphone ATMs
  • Diverse customer support via multi-currency foreign exchange services
  • Enhanced security services with numberless cards
  • Customer retention via high-rebate points program
  • Strong funding capabilities and highly transparent operations
  • Accelerates telecom-finance fusion via NTT Docomo capital alliance
  • One-stop provision of diverse financial products
  • Stable management backed by extensive financial experience of executives and employees
  • Proactive security enhancements

Threats

  • Intensifying competition among online banks squeezing margins
  • Strengthening of online services by traditional major banks
  • Risk of deteriorating earnings environment from financial regulation changes
  • Risk of failed collaborations with telecom carriers
  • Increasing threats from cyber attacks and data breaches
  • Earnings pressure from sudden market interest rate fluctuations
  • Rise of new fintech entrants
  • Reduced personal consumption due to economic uncertainty
  • Increasing customer credit risk
  • Competitiveness decline from delayed tech investments
  • Stagnation in digital financial service adoption rates
  • Chain reaction impacts from partner company management deterioration

Innovations

2023: First Online Bank Listing on TSE Standard Market

Overview
Achieved first domestic online bank listing on the Tokyo Stock Exchange Standard Market.
Impact
Realized strengthened funding capabilities and elevated corporate brand.

2024: Numberless Debit Card Issuance Launch

Overview
Introduced security-focused debit cards without surface card numbers.
Impact
Enhanced customer security, increasing brand trust.

2024: Smartphone ATM Integration Service Enhancement

Overview
Smooth deposits/withdrawals across multiple ATM networks via smartphone app.
Impact
Significantly improved customer convenience, contributing to increased usage.

2025: Capital and Business Alliance with NTT Docomo

Overview
NTT Docomo scheduled to acquire majority of SBI Sumishin Net Bank shares, strengthening capital ties.
Impact
Expectations for new service creation through telecom-finance fusion.

2024: BaaS Platform Service Expansion

Overview
Provided banking function platforms to diverse business companies, realizing revenue diversification.
Impact
Expanded partners, achieving increased fee income.

2024: Yamada Accumulation Deposit Program Launch and Withdrawal

Overview
Launched high-points-rebate accumulation deposit service but suspended benefits due to overwhelming applications.
Impact
Gained experience in risk management importance and rapid market reactions.

Sustainability

  • Cashless promotion to reduce environmental impact
  • Ongoing digital authentication and security enhancements
  • Promotion of regional financial support and social contributions
  • Improved transaction transparency and customer data protection
  • Participation in financial education programs
  • Energy-saving office operations
  • Promotion of remote work and diverse working styles
  • Strengthened CSR activities and social responsibility practices
  • Management strategy aiming for sustainable growth
  • Continuous deployment of customer satisfaction improvement measures