Sony To Open Online Bank - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Sony To Open Online Bank

Sony Corp. has filed for permission to open an online bank in Japan. Sony Bank Corp. is set to open in mid-June with about 80 employees. Sony will own 80% of the bank, Sakura Bank will control 16%, and J.P. Morgan Chase will have a 4% stake. The three will initially invest a combined $322 million in the venture.

In a statement, Sony said the bank will "exploit the special merits of the Internet" and target individual customers rather than institutions. The bank won't have physical outlets, but customers will be able to use ATMs at stores and branches of Sakura Bank. It will initially offer personal accounts, trusts, and payment services, but plans within a year to add foreign-currency deposits, credit cards, and home loans. Sony says the bank will turn a profit in three years, with 400,000 accounts and deposits totaling $5.2 billion. In five years, the company is projecting deposits of $8.6 billion and 600,000 accounts.

"They have been hinting and working on an online bank for about a year," says Paul Jamieson, an analyst with Gomez Advisors. He says banking is a natural extension of Sony's business. While the company is known primarily for consumer electronics in the United States, it has a much broader stance in Japan, Jamieson says, and already has financial services businesses such as insurance and brokering.

"People are getting more and more used to consumer brands extended into other areas," Jamieson says. He points out that General Motors has had some success with online banking and credit-card businesses in the United States, and says it probably won't be long until Sony expands its banking business into other markets. "The clue to them doing so is the tie-in with J.P. Morgan," Jamieson says. "I imagine that J.P. Morgan has an idea that this thing is going to be bigger than just an online bank."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Commentary
Is Cloud Migration a Path to Carbon Footprint Reduction?
Joao-Pierre S. Ruth, Senior Writer,  10/5/2020
News
IT Spending, Priorities, Projects: What's Ahead in 2021
Jessica Davis, Senior Editor, Enterprise Apps,  10/2/2020
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll