Japan’s GMO Click Holding (TYO:7177) and Aozora bank (TYO:8304) announced their plans to launch a “next generation internet bank” in 2017 by becoming partners in the existing Aozora Trust Bank.
According to the press release, pursuant to the talks that started in June last year among GMO Click Holding, its subsidiary GMO Internet and Aozora bank, the parties have set up a joint venture, which will provide internet banking and financial technology services. “Through this planned partnership, we aim to offer new financial services by taking advantage of the innovations derived from integrating finance and technology”, said the companies in the statement to the media.
The new undertaking will use the internet platform of GMO Internet, which specializes in internet infrastructure, online advertising and media and mobile entertainment, and the banking experience of Aozora to offer new lending products, mostly aimed at the small business. GMO Holding is also planning to offer some of the services of its subsidiary, the forex broker GMO Click Securities, alongside the banking products.
The setting up of the new bank is pending regulation.
GMO Click Holding is a financial holding company, established in 2012. Its consolidated total assets as of end of 2015 were JPY 450.9 billion. Its subsidiary GMO Internet had consolidated total assets of JPY 554 billion. GMO Click Securities, which will be offering some of its services through the new internet banking platform, is the world’s largest forex broker in terms of trading volumes in February 2016. It offers online trading of forex, CFDs and precious metals. It also provides various financial instruments to retail investors.
Aozora Bank was established in 1957 and as of December 31, 2015 had consolidated total assets of JPY 4.7 trillion. Its subsidiary Aozora Trust Bank’s assets totaled JPY 6.5 billion as of end of September 2015.