Mizuho Bank, one of Japan’s largest banks and SoftBank, a Japanese telecom and internet giant, announced they are setting up a new joint venture to offer the country’s first score lending online service.
The joint venture agreement is expected to be finalized in November and the service to launch in the first half of 2017. The yet unnamed company will be under a new brand and will be a “low cost operation without shops”. The new lending fintech service will be offering consumer lending based on the client’s credit score, via a smartphone application. The new service will utilize a scoring model that combines Mizuho Bank’s big data and credit score analysis know-how and SoftBank’s big data analysis AI tool to offer a competitive interest rate.
The starting capital of the new company will be JPY 5 billion and each of the two partners will have a 50% share in it.
Mizuho Bank is the retail and corporate banking unit of one of Japan’s largest financial services corporations – Mizuho Financial Group. The bank is one of the three so-called Japanese “megabanks” (along with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group). The bank has offices and branches throughout Japan and 36 other countries. It offers a wide array of services to retail clients, SMEs, large companies, corporations and public sector entities.
SoftBank is a Japanese multinational telecommunications and Internet corporation. It has operations in broadband, fixed-line telecommunications, e-commerce, Internet, technology services, finance, media and marketing, semiconductor design, and other businesses. SoftBank is ranked as the 62-nd largest public company in the world in the Forbes Global 2000 list. It is Japan’s third largest public company in Japan after Toyota and Mitsubishi UFJ Financial.