News On Japan

NTT Docomo Moves into Banking Sector

TOKYO - NTT Docomo is set to acquire major online bank Sumishin SBI Net Bank as it prepares to enter the banking sector, marking a significant shift for the mobile carrier as it looks to catch up with rivals in the growing financial services space.

According to sources, Docomo plans to acquire a majority stake in Sumishin SBI Net Bank and make it a subsidiary. A formal resolution is expected to be passed at the company's board meeting on May 29th.

With revenue from telecom services having plateaued, Japan’s major mobile carriers have increasingly moved into financial services, including smartphone payments and reward programs, to create comprehensive customer ecosystems. This so-called “economic zone competition” has intensified in recent years.

While Docomo made its first move into finance by acquiring a securities firm two years ago, it has remained the only major carrier without a bank under its umbrella—a core component in financial service ecosystems. Industry observers have long pointed to this as a strategic weakness.

By bringing a bank with more than 8 million deposit accounts under its group and integrating services such as its smartphone payment platform “d-Barai,” Docomo aims to strengthen its presence in the financial services market and close the gap with competitors.

Sumishin SBI Net Bank was established in September 2007 as a joint venture between Sumitomo Mitsui Trust Bank, one of Japan's leading trust banks, and SBI Holdings, a financial services conglomerate known for its aggressive expansion in online finance. The bank was created to tap into the growing demand for internet-based banking in Japan, offering services that could be accessed entirely online without the need for physical branches. This model allowed the bank to operate at a lower cost than traditional banks while focusing on technological innovation and user convenience. From the outset, Sumishin SBI Net Bank differentiated itself through a wide array of digital banking services, including internet savings and checking accounts, housing loans, and asset management tools, all integrated into an easy-to-use platform that appealed particularly to tech-savvy and cost-conscious consumers.

Over the years, the bank steadily grew its customer base by capitalizing on the broader trend of digital transformation in the financial sector. It became particularly well-known for its competitive interest rates and low fees, which attracted users dissatisfied with traditional banks. In addition, it leveraged SBI Holdings’ broader financial ecosystem—including securities, insurance, and FX trading platforms—to cross-sell financial products and provide a more comprehensive suite of services. The strategic partnership with Sumitomo Mitsui Trust Bank also allowed the online bank to gain trust from conservative Japanese customers, thanks to the traditional bank's long-standing reputation and stability. By combining SBI’s fintech capabilities with Sumitomo Mitsui Trust’s institutional backing, the bank positioned itself as a hybrid model that could offer both innovation and reliability.

As the bank matured, it began investing more in technology-driven financial services, including AI-based lending assessments, online mortgage applications, and partnerships with mobile payment platforms. It also focused on expanding corporate banking and B2B financial infrastructure services, becoming a backend provider for fintech companies and e-commerce platforms. By the mid-2020s, Sumishin SBI Net Bank had become one of the largest and most influential internet banks in Japan, with over 8 million deposit accounts and a reputation for being a pioneer in digital banking. The bank's success reflected the broader shift in consumer behavior toward online and mobile financial services in Japan, a trend accelerated by the COVID-19 pandemic. Its acquisition by NTT Docomo in 2025 marked the beginning of a new phase, as Docomo aimed to integrate the bank into its broader ecosystem of mobile payments and financial services, positioning it at the center of a growing battle among telecom operators to dominate Japan’s “digital economy zones.”

Source: TBS

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