Japan's Sumitomo Trust & Banking is teaming with venture capital firm SBI Holdings to launch a direct banking operation later this month.
The 50:50 JV, called SBI Sumishin Net Bank, will offer Internet, mobile and telephone-based IVR services, including fund transfers, loans and yen foreign currency deposit and remittance.
Eventually, customers will be offered account aggregation services through an alliance with another SBI unit - SBI E*Trade Securities Company. Customers will be able to access brokerage accounts via SBI Sumishin Net Bank's Web site.
In a statement Sumitomo Trust and SBI say the new bank is aiming to have 600,000 accounts and Y1 trillion in deposits by its fifth year.
The new direct bank will compete existing online banks in the Japanese market - including Sony Bank and Sumitomo Mitsui Banking subsidiary Japan Net Bank.
Dutch bank ING is also planning to launch direct banking services in the country in the second half.