SBI Holdings Aims to Strengthen Capital Alliances with Japanese Regional Banks
SBI Holdings, a renowned financial services company headquartered in Tokyo, Japan, is reportedly working to enhance its capital alliances with regional banks in the nation. The firm is in discussions with Shimizu Bank and Tsukuba Bank to increase its ownership to 15% or more, appoint executives, and introduce its proprietary core banking system, as reported by Nikkei Asia.
SBI’s Plans for Deeper Collaboration
Should an agreement be reached, SBI plans to transfer shares to its subsidiary, SBI Shinsei Bank, which would also implement the new core system. These banks would then become equity-method affiliates of SBI Shinsei Bank. Shimizu Bank has expressed an interest in the SBI system, acknowledging its versatility and scalability, and plans to discuss further investment and executive appointments.
However, not all collaborations have been successful. Chikuho Bank, based in Fukuoka, announced the end of its partnership with SBI, citing unresolved differences. This marks the first withdrawal from SBI’s “fourth megabank” initiative, thereby reducing the number of participating regional banks from ten to nine.
Ready for the Second Phase
Despite this setback, SBI Holdings chairman and CEO Yoshitaka Kitao announced that the group was prepared to move to the second phase of their initiative. Aside from Shimizu Bank and Tsukuba Bank, SBI has alliances with Towa Bank, Shimane Bank, Fukushima Bank, Sendai Bank, Kirayaka Bank, Tohoku Bank, and Taiko Bank.
SBI’s involvement with regional banks began in 2019, with investments in Shimane Bank and Fukushima Bank, where its stakes exceed 30%. However, with most other banks, SBI’s stake remains around 3%, as regional banks have limited investment to maintain independence.
Second Phase and SBI Shinsei Bank
In the second phase of the initiative, SBI Shinsei Bank will be positioned as the core lender in the alliance. The initiative is built around a cloud-based core accounting system, developed in collaboration with Future Architect. Fukushima Bank and Shimane Bank have already adopted the platform, with others set to follow.
SBI Shinsei Bank has total assets of around Y20tn ($128bn), rising to more than Y30tn when considering partner banks. In a significant move in January 2025, SBI Holdings reportedly agreed to acquire a stake of over 70% in German fintech company Solaris.
This ongoing strategic effort by SBI Holdings is expected to strengthen its position in the regional banking sector, fostering stronger alliances and deepening its partnerships throughout Japan.
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