Japanese megabanks roll out new services to tap lucrative SME market
The segment is equivalent to 2.5 times the amount of lending to large corporations.
Japanese megabanks have recently introduced new financial services tailored for small and midsize enterprises (SMEs). This strategy aims to capitalize on the growing funding demand from these businesses and boost profitability as the Bank of Japan has increased interest rates in a tightening policy move.
Sumitomo Mitsui Banking Corp. (SMBC) has rolled out Trunk, an online platform offering integrated account opening, payments, and accounting operations. This service is designed to enhance convenience for SMEs, enabling them to manage crucial tasks like invoice payments through their smartphones. Additionally, Trunk incorporates an AI feature that informs users about potential government and other subsidies.
Mizuho Bank has also begun offering services targeted at SMEs. These moves by Japan's major banks reflect their recognition of the significant funding needs of SMEs and the opportunity to expand their customer base and earnings.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
