This development marks a true milestone in terms of the global development of Japanese banks.
We have already seen Japanese insurers using M&As as they seek to internationalize their operations, including telematics-based auto insurance, as they enter the fray in cutting-edge financial services in mature markets.
Until now, overseas expansion in Japan’s banking sector has typically started with transaction banking and hinged on wholesale operations (trade finance, foreign exchange, and investment banking services to support the overseas development activities of Japanese companies).
This initiative signifies an expansion into retail operations of locally incorporated subsidiaries in North America with which the bank has a long history and abundant goodwill. This initiative will also provide valuable feedback that can be applied to the Japanese market. To succeed in this market will require meeting the needs of the millennial generation with state-of-the-art technologies such as IoT and AI and conducting operations in a way to develop next-generation digital financial services.
Celent Report Recommendation: Defining a Digital Financial Institution: What “Digital” Means in Banking