SBI Holdings is pursuing stronger capital alliances with Japanese regional banks, seeking to raise its stakes and deepen collaboration, reported Nikkei Asia.
The company is in discussions with Shimizu Bank and Tsukuba Bank to increase ownership to 15% or higher, appoint executives, and introduce its proprietary core banking system.
If agreements are reached, shares would be transferred to subsidiary SBI Shinsei Bank, which would also implement the new core system.
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These banks would then become equity-method affiliates of SBI Shinsei Bank.
Shimizu Bank stated it will consider the SBI system, versatile and scalable and plans to discuss further investment and executive appointments.
Chikuho Bank, based in Fukuoka, announced the end of its partnership with SBI, citing unresolved differences.
This move marks the first withdrawal from SBI’s “fourth megabank” initiative, reducing the number of participating regional banks from ten to nine.
On the same day, SBI Holdings chairman and CEO Yoshitaka Kitao said the group was ready “to move to the second phase.”
Besides Shimizu Bank and Tsukuba Bank, SBI holds alliances with Towa Bank, Shimane Bank, Fukushima Bank, Sendai Bank, Kirayaka Bank, Tohoku Bank, and Taiko Bank.
SBI’s involvement 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.
According to a source close to SBI, this has led to “situations where business resources have not been mobilized sufficiently.”
In the second phase, SBI Shinsei Bank will be positioned as the core lender in the alliance.
The initiative centres on a cloud-based core accounting system, developed with Future Architect.
Fukushima Bank and Shimane Bank have adopted the platform, with others set to follow.
SBI Shinsei Bank has total assets of roughly Y20tn ($128bn), rising to more than Y30tn including partner banks.
In January 2025, SBI Holdings reportedly agreed to acquire a stake of over 70% in German fintech company Solaris.
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