Japan’s NTT Docomo to acquire SBI Sumishin Net Bank for $2.9bn

By Gloria Methri

NTT Docomo, the mobile arm of Japan’s Nippon Telegraph and Telephone Corporation (NTT), is set to acquire a majority stake in SBI Sumishin Net Bank for approximately $2.9 billion (JPY 450 billion). The transaction marks a significant development in Japan’s digital banking sector and reflects broader shifts in the country’s financial services landscape.

SBI Sumishin Net Bank, founded as a joint venture between SBI Holdings and Sumitomo Mitsui Trust Bank, has operated as one of Japan’s leading online-only banks. It provides a range of digital banking services to individual and corporate clients, and is among the first in Japan to operate entirely without physical branches.

Under the terms of the agreement, NTT Docomo will acquire shares from both existing shareholders, SBI Holdings and Sumitomo Mitsui Trust Bank, thereby gaining a controlling interest in the online lender. Following the completion of the transaction, SBI Holdings and Sumitomo Mitsui Trust Bank are expected to retain their minority stakeholdings.

The acquisition will allow NTT Docomo to expand its involvement in the financial services sector, particularly in digital banking. The move also follows a pattern of increased integration between telecommunications and financial services firms in Japan, as companies respond to changing consumer habits and seek to diversify their business models.

Japan has witnessed a growing demand for digital banking solutions, driven by demographic trends, mobile penetration, and efforts to promote cashless payments. Virtual banks such as SBI Sumishin Net Bank have capitalised on this trend by offering low-cost, technology-driven services that appeal to a digitally active customer base.

The deal remains subject to regulatory approvals and other customary conditions. Once finalised, NTT Docomo will be positioned to oversee the operations of the online bank and consider new areas of development in financial technology.

This acquisition represents a continued shift in Japan’s banking environment, where established firms from outside the traditional banking sector are increasingly playing a more prominent role in providing financial services.