Subsidiary of S. Korea's Naver plans to open online bank in Japan

By Park Sae-jin Posted : November 28, 2018, 13:21 Updated : November 28, 2018, 13:21

[Courtesy of LINE]


SEOUL -- LINE, the Tokyo-based message app operator affiliated with South Korea's top web portal Naver, will team up with a Japanese financial group to establish a joint venture online bank targeting a niche market in a country where cash is still widely used.

LINE, which has about 78 million monthly active users in Japan, said in a statement Tuesday that it would cooperate with Japan's Mizuho Financial Group to provide a variety of convenient financial services.

Smartphone banking apps or internet banking services are flourishing in many countries. However, many Japanese still prefer cash to credit or debit cards, accounting for 20 percent of total transactions in 2016.

Japanese digital banks have gradually gained attention among young smartphone-friendly people. Jibun Bank, Japan's first mobile-only bank established in 2008, has about 3.1 million accounts and cooperates with mobile telecom operators to provide quick and convenient financial technology (fintech) services.  
 
SBI Sumishin Net Bank, which has about 3.2 million accounts, attracts young customers with low mortgage rates and other benefits such as free refinancing services and mortgage insurance.

South Korea allowed mobile-only banking services in 2017. K-bank, a consortium led by the country's top telephone operator KT and 20 other companies including Chinese e-commerce giant Alibaba's digital payment platform Alipay, was launched in April last year.

 
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