Sumitomo Mitsui Financial Group and SBI Holdings have announced a business alliance to establish a wealth management joint venture.  

The venture aims to enhance the capabilities of Sumitomo Mitsui Financial Group’s Olive platform, a digital service integrating banking, payment, and investment offerings.  

A preparatory company is expected to be established by July 2025, subject to regulatory approval, with operations beginning in spring 2026. 

The new company will be jointly owned by SMBC Nikko Securities (30%), SBI Securities (30%), Sumitomo Mitsui Banking Corporation (20%), Sumitomo Mitsui Financial Group (10%), and SBI Holdings (10%).  

It builds on a capital and business partnership formed in 2020 between the two Japanese entities. 

Since the 2020 alliance, several initiatives have been introduced, including the Sumitomo Mitsui Card Accumulated Investment programme in 2021, which now exceeds Y85bn ($555.4m) in monthly transactions.  

Additionally, SBI Securities was integrated into the Olive app in 2023, which currently serves over 5.7 million customers. 

The joint venture aims to address shifting customer preferences driven by digitalisation, according to the announcement.  

While more individuals are transacting online, many still seek expert guidance for complex financial decisions.  

In response, the upcoming “Olive Infinite” service will combine digital capabilities with personalised consulting under the “Flexible Consulting” model. 

Customers will have access to advisory services via artificial intelligence chat, phone, video, or in-person at Olive Lounges.  

Customers can choose consultants based on their expertise and, from the second session onward, designate or switch dedicated advisors. 

The service will offer visualisation of multi-bank assets through Money Forward and allow the completion of securities transactions within the Olive app. 

According to Bloomberg, Japanese policymakers are urging individual investors to shift their funds toward higher-risk investments like stocks to reduce dependence on government expenditure, especially as the aging population puts pressure on social security budgets.  

In a similar vein, partnerships are emerging within Japan’s securities sector.  

Rakuten Securities, for instance, formed a joint venture with Mizuho Securities, building on their existing capital and business alliance, and launched operations in April of the previous year.