Money Forward and Sumitomo Mitsui Banking Form Digital Banking Joint Venture

Money Forward and Sumitomo Mitsui Banking have formed a digital banking joint venture. The partnership aims to provide innovative financial services to customers.

Money Forward, Inc. and Sumitomo Mitsui Banking Corporation have finalized a joint venture agreement to form SMF Inc., a new subsidiary focused on digital banking and Banking-as-a-Service (BaaS) initiatives [2]. The partnership aims to leverage technology to enhance financial services and streamline banking operations, marking a significant step in their respective digital transformation strategies.

The joint venture, equally owned by Money Forward and Sumitomo Mitsui Banking Corporation, will operate as a standalone entity. This strategic move is expected to bolster the market positioning and operational capabilities of both companies in the financial technology sector.

Money Forward, Inc. operates in the financial technology industry, offering digital banking and BaaS services. Sumitomo Mitsui Banking Corporation, on the other hand, is a subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG), which has been actively expanding its presence in the Indian market.

The formation of this joint venture comes at a time when SMFG is exploring an additional investment in Yes Bank Ltd. SMFG is considering making an additional $1.1 billion investment in Yes Bank, following a previous investment made by Japan’s second-biggest bank two months ago [4]. The fresh investment would bring the total amount to $2.7 billion, giving SMFG a roughly 25% stake in Yes Bank.

This move aligns with SMFG's broader strategy of investing in strategic assets and partnerships in India. In March last year, SMFG spent $700 million to take full control of Fullerton India Credit Co., following an initial $2 billion stake purchase in 2021 [4].

The joint venture between Money Forward and Sumitomo Mitsui Banking is set to commence operations by the end of this fiscal year, with a focus on providing innovative financial services to customers [1].

References:
[1] https://www.marketscreener.com/news/money-forward-sumitomo-mitsui-banking-form-digital-banking-joint-venture-ce7c5cdcd188f620
[2] https://www.tipranks.com/news/company-announcements/money-forward-and-smbc-group-finalize-joint-venture-agreement
[4] https://www.ndtvprofit.com/business/sumitomo-mitsui-said-to-eye-11-billion-additional-investment-in-yes-bank