Sumitomo Mitsui Financial Group and SBI Holdings Launch Joint Wealth Management Venture

Sumitomo Mitsui Financial Group and SBI Holdings are partnering for a wealth management venture. Sumitomo Mitsui Financial Group is a Japan-based company that offers various financial services including banking, leasing, securities, and consumer finance. The partnership aims to provide new investment opportunities and strengthen their presence in the wealth management market.

Sumitomo Mitsui Financial Group (SMFG) and SBI Holdings have announced a significant partnership aimed at establishing a wealth management joint venture. The new venture, which will be operational by spring 2026, is designed to enhance the capabilities of SMFG's Olive platform, a digital service integrating banking, payment, and investment offerings. The joint venture 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%) [1].

The preparatory company for this joint venture is expected to be established by July 2025, subject to regulatory approval. The initiative 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 [1]. Additionally, SBI Securities was integrated into the Olive app in 2023, currently serving over 5.7 million customers [1].

The primary goal of the joint venture is to address shifting customer preferences driven by digitalisation. 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. The service will offer visualisation of multi-bank assets through Money Forward and allow the completion of securities transactions within the Olive app [1].

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. This joint venture is part of a broader trend in Japan’s financial sector, with similar partnerships emerging to tap into the growing wealth market [1].

SMFG's chief executive officer, Toru Nakashima, stated that the widespread adoption of mobile financial services is expected to accelerate the growth of the digital affluent segment, creating a significant market opportunity. The joint venture aims to become profitable in three years and targets pre-tax profits of ¥10 billion in five years [2].

The partnership between SMFG and SBI Holdings highlights the increasing interest in the wealth management sector in Japan, where high-net-worth households are expected to grow steadily. According to projections from the Daiwa Institute of Research, the share of households with financial assets of ¥50 million ($347,000) is expected to increase from 5% in fiscal 2019 to 6.1% by the end of fiscal 2035. Over the same period, total financial assets held by these households are forecast to grow by about a third, from ¥714 trillion at the end of fiscal 2024 to ¥953 trillion by the end of fiscal 2035 [3].

References:
[1] https://finance.yahoo.com/news/sumitomo-mitsui-financial-group-sbi-072216977.html
[2] https://www.japantimes.co.jp/business/2025/06/16/sumitomo-mitsui-sbi-wealth-management-venture/
[3] https://m.economictimes.com/industry/banking/finance/banking/sbi-and-smfg-set-sights-on-69-bn-treasure-in-japans-digital-wealth-boom/articleshow/121878615.cms