March 30, 2000
Strategic Alliance with Sony Corporation for Network Financial Business
The Sakura Bank, Limited (Akishige Okada, President) has reached an agreement with Sony Corporation (Nobuyuki Idei, President) on Sakura's cooperation/support for the establishment and management of a new Net Bank (New Bank) which Sony Corporation plans to set up.
The network business requires cutting-edge Information Technology, speed and flexibility toward changes. Sakura intends to extend cooperative relationship broadly with Sony Corporation to reinforce/expand network financial business.
Outline of the Alliance
Equity
Holding
(plan) |
Sakura will take stakes in 6 billion, 16% of the total capital (37.5 billion) of New Bank.
| Other equity-holders: | Sony Corporation | 30 billion (80%) |
| JP Morgan Group | 1.5 billion (4%) |
|
Directors
from Sakura |
One director is considered |
Personnel
from Sakura |
Several staff is considered |
| ATM |
Sakura will provide access to its ATM network |
Know-how
of Sakura |
Sakura will offer know-how of constructing systems as well as running business operations in order to establish Internet specialized bank, to secure a new profit opportunity. |
|
| Alliance Policy |
- Sakura is now focusing its management strategy on the network financial business field and regards this tie-up as part of strategic investment in promising companies in this business field.
- Sakura Bank, together with its strong partners, is preparing for establishing "Japan Net Bank" (provisional name), the first Internet / On-line Bank in Japan. Sakura considers that the targeted clients of Japan Net Bank are not necessarily same as the ones of New Bank, which would attract clients by the strong "Sony" brand. Sakura is going to enter this potential Sony brand market indirectly by this capital investment, and aims at covering the rapidly expanding Internet Banking market in Japan as broadly as possible.
- Sakura expands new profit opportunities by offering its business models originally created in the process of establishing "Japan Net Bank", such as net-banking related systems, and the establishment of its 1,000 convenience store banking ATM network mainly in the metropolitan area.
- It is certain that the New Bank's participation in the Internet Banking sector will raise the social recognition of "Internet banks" at a stroke. This is also favorable to "Japan Net Bank" and Sakura hopes that both banks will create a new market together.
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Copyright(C)2000 THE SAKURA BANK, LIMITED
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