More Japanese Firms Using Internet Banks as Main Financial InstitutionEconomy
A Tokyo Shōkō Research survey found more companies are using one of nine leading internet banks as their main financial institution. The survey, which looked at a database of 1.55 million companies nationwide, found that 3,446 firms used either Au Jinbun Bank, GMO Aozora Net Bank, PayPay Bank, SBI Sumishin Net Bank, Sony Bank, Daiwa Next Bank, Minna Bank, Rakuten Bank, or UI Bank (based on the largest loan amount, if more than one bank was used). This was a fivefold increase from 665 companies in 2013.
The majority of companies, however, still rely on conventional banks. The top three megabanks dominate, with 125,837 firms using Mitsubishi UFJ Bank, 98,778 using Sumitomo Mitsui Bank, and 80,620 using Mizuho Bank. Among online banks, Rakuten Bank is the main financial institution for 1,394 companies followed by PayPay Bank with 1,268 companies, putting the institutions at a level comparable to second-tier regional banks, credit unions, and other regional lenders. The survey showed that SBI Sumishin Net Bank and GMO Aozora Net Bank are also growing steadily.
(Originally published in Japanese. Banner photo © Pixta.)