THE JAPAN NEWS



 

Sumitomo Mitsui Financial Group Inc. and Dentsu Group Inc. plan to contribute capital to set up a new advertisement service company.

The new firm will display advertisements of Sumitomo Mitsui Banking Corp. and Dentsu’s client companies in smartphone apps provided by the bank.

The financial group aims to raise the quality of ad designs and other factors through collaboration with Dentsu, which has extensive experience in digital advertising.

Sumitomo Mitsui Financial will hold a majority stake in the new company and make it a subsidiary.

Sumitomo Mitsui Financial envisions the new firm becoming a pillar of the group, but one that is distinct from its existing financial business, as low interest rates have increasingly crimped the group’s profitability.

As the new company will be an “advanced banking service company,” its establishment requires authorization by the Financial Services Agency. Sumitomo Financial and Dentsu are preparing to apply for the authorization.

If approval is given, the new firm will begin operations by the end of fiscal 2021 at the earliest.

By taking advantage of such data as bank account holders’ sex and age, ads can be targeted more efficiently to prospective customers.

The financial group plans to revise internal rules about the handling of personal information and notify users of the new rules.

A panel including lawyers from outside the company will regularly check whether the new firm’s managment of such information is appropriate.

Sumitomo Mitsui Financial has been working to establish subsidiaries in a bid to strengthen its nonfinancial business operations. With the creation of the new ad company, the group will have 10 such firms.

The group has companies in the biometric identification and electronic contracts industries, the latter of which has achieved profitability on a single-month basis.