Sony Bank

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Sony Bank, Inc.
Native name ソニーバンク, ソニー銀行
Type Subsidiary of Sony
Industry Banking
Founded June 11, 2001 (2001-06-11)
Headquarters Nishikichō, Tokyo, Japan
Products Foreign currency deposits, investment trust, home loans
Parent Sony Financial
Website sonybank.net

Sony Bank (Japanese: ソニーバンク, ソニー銀行) is a Japanese commercial bank established in April 2001. It operates as a direct bank and has no physical branches or ATMs. It is a subsidiary of Sony Financial Holdings and a member of the Japanese electronics company Sony Group. Its main business is offering online banking with foreign currency deposits, investment trusts, and home loans.

History[edit]

A reduction in regulations in Japan at the end of the 1990s encouraged a number of companies to enter the banking sector for the first time.[1]

Sony faced challenges as it began Sony Bank. In 2001, when Sony Bank was founded, Web use was limited in Japan as compared with the United States.[2] Only 24 million people used the Internet every month at that time.[2] Still, the company remained hopeful that infrastructure would improve.[2] Sony claimed its move into banking went hand-in-hand with its shift from a manufacturing focus to a focus on content such as films and music.[3]

Sony announced its new banking unit in March 2000.[4] The bank started doing business on June 11, 2001.[2] The company began with ¥37.5 billion[4] of capital. It had around 80 employees at the time.[3] It added 340 online accounts during its first hour of operation.[2] At the time, the company offered yen-deposit accounts, investment trusts, card loans, and bank payments.[2] It hoped to expand into foreign currency deposit accounts, credit cards, and housing loans by 2002.[2] It also hoped to allow its customers to use automated teller machines from the Japan Post.

In 2001, Sony Bank hoped to accumulate 400,000 customers by 2004.[2][3] In February 2001, the company had hoped to accumulate $5.2 billion in deposits;[3] it adjusted that figure downward to $4.1 billion in deposits three months later.[2] In February 2001, the company aimed to gain $8.6 billion in deposits by 2006.[3] Analysts at the time were generally upbeat about the prospects for the bank. Raymond H. Graber of TowerGroup suggested the bank could synergize with the other operations of Sony Financial.[2] Still, Paul Jamieson of Gomez Advisors warned that customers would have high expectations for Sony Bank, given Sony's existing reputation for the ease of use and elegant design of its products.[2]

Shigeru Ishii was appointed and served as the first president of Sony Bank.[5]

As of 2005 the company faced weak earnings.[6]

By 2007, Sony Bank had accumulated 500,000 customers.[7] That year, Sony planned to add an online brokerage.[7]

In 2011, Sony group considering extending this subsidiary into the Australian market.[8] However it abandoned those plans in 2013.[9]

Ownership[edit]

Upon the bank's founding in 2001, Sony owned 80% of the company.[2] By 2005, its stake had risen to 84.2%.[6] When JP Morgan Chase sold its stake, Sony increased its ownership to 87.4%.[6]

Sumitomo Mitsui owned a 16% initial stake in the company and allowed Sony Bank customers to access its 7,600 automated teller machines.[2] It had reduced its share to 12.6% by 2005.[6]

Upon the bank's founding in 2001, JP Morgan Chase owned a 4% stake in the company.[2] JP Morgan had hoped to expand its asset and wealth management services in Japan.[2] The company reduced its ownership to 3.2% by 2005.[6] It sold off its entire stake in 2005, claiming to have discussed the move with Sony in advance.[6]

References[edit]

  1. ^ "Sony Plans Online Bank." New York Times: W.1. New York Times. Feb 01 2001. Web. 27 May 2012.
  2. ^ a b c d e f g h i j k l m n o Bach, Deborah. "Sony Counting on its Brand as a Magnet for its Web Bank." American Banker: 12. ProQuest Research Library. Jun 12 2001. Web. 27 May 2012.
  3. ^ a b c d e Bach, Deborah. "Sony Seeks Japanese License for Web Bank; Morgan has Role." American Banker: 1. ProQuest Research Library. Feb 01 2001. Web. 27 May 2012.
  4. ^ a b Stephanie Strom (NYT)Dan Fineren (NYT)Elizabeth Olson (NYT). "World Business Briefing." New York Times (1923-Current file): C4. ProQuest Historical Newspapers: The New York Times (1851-2008). Mar 31 2000. Web. 27 May 2012.
  5. ^ "ENTERPRISE: COMPANIES: Online and in the Money." Asiaweek Aug 10 2001: 1-. ProQuest Research Library. Web. 27 May 2012.
  6. ^ a b c d e f "J.P. Morgan Chase & Co." Wall Street Journal: 1. ABI/INFORM Global. Sep 15 2005. Web. 27 May 2012.
  7. ^ a b Pilling, David. "Camera Sales Raise Sonys Game." Financial Times: 23. ABI/INFORM Global. Jul 27 2007. Web. 27 May 2012.
  8. ^ Sony eyes online Australian banking July 28, 2011, The Age. Retrieved July 28, 2011.
  9. ^ "Japanese giant Sony axes plan to set up online home loan business in Australia". Herald Sun. January 20, 2014. 

External links[edit]