#Japan #Tokyo #Olive #SMBC Group #SBI Group

A New Chapter in Asset Management: SBI and SMBC's Partnership for Olive

In an exciting development within the financial services landscape, SBI Holdings and SMBC Group have announced a collaboration aimed at enhancing Olive, the comprehensive financial service platform. This strategic partnership focuses on developing a new asset management service for individuals. The agreement was formalized under the title "Business Partnership Agreement on Asset Management Services for Individuals".

This collaboration, set to yield its first results by 2025, will see the establishment of a preparatory company. This company is designed to promote the planning and delivery of the new shared service and will reflect a diverse funding structure: 10% from SMBC Financial Group, 30% from SMBC Nikko Securities, 20% from Sumitomo Mitsui Banking Corporation, 10% from SBI Holdings, and 30% from SBI Securities.

Background of the Collaboration

The partnership between SBI Group and SMBC Group dates back to April 2020, when they reached a fundamental agreement on a strategic capital and business collaboration. Over time, this alliance has aimed to deliver high-value and convenient services to individual customers. For instance, in 2021, they launched the mutual investment subscription service allowing customers to purchase investment trusts using credit cards from Sumitomo Mitsui Card. This service has recently surpassed monthly subscription amounts of 85 billion JPY, hitting an annual benchmark of 1 trillion JPY.

Additionally, the Olive service has rapidly gained traction since its introduction in March 2023, with over 5.7 million clients benefiting from its broad range of financial offerings, including account management, payment services, and the convenience of SBI Securities’ online brokerage.

As digital transactions become more commonplace, customers who previously relied predominantly on face-to-face interactions are increasingly blending online capabilities into their investment strategies. This trend reveals a growing preference for digital engagement, even as many wish for access to expert consultations when faced with financial dilemmas. The rising demand for personalized advisory services amid a digitally driven marketplace compelled both groups to strengthen their partnership and innovate Olive’s asset management services.

Overview of the New Joint Service

The Olive platform serves as a comprehensive financial service by integrating an array of functions such as accounts, card payments, finance, online trading, and insurance seamlessly. The new joint initiative aims to introduce a premium tier, "Olive Infinite," offering elevated payment and asset management options to targeted customers, while also upgrading services for all Olive users.

"Olive Infinite" sets itself apart by being the first in Japan to adopt the highest tier of Visa, "Visa Infinite," thereby ensuring an unparalleled cashless experience. Customers using Olive Infinite will have access to exceptional economic benefits, including unique redemption rewards and robust cashback programs through SBI Securities, all enhanced with a layer of personalized consulting services provided by skilled advisors from SMBC Nikko Securities and Sumitomo Mitsui Banking Corporation.

Olive Infinite Features

1. Japan’s First Visa Infinite Card
- Exceptional economic value with rewards worth up to 110,000 JPY.
- Bonus points for transactions made using SBI Securities' card subscriptions.

2. Exclusive and Diverse Experiences
- Premium services including metal cards, concierge access, priority passes, and exclusive invitations to art events and sports tournaments.

3. Flexible Consulting Services
- Customers can choose from various consultation channels, including AI chats available 24/7, personal consultations through chat, phone, or video, and in-person meetings at Olive lounges.
- A personalized team of advisors is available to address financial concerns comprehensively.

In addition, even customers not on "Olive Infinite" will benefit from improved asset management services, such as aggregating assets across different banks and companies seamlessly, alongside consulting services powered by AI and human agents. This integration allows for transactional capabilities through the Olive app, further optimized by SBI’s features for better accessibility.

Timeline

• - July 2025: Establishment of the preparatory company, contingent upon the approval from regulatory authorities.
• - Spring 2026: Launch of Olive Infinite.

The partnership between SBI and SMBC represents a forward-thinking approach to asset management that aligns with the ever-evolving demands of today’s financial landscape. This strategic alliance promises to deliver enhanced value, accommodating individual preferences while leveraging the strengths of both companies. As the landscape of digital finance continues to unfold, Olive’s upgraded services set a promising precedent for innovation in the industry.