#Japan #Tokyo #Money Forward #BaaS #Mitsui Sumitomo

Money Forward and Mitsui Sumitomo Financial Group Join Forces

In a significant move to innovate the banking and financial service landscape in Japan, Money Forward, Inc. has announced a partnership with Mitsui Sumitomo Financial Group and Mitsui Sumitomo Bank. This collaboration aims to explore the creation of a new Banking as a Service (BaaS) and digital banking infrastructure, following the signing of a basic agreement to establish a preparatory company dedicated to this endeavor.

The Vision Behind the Agreement

Established in 2013, Money Forward has grown to provide robust SaaS solutions such as Money Forward Cloud, alongside various Fintech services that support payment solutions and fundraising for businesses. Currently, over 400,000 individual entrepreneurs and corporate clients utilize these services, leveraging tools designed to improve cash cycles and enhance financial operations through solutions like Money Forward’s accounts receivable guarantees and early payment options through Fintech solutions.

The partnership comes in response to a critical gap in financial services for Japan’s small-to-medium-sized enterprises (SMEs), which represent a staggering 99% of the nation’s businesses. Mitsui Sumitomo Financial Group has recognized this challenge and has outlined a strategic goal in their mid-term management plan to create social value by supporting corporate digital transformation (DX) through advanced digital solutions.

Recognizing the opportunity to align their strengths, Money Forward, Mitsui Sumitomo Financial Group, and Mitsui Sumitomo Bank have committed to developing an open collaboration model that facilitates integrated BaaS digital banking solutions and improves the overall financial experience.

Future Collaborations and Service Development

The preparatory company established as part of this agreement will focus on developing innovative digital banking services while considering the regulatory approvals required by relevant authorities. Future developments will also explore the creation of an API ecosystem, allowing seamless integration for businesses and financial institutions interested in adopting BaaS solutions.

Details regarding the digital bank's structure, service offerings, and rollout schedule are currently under consideration and will be communicated once finalized.

Governance and Structure of the New Company

The new preparatory company will be jointly owned by Money Forward and Mitsui Sumitomo Financial Group, each holding a 50% stake. This arrangement is designed to strengthen operational collaboration and share expertise, paving the way for new financial products tailored to the current market needs.

Committed to User-Centric Solutions

This collaboration resonates with Money Forward’s mission: “Moving Money Forward, Moving Life Forward.” By fostering partnerships with various entities, the company aims to continue delivering value and innovative solutions to its users.

With this ambitious partnership, both Money Forward and Mitsui Sumitomo Financial Group are poised to redefine banking services in Japan, pushing the boundaries of traditional banking through digital transformation and comprehensive service integration.

About the Companies Involved

1. Money Forward, Inc.

• - Founded: May 2012
• - Location: 21F, MSB Tamachi, 3-1-21 Shibaura, Minato-ku, Tokyo
• - CEO: Yosuke Tsuji
• - Website: Money Forward

2. Mitsui Sumitomo Financial Group, Inc.

• - Founded: December 2002
• - Location: 1-1-2 Marunouchi, Chiyoda-ku, Tokyo
• - CEO: Michitomo Nakajima
• - Website: Mitsui Sumitomo Financial Group

3. Mitsui Sumitomo Bank, Inc.

• - Founded: June 1996
• - Location: 1-1-2 Marunouchi, Chiyoda-ku, Tokyo
• - CEO: Akihiro Fukutome
• - Website: Mitsui Sumitomo Bank

Through collective expertise and innovative solutions, this partnership seeks not only to elevate digital banking services but also to create a scalable financial ecosystem that meets the diverse needs of all businesses in Japan.