Sony Bank

{{Short description|Japanese commercial bank}} {{Infobox company | name = Sony Bank, Inc. | type = [[Subsidiary]] | owner = | logo = Sony Bank logo.svg | logo_caption = | image = Hibiya_Park_Front.jpg | image_caption = Headquarters in [[Chiyoda, Tokyo]] | native_name = ソニーバンク, ソニー銀行 | native_name_lang = ja | caption_logo = | foundation = {{start date|2001|6|11}} | location = [[Nishikichō, Tokyo]], Japan | key_people = Keiji Minami <small>([[President (corporate title)|President]] and [[CEO]])</small><ref>{{Cite web |url=https://sonybank.net/en/corp/ceo_message/ |title=CEO message |accessdate=2024-01-10}}</ref> | industry = [[Bank]]ing | products = Foreign currency deposits, [[investment trust]], [[mortgage|home loans]] | parent = [[Sony Financial Group|Sony Financial Holdings]] | homepage = {{url|http://sonybank.net/}} | num_employees = 455 (2015) | assets = {{JPY|3,079.4 billion}} (2019) | revenue = | net_income = {{JPY|6.6 billion}} (2019) }} {{Nihongo|'''Sony Bank, Inc.'''|ソニー銀行株式会社}} is a Japanese [[commercial bank]] established in April 2001. It operates as a [[direct bank]] and has no physical branches or [[Automated teller machine|ATM]]s. It is one of the largest [[Neobank|online bank]]s in Japan and a subsidiary of [[Sony Financial Group|Sony Financial Holdings]], the financial business unit of the multinational conglomerate [[Sony|Sony Group Corporation]]. Its main business is offering [[online banking]] with foreign currency deposits, [[investment trust]]s, and home loans.

==History== 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.<ref name="NYT 2001">{{cite news|title=Sony Plans Online Bank|work=New York Times|page= W.1|date=Feb 1, 2001}}</ref>

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.<ref name="Bach">Bach, Deborah. "Sony Counting on its Brand as a Magnet for its Web Bank." ''American Banker'': 12. Jun 12 2001. {{ProQuest|}}</ref> Only 24 million people used the Internet every month at that time.<ref name="Bach" /> Still, the company remained hopeful that infrastructure would improve.<ref name="Bach" /> Sony claimed its move into banking went hand-in-hand with its shift from a manufacturing focus to a focus on content such as [[Sony Pictures Entertainment|films]] and [[Sony Music Entertainment|music]].<ref name="2001 Feb 1">Bach, Deborah. "Sony Seeks Japanese License for Web Bank; Morgan has Role." ''American Banker'': 1. {{ProQuest|}} Feb 01 2001.</ref>

Sony announced its new banking unit in March 2000.<ref name="Strom" /> The bank started doing business on June 11, 2001.<ref name="Bach" /> The company began with [[Japanese yen|¥]]37.5 billion<ref name="Strom">{{cite news|author=Stephanie Strom (NYT), Dan Fineren (NYT), Elizabeth Olson (NYT)|title=World Business Briefing|work=New York Times|page=C4|id={{ProQuest|}}|date=Mar 31, 2000}}</ref> of capital. It had around 80 employees at the time.<ref name="2001 Feb 1" /> It added 340 online accounts during its first hour of operation.<ref name="Bach" /> At the time, the company offered yen-deposit accounts, [[investment trust]]s, card loans, and [[Electronic funds transfer|bank payment]]s.<ref name="Bach" /> It hoped to expand into foreign currency deposit accounts, [[credit card]]s, and housing loans by 2002.<ref name="Bach" /> 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.<ref name="Bach" /><ref name="2001 Feb 1" /> In February 2001, the company had hoped to accumulate $5.2 billion in deposits;<ref name="2001 Feb 1" /> it adjusted that figure downward to $4.1 billion in deposits three months later.<ref name="Bach" /> In February 2001, the company aimed to gain $8.6 billion in deposits by 2006.<ref name="2001 Feb 1" /> 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]].<ref name="Bach" /> 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.<ref name="Bach" />

Shigeru Ishii was appointed and served as the first president of Sony Bank.<ref name="Asiaweek">"Enterprise: Companies : Online and in the Money." ''Asiaweek'' Aug 10 2001: 1-. {{ProQuest|}}</ref>

{{as of|2005}} the company faced weak earnings.<ref name="WSJ 20052">"J.P. Morgan Chase & Co." Wall Street Journal: 1. ABI/INFORM Global. Sep 15 2005. Web. 27 May 2012.</ref>

By 2007, Sony Bank had accumulated 500,000 customers.<ref name="Pilling">Pilling, David. "Camera Sales Raise Sonys Game." Financial Times: 23. ABI/INFORM Global. Jul 27 2007. Web. 27 May 2012.</ref> That year, Sony planned to add an [[electronic trading platform]].<ref name="Pilling" />

In 2011, Sony had considered expanding its banking business into the Australian market,<ref>[http://www.theage.com.au/business/sony-eyes-online-australian-banking-20110728-1i1iu.html Sony eyes online Australian banking] July 28, 2011, ''The Age''. Retrieved July 28, 2011.</ref> only to abandon the idea in 2013.<ref>{{cite news |url=http://www.heraldsun.com.au/business/japanese-giant-sony-axes-plan-to-set-up-online-home-loan-business-in-australia/story-fni0dcne-1226805789978 |title=Japanese giant Sony axes plan to set up online home loan business in Australia |work=Herald Sun |date=January 20, 2014}}</ref>

In 2019, Sony Bank started an English-language online banking service to meet the need of increasing foreign residents in Japan.<ref>{{Cite web|title=Sony Bank Launches New Service "English online banking"|url=https://www.prnewswire.com/news-releases/sony-bank-launches-new-service-english-online-banking-301031447.html|last=Incorporated|first=Sony Bank|website=www.prnewswire.com|language=en|access-date=2020-05-25}}</ref>

In October 2025, Sony Bank applied for a banking license in the U.S. with the goal of issuing dollar-pegged stablecoins.<ref>{{cite news |title=Sony Bank applies for US license, eyeing dollar-backed stablecoin |url=https://asia.nikkei.com/spotlight/cryptocurrencies/sony-bank-applies-for-us-license-eyeing-dollar-backed-stablecoin |access-date=16 October 2025 |work=Nikkei Asia |date=16 October 2025 |language=en}}</ref>

==Ownership== Upon the bank's founding in 2001, Sony owned 80% of the bank.<ref name="Bach" /> By 2005, its stake had risen to 84.2% and [[Sony Financial Holdings]] became the intermediate [[holding company]] of the bank.<ref name="WSJ 20052"/>

[[Sumitomo Mitsui Financial Group]] owned a 16% initial stake in the company and allowed Sony Bank customers to access its 7,600 [[automated teller machine]]s.<ref name="Bach" /> Sony Group is considered to be a [[Mitsui]] [[keiretsu]]. Sumitomo Mitsui had reduced its share to 12.6% by 2005.<ref name="WSJ 20052"/>

Upon the bank's founding in 2001, [[JPMorgan Chase]] owned a 4% stake in the bank.<ref name="Bach" /> JPMorgan had hoped to expand its [[asset management|asset]] and [[wealth management]] services in Japan.<ref name="Bach" /> The company reduced its ownership to 3.2% by 2005.<ref name="WSJ 20052"/> It sold off its entire stake in 2005, claiming to have discussed the move with Sony in advance.<ref name="WSJ 20052"/> By the divestiture made by JP Morgan, Sony increased its ownership to 87.4%.<ref name="WSJ 20052"/>

In 2008, Sony Bank became a wholly owned subsidiary of [[Sony Financial Holdings]] after Sumitomo Mitsui sold its remaining stake to Sony.<ref>{{Cite web|title=Sony Bank to become wholly owned subsidiary|url=https://www.sonyfh.co.jp/en/news/article/080229_01.pdf|website=Sony Financial Holdings}}</ref>

==References== {{Reflist|30em}}

==External links== * [http://sonybank.net/ Sony Bank] in Japanese

[[Category:Sony subsidiaries|Bank]] [[Category:Banks established in 2001]] [[Category:Banks of Japan]] [[Category:Financial services companies based in Tokyo]]