Tokyo, March 17 (Reuters) - Nomura Holdings, Japan's largest securities firm, announced on Monday a partnership with regional lender Hyakujushi Bank to enhance its wealth management services.
Based in Kagawa prefecture, Hyakujushi Bank will transfer some customer accounts, like stock and bond investment trust accounts, to Nomura. Nomura, in turn, will allocate staff to Hyakujushi and grant access to its financial platform, as per the statement from Nomura.
Japanese financial institutions have been expanding their asset and wealth management services to tap into the substantial savings of Japanese households, half of which is currently held as cash and deposits.
With the return of inflation in Japan reducing the value of cash holdings, savers are increasingly urged to invest in higher-return financial products.
Nomura's CEO Kentaro Okuda noted, "Interest in asset formation is continuing to rise," during a press briefing and highlighted the growing expectations on their role.
Kagawa households boast some of the highest average savings rates in Japan, according to Nomura's release.
Nomura and Hyakujushi plan to explore collaboration in advising customers on inheritance, business succession, and public listings.
This partnership marks Nomura's sixth alliance with a regional bank, leaving room for potential future collaborations, as indicated by Okuda.
The collaboration intensifies competition with online banking group SBI Holdings, which has also struck agreements with various regional banks.
The partnership is expected to commence before March 2027, with the impact on each company's earnings currently uncertain, according to Nomura.