Major Trust Banks in Japan Enhance Asset Management Consulting Services

Strategic Insights -

As Japan's population continues to gray, trust banks in the country are focusing on small- and midsize-business owners approaching retirement. In an effort to address their asset management needs, major trust banks are expanding their consulting services. Two notable examples include Mitsubishi UFJ Trust and Banking Corp. and Chuo Mitsui Trust and Banking Co., which have formed alliances with the TKC National Federation and ING Life Insurance Co., respectively.

Key Takeaways:

  • Mitsubishi UFJ Trust and Banking Corp. has partnered with the TKC National Federation to launch an asset inheritance business, utilizing TKC's network of 9,000 tax and public accountants.
  • Chuo Mitsui Trust and Banking Co. has concluded an alliance with ING Life Insurance Co. to sell products bundling testamentary trusts and life insurance to company owners considering business successions.
  • Resona Bank offers services for valuating stock and calculating assets held by business managers, aiming to unearth latent needs among unaware business owners.
  • Mizuho Trust & Banking Co. employs about 30 consultants to provide advice on corporate finances and asset management to 9,000 small- and midsize-business owners nationwide.
  • The partnerships aim to address the growing challenge of succession planning and asset management among small- and midsize-business owners.

Statistics:

  • 720,000 business owners across Japan rely on TKC for inquiries regarding business and asset issues.
  • Chuo Mitsui Trust and Banking Co. plans to tap into the market by using a nationwide chain of tax accounting offices as agents.
  • The Japanese population is aging rapidly, with implications for business succession and asset management.
  • The partnerships involve a combined network of 9,000 tax and public accountants and 30 consultants.

Sources:

  • Asia Pulse
  • Nikkei
  • Mitsubishi UFJ Trust and Banking Corp.
  • TKC National Federation
  • Chuo Mitsui Trust and Banking Co.
  • ING Life Insurance Co.
  • Resona Bank
  • Mizuho Trust & Banking Co. (TSE:8404)