Softbank Finance and Deutsche Securities Launch Online Consumer Finance Service in Japan

Softbank Finance Corp. has partnered with Deutsche Securities Ltd. to launch a groundbreaking online consumer finance service in Japan. This innovative platform allows customers to complete the entire application process electronically, marking a significant departure from traditional consumer finance firms that require customers to physically visit offices or use automated machines. The Tokyo Metropolitan Government has given its approval for the Internet-based business model, and Softbank Finance has already secured a lending license to facilitate the service.

Key Takeaways:

• Softbank Finance Corp. has formed a tie-up with Deutsche Securities Ltd. to launch an online consumer finance service in Japan.
• The service is the first in the nation to allow customers to complete most of the entire application process electronically.
• The company will require contracts and other documents needed for identity confirmation to be mailed to prevent identity theft.
• Lending rates will be between 8% and 29.2% depending on credit history, and the lending limit has been set at 3 million yen per customer.
• Softbank Finance plans to have a loan balance of 50 billion yen (US$474.6 million) within three years by tapping demand among Internet users.
• The company will securitize the loans and sell them to investors through Deutsche Securities, enabling Softbank Finance to procure lending funds from the market.
• The online service will start accepting credit applications on Wednesday.

Statistics:

• The loan balance target within three years: 50 billion yen (US$474.6 million)
• Lending rates: 8% - 29.2%
• Lending limit: 3 million yen per customer
• Total funding procurements through Deutsche Securities: 50 billion yen (US$474.6 million)

Sources:

• The Nihon Keizai Shimbun
• Nikkei
• TSE (Tokyo Stock Exchange): Protective Disclosure:9984
• Softbank Finance Corp.
• Deutsche Securities Ltd.