March 18, 2016

Progress of Discussions on Joint Venture Internet Bank

  • GMO Internet, Inc.
  • GMO CLICK Holdings, Inc.
  • Aozora Bank, Ltd.
  • Aozora Trust Bank, Ltd.

 Tokyo, Japan – March 18, 2016 – GMO Internet, Inc., GMO CLICK Holdings, Aozora Bank, and Aozora Trust Bank entered into discussion last June regarding the joint establishment of an Internet bank.
As announced on June 29, 2015 in Aozora’s press release entitled “Aozora Commences Discussions on Joint Venture Internet Bank with GMO Internet, Inc.” and GMO Internet’s release entitled “GMO Internet and Aozora Bank Consider Internet Banking Partnership”, the parties are considering an Internet banking business jointly operated under Aozora’s wholly-owned subsidiary, Aozora Trust. Discussions are ongoing as outlined below. 
 
1. Background and Objective
(1) Recent technological advancements in the IT industry have given rise to significant changes in customer behavior and society as a whole. Within the finance industry, “FinTech” has been attracting considerable attention. FinTech services leverage information technology to provide enhanced convenience in finance-related businesses, and the trend towards offering financial services that extend beyond the existing framework has gained momentum.
(2) GMO Internet, GMO CLICK Holdings, Aozora and Aozora Trust are seeking to jointly operate a next generation Internet bank. Through this planned partnership, we aim to offer new financial services by taking advantage of the innovations derived from integrating finance and technology.
 
2. Role of Each Company, Products and Services, Joint Operation Scheme
(1)  This joint venture aims to provide innovative financial services by leveraging GMO Internet Group’s business platform and extensive experience and expertise in Internet technology, in addition to Aozora’s longstanding experience and expertise in the banking business.
(2) Aozora and GMO are discussing the provision of attractive services that directly lead to increased productivity as well as the introduction of new types of lending products, mainly targeting small businesses that utilize the Internet as a business platform. In addition, the Bank aims to provide services which combine banking and securities in collaboration with GMO CLICK Securities, Inc., a wholly-owned subsidiary of GMO CLICK Holdings.
(3)  GMO and GMO CLICK Holdings are considering a stake in Aozora Trust, and upon becoming shareholders plan to join existing shareholder Aozora Bank in running the Internet banking business.

Aozora Trust will continue to provide existing services.

3. Schedule
The parties aim to commence Internet banking operations during Fiscal Year 2017, subject to the completion of necessary procedures including obtaining approval from relevant authorities.

4. Please refer to the attachment for an overview of each company. 
Press Inquiries
●GMO Internet, Inc. 
 Group Public/Investor Relations
 TEL: +81-3-5456-2695 
 Email: [email protected] 

●GMO CLICK Holdings, Inc. 
 Corporate Planning Department
 TEL: +81-3-6221-0183 
 Email: [email protected] 

●Aozora Bank, Ltd.
 Business Strategy Division 
 TEL: +81-3-5212-9252 

●Aozora Trust Bank, Ltd.
 Customer Service Office 
 TEL: +81-3-3221-8011 


Overview of GMO Internet
Name GMO Internet, Inc.
Location 26-1 Sakuragaoka-cho, Shibuya-ku, Tokyo
Representative Masatoshi Kumagai, Founder and Group CEO
Operations Internet infrastructure, online advertising and media, Internet securities, mobile Internet
Capital 5 billion yen (As of December 31, 2015)
Established May 24, 1991
Consolidated Total assets 554 billion yen (As of December 31, 2015)

Overview of GMO CLICK Holdings
Name GMO CLICK Holdings, Inc.
Location 20-1 Sakuragaoka-cho, Shibuya-ku, Tokyo
Representative Hiroyasu Kito, President
Operations Financial holding company
Capital 286 million yen (As of December 31, 2015)
Established January 4, 2012
Consolidated Total assets 450.9 billion yen (As of December 31, 2015)

Overview of Aozora Bank
Name Aozora Bank, Ltd.
Location 3-1 Kudan-Minami 1-chome, Chiyoda-ku, Tokyo
Representative Shinsuke Baba, President and CEO
Operations Banking services
Capital 100 billion yen (As of December 31, 2015)
Established April 1, 1957
Consolidated Total assets 4,715 billion yen (As of December 31, 2015)

Overview of Aozora Trust Bank
Name Aozora Trust Bank, Ltd.
Location 3-1 Kudan-Minami 1-chome, Chiyoda-ku, Tokyo
Representative Masaki Yamagata, Director and President
Operations Banking, trust services
Capital 6.5 billion yen (As of September 30, 2015)
Established February 28, 1994
Consolidated Total assets 6.5 billion yen (As of September 30, 2015)




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