Jiji Press TOKYO (Jiji Press) — Companies in the telecommunications, retail and other sectors are entering the securities industry in Japan, aiming to provide young people with financial services conveniently with the use of credit cards or smartphones.
Earlier this year, mobile phone carrier KDDI Corp., free messaging app provider Line Corp. and department store operator Marui Group Co. announced their respective plans to make inroads into the securities sector.
All three companies have customer bases comprising mainly young people.
The moves come as these companies are enthusiastic about expanding their business fields and existing securities firm are hoping to rejuvenate their customer bases.
In January, KDDI set up KDDI Asset Management Co. with major brokerage firm Daiwa Securities Group Inc. The joint company plans to launch asset management services and products, such as defined-contribution pension plans, this summer.
Line is set to form a brokerage firm with Nomura Holdings Inc., another securities industry giant, later this month.
About half of Line’s customers are believed to be aged 40 or below. The planned new firm will offer securities brokerage and investment consulting services to those who aim to build assets, a Line official said.
The number of holders of Marui’s Epos credit card stood at 6.57 million at the end of March, with about half of them in their 20s or 30s.
The company plans to establish a securities firm, which will launch this summer, allowing customers to buy on credit investment trust products under the “tsumitate” accumulation type of the country’s Nippon Individual Savings Account small-lot tax-free investment scheme.