Key Facts
• May 2025: SMFG launches ‘Trunk,’ a digital financial service for SMEs.
• Target: 3 million Japanese SMEs, aiming for 300,000 accounts in 3 years.
• Features: Next-day account setup, industry-low transfer fee of ¥145.
• Shift: Focus from loans to deposits and payments for higher capital efficiency.
• AI Integration: Automated funding support and financial management tools.
• 2026: AI-powered ‘New Business Card’ with up to ¥10 billion credit limit.
• Competitive Edge: Combines megabank reliability with fintech convenience.
• Market Context: SME card payment penetration in Japan is only 1%.
• Revenue Model: Capital-light approach leveraging deposits and payment fees.
• Security: Enhanced AI monitoring for fraud prevention and credit risk management.
Summary
Mitsui Sumitomo Financial Group (SMFG) has launched ‘Trunk,’ a digital financial service targeting Japan’s 3 million small and medium-sized enterprises (SMEs). The service shifts focus from traditional loans to deposits and payments, offering features like next-day account setup and low transfer fees. With a goal of acquiring 300,000 accounts in three years, Trunk integrates AI for funding support and financial management. The initiative aims to redefine SME banking by combining megabank reliability with fintech innovation. Despite challenges, such as encouraging businesses to switch from existing services, Trunk’s capital-light model and advanced security measures position it as a transformative force in Japan’s SME financial landscape.
