RETAIL BANKING | Staff Reporter, Japan

Mizuho Bank, LINE invest $114m in proposed smartphone bank

They are also introducing a co-CEO.

Tokyo-based LINE Financial and Mizuho Bank will make an additional investment or approximately $114m (JPY12b) investment to the company managing its proposed smartphone bank.

In a joint press release, the two financial firms said the additional JPY12b investment in LINE Bank Preparatory Company has increased its capital reserve to JPY16.5b.

Additionally, they are introducing a co-CEO management structure in the preparatory company, with Mizuho Bank set to appoint a co-CEO. The co-CEO will be announced in another date.

The remainder of the board will be comprised of four directors and auditors appointed by LINE Financial and four by Mizuho Bank to further strengthen the governance structure of LINE Bank Preparatory Company.

LINE Bank Preparatory Company plans to develop a “smartphone bank” connected to the LINE app, building on LINE’s foundation of its 86 million users in Japan and Mizuho Bank’s extensive know-how in banking.

LINE Financial and Mizuho Bank will continue to develop a “smartphone bank” with the user in mind and create a new financial experience in order to provide a high-quality service that is safe and secure.

Following the launch of LINE BK in Thailand last year, LINE outlined further plans to expand banking services into other countries, including Taiwan and Indonesia, in 2021.

(US$1 = JPY105.28)

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