Mizuho and Line call off plans to launch mobile bank in Japan
Messaging giant Line Corporation and Mizuho Financial Group have announced that they are ceasing plans to launch a new mobile bank in Japan, citing increasing competition and scrutiny towards the security of services.
In a statement, Line says the firms have “mutually reached the conclusion that additional time and investment would be required to provide a secure and convenient service that meets customers’ expectations and that at present, this would not be attainable in a timely manner”.
The joint venture, named Line Bank Preparatory Company, was first announced in November 2018. It was established in May 2019 through a joint investment by the companies’ subsidiaries Line Financial Corporation and Mizuho Bank.
Line Bank was aiming to bring a smartphone bank to the Japanese market sitting within the Line app, bringing together Mizuho’s “banking know-how” and Line’s 94 million monthly active users.
Both firms say the dissolution and liquidation proceedings of Line Bank Preparatory Company will now go ahead.
The pair add that they plan to continue their “harmonious” relationship and collaborate on other offerings, including the existing joint personal loan service provided by Line Credit Corporation.