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Line Corporation and Mizuho Financial Group have agreed to suspend a digibank project in Japan, saying they need more time and investment to meet customers’ expectations.
The project was unveiled in 2018, when the firms announced plans to establish a new bank under a joint venture entity called Line Bank Preparatory Company. Line would hold a 51% stake while Mizuho Bank would get 49%, with the initial capital of 2 billion yen (US$15 million).
The digibank intended to capitalize on Line’s 78 million monthly active users in Japan and Mizuho’s financial expertise.
In a statement, the companies stated that “the dissolution and liquidation proceedings for Line Bank Preparatory Company will move forward after arrangements have been made with business partners and other stakeholders.”
In 2021, Line and Mizuho announced an additional investment of 12 billion yen (around US$90 million) for their joint venture, which increased its capital reserve to 16.5 billion yen (US$124 million) at that time.
The companies have previously collaborated on other projects, including offering personal loan services through Line Credit Corporation.
Currency converted from Japanese yen to US dollar: US$1 = 132 yen.
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Editing by Thu Huong Le and Eileen C. Ang
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