To strengthen its U.S. presence, the Japanese banking giant Sumitomo Mitsui Banking Corp. plans to launch a digital consumer banking unit called Jenius Bank that will operate as a division of SMBC's Los Angeles-based subsidiary, the $4.9 billion-asset Manufacturers Bank.
SMBC expects to roll out Jenius in the coming months with a personal loan product, then follow with savings and checking within the unit's first year of operation.
The move is a departure for Manufacturers Bank. Founded 1962 and acquired by Tokyo-based Mitsui Bank in 1981, Manufacturers has built a reputation as a commercial-focused lender.
Manufacturers came under its present ownership structure in 2001 when Mitsui Bank merged with Sumitomo Bank to create SMBC.
"With the launch of Jenius Bank, we have the rare opportunity to build exceptional products from scratch that uniquely meet the needs of today's digitally native consumers who need and expect more," Manufacturers Bank Chairman and CEO Kazuhisa Miyagawa said in a press release Wednesday.
According to Federal Deposit Insurance Corp. statistics, commercial-and-industrial loans accounted for 45% of Manufacturers' $2.4 billion loan portfolio on June 30. The company also does substantial business in multifamily and commercial real estate lending.
Mortgages, home equity lines of credit and consumer loans amounted to $19 million.
The $2 trillion-asset company has appointed a new CEO and chief operating officer of its growing business in the U.S., Mexico and other parts of the Western Hemisphere.
"Jenius Bank will be a leader in data and technology, using information to provide personalized insights for consumers seeking to make the most of their money, not just manage it," John Rosenfeld, president of Jenius Bank, said in the press release.
Jenius plans to have a nationwide footprint. It will limit expenses as it unfolds its business plan with a digital-first strategy. This will minimize paper and manual processing, as well as eliminate the need for physical branches.
"Our target customers don't want these things, and the resulting efficiency will allow us to provide more value back to them," Rosenfeld said.
Jenius will still maintain a 24/7 call center, according to Rosenfeld.
"The new digital consumer banking business is another tangible example of SMBC Group's focus and commitment to further enhancing its customer service," Jun Ohta, president and group chief executive of SMBC, said in the press release.
Rosenfeld, who joined Jenius Bank in February 2021, is well versed in digital banking. Before joining Jenius he was president of Citizens Financial Group's Citizens Access digital banking unit, and oversaw its July 2018 launch.
