JAKARTA (TheInsiderStories) – Japanese firms, LINE Financial Corporation and Mizuho Bank Ltd., a unit of Mizuho Financial Group, Inc., make an additional investment at LINE Bank Preparatory Company, they announced today. Both companies injected fresh capital JPY12 billion (US$114.03 million) in the digital bank, increasing its capital reserve to JPY16.5 billion.
The shareholders are taking these necessary steps as they proceed with preparations to establish a user-friendly “smartphone bank” connected to the LINE app. Established in May 2019, LINE Bank its expecting to run the new bank in 2022. Now, the company managed 86 million users in Japan.
Following the successful launch of LINE Bank in Thailand last year, LINE has further plans in 2021 to expand banking services into other countries, including Taiwan and Indonesia. As reported, in 2018, its unit, LINE Financial Asia (NYSE:LN/TSE:3938), has acquired 20 percent of PT Bank KEB Hana Indonesia, a foreign private lender, through a share subscription agreement.
The move designed to expand LINE Bank’ digital banking services in Indonesia. Both companies aimed to build digital finance market in Indonesia and the rest of Asia. For LINE Financial, the deal improved the company’ positioning in Indonesia and globally as it looks to grow as a financial technology (FinTech) and digital banking provider.
Both companies are also looking to create deposit, microcredit products, also remittance and payment services for Indonesia. CEO of LINE Financial Asia, In Joon Hwang stated, this agreement is an important step become a leader in mobile banking and expanding their FinTech services.
LINE Financial was established in August 2018 and is based in Hong Kong. The group has launched LINE messaging app in June 2011 and since then has grown into a diverse, global ecosystem that includes Artificial intelligence technology, FinTech and more.
LINE Financial and Mizuho Bank agreed to establish a bank preparatory company in Japan through a joint venture in November 2018, and established the digital bank in May 2019. While, Bank KEB Hana was established under the name PT Bank Pasar Pagi Madju in April 27, 1971.
As the bank changed its status and became the commercial bank, the lender’ name was changed into PT Bank Bintang Manunggal on Nov. 30, 1989. Then, in 2007, Hana Financial Group acquired PT Bank Bima and changed into Bank Hana and then in 2013 merged with PT Bank KEB Indonesia. One year later, the company was changed and officially became PT Bank KEB Hana Indonesia, which has been approved by Financial Services Authority on June 27, 2014.
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