Application Rush Leads to Restrictions with JR East’s Bank Handling Salary Deposits and Home Loans as a Main Bank

Invisible Neobanks in the Point Economy Competition.

However, generally speaking, while there are certain merits, they often fail to resonate with users. One reason behind this is the significant shift in the environment where financial services, including banks, are placed.

Recently, amid competition focused on capturing customers through point-based services, financial services are transitioning into a position of significant content for expanding influence. Even if a single company launches attractive benefits, they may pale in comparison to the overall advantages enjoyed by more powerful economic spheres. Without standout perks like those of JRE BANK, users may lose interest.

The strengths of neobanks are weakening due to existing banks’ digital enhancements.

There’s another factor at play. Currently, there are four banks providing banking platforms to general companies: SBI Sumishin Net Bank, Rakuten Bank, Minna no Bank, and GMO Aozora Net Bank. Among them, Minna no Bank appeals as Japan’s first digital bank, highlighting convenience and boasting branches such as Tempstaff, Pixiv, and E-Design Insurance.

Certainly, users associated with each company find it easier to perform transactions such as deposits and transfers, but existing online banks and major banks’ online banking systems are increasingly superior in functionality. This makes it less enticing to open an account deliberately. This factor contributes to the neobanks becoming overshadowed.

Minna no Bank is facing a critical moment after suggestions of potential withdrawal by its parent company, Fukuoka Financial Group (although management has clearly denied withdrawal plans). The slowdown in growth of its card loan business, once considered a main revenue stream, has been noted. The business model, which aimed to provide paid banking services for younger generations, seems unrealistic from the outset, especially with numerous free, highly convenient internet banking apps available.

The commoditization of banking services continues unabated.

Neobanks themselves are likely to continue increasing in number. Consequently, the commoditization (i.e., generalization) of banking services will also progress. Already, opening a bank account can be completed entirely through a smartphone, akin to obtaining a loyalty card, and closing it just as easily. From the user’s perspective, taking advantage of advantageous services and campaigns would be a proactive approach.