Sumitomo Mitsui Financial Group Inc. is close to reaching an agreement with moneylender Promise Co. to form a capital and business alliance, sources close to the deal said Wednesday.
The holding company of Sumitomo Mitsui Banking Corp. is expected to take an equity stake of around 15 percent in Promise as part of its plan to boost the group's retail services, the sources said.
Among major Japanese banking groups, Mitsubishi Tokyo Financial Group Inc. has already worked out an alliance with Acom Co., another major consumer finance company, with Mitsubishi Tokyo investing about 100 billion yen in Acom. The two companies are also tying up in the debt-guarantee business.
The Sumitomo Mitsui group has recently made its business strategy to increase lending to small and midsize companies in the form of unsecured loans, while having achieved considerable progress in the disposal of bad loans, the sources said.
The group has expanded its housing loan operations. Yet in the lucrative field of consumer financing, the group needs a drastic boost.