Market Chatter: SMFG to Close U.S. Digital Bank Jenius, Pivot to Fee-Based Growth

MT Newswires Live01-14

Sumitomo Mitsui Financial Group (SMFG) (TYO:8316) is shutting its U.S. digital banking unit Jenius Bank after fierce interest rate competition hurt profitability, while keeping the U.S. a core market, Nikkei reported Wednesday.

Jenius stopped taking new accounts and loans last week, and deposits are expected to be transferred elsewhere. SMFG may sell the loan book. Launched in 2023, the bank failed to meet profit targets as rivals cut retail loan rates, according to the report.

The exit reflects SMFG's push to improve capital efficiency and lift overseas return on equity to the mid-teens. The group will shift resources to fee-based businesses such as investment banking and payments, including deeper ties with Jefferies Financial Group, the report said.

SMFG said U.S. lending remains a priority, with loans in the Americas up 6% year on year to $125 billion at end-September 2025, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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