Japan's online financial firm SBI Holdings buys 20% stake at Fukushima Bank

It plans to create a joint outlet that will offer mutual funds, insurance products, and loans.

Japanese online financial firm SBI holdings in acquiring a 20% stake at Fukushima Bank in northeastern Japan, according to public broadcasting firm NHK.

SBI Holdings earlier announced a similar capital tie-up with Shimane Bank in western Japan.

The financial firm shared plans to create a joint outlet with the Fukushima Bank to offer mutual funds, insurance products and loans to customers. It will also reportedly provide Fukushima Bank support about financial technology (fintech) to help develop new IT-based services and cut costs.

The news comes amidst a tough time amongst Japan’s regional banks, whose profits have been squeezed by the country’s low interest rates.