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From shopping to banking
Internet shopping giants Yahoo Japan Corp. and Rakuten Inc. are taking advantage of their online user base to branch into the banking industry. 

In April 2006, Yahoo Japan announced it will acquire a 14.9 percent stake in Japan Net Bank, the online subsidiary of Sumitomo Mitsui Financial Group (SMFG), and that it may raise its stake in Japan Net Bank to as high as 50 percent in the future.

Rakuten Inc. has formed alliances with a number of Japanese companies to offer a full range of financial services, covering securities brokerage, personal loans, banking and insurance:

• November 2004: Rakuten Securities Inc., the company's securities arm, agreed to start online brokerage business with Shinsei Bank Ltd. to enable consumers to make online transactions, including making deposits in regular savings and foreign currency accounts, buying mutual funds, trading stocks, and viewing account balances.  The agreement followed a lift in December of a prohibition that prevented banks from marketing securities on behalf of brokerage firms. 

• February 2006:  Rakuten Securities Inc. teamed up with eBank and six brokerages to offer online fund transfer services.

• February 2006:  Rakuten, Inc. joined with Shinsei Bank Ltd. to establish a company specializing in mortgage loans provided over the Internet.

• March 2006:  Rakuten, Inc. set up a joint venture with American Home Assurance Co., an affiliate of American International Group Inc., to sell non-life insurance products for retailers.

• July 2006:  Rakuten, Inc. plans to have Tokyo Tomin Bank set up an online branch on the Rakuten Internet mall to provide settlement services and extend loans to small and medium-size companies and retail customers.   The two companies are also considering establishing a full-scale Internet bank by 2007.