Sumitomo Mitsui Financial Group (SMFG) is set to launch a new standalone digital bank in the United States.
Jenius Bank will function as a division of Manufacturers Bank, a California state-chartered institution that is wholly owned by SMFG partner SMBC. Initially, Jenius Bank will offer personal loans, with plans to expand into savings and checking account products within its first year.
Kazuhisa Miyagawa, chairman and CEO of Manufacturers Bank, stated: “With the launch of Jenius Bank, we have the rare opportunity to build exceptional products from scratch that uniquely meet the needs of today’s digitally-native consumers who need and expect more.”
John Rosenfeld, founder and president of Citizens Access, an online direct bank of Citizens Bank, has been appointed to lead Jenius Bank. He emphasizes that Jenius Bank will not impose the “punitive fees that most banks charge today” and will minimize paper and manual processing. Operating as a fully online bank with no physical branches, the majority of employees will work remotely.
“Our target customers don’t want these things, and the resulting efficiency will allow us to provide more value back to them,” Rosenfeld explains. “Jenius Bank will be a leader in data and technology, using information to provide personalized insights for consumers seeking to make the most of their money, not just manage it.”