Japan Post bank will expand into the home mortgage market, partnering with regional banks, it announced on Wednesday.
Japan Post bank - which will be launched on October 1 as the government starts the process of privatization of postal services - and Suruga bank, a regional lender based in Shizuoka Prefecture, agreed to proceed with negotiations to partner on developing financial service and products.
Under the partnership, Japan Post will sell the home mortgage products of Suruga bank, using its post office network across the nation.
The products are for those whom private financial bank hadnâ€™t targeted, such as single women and self-employed workers.
Many regional banks, excluding Suruga, last week rejected the proposal from Japan Post to make partnership in home mortgage business, insisting the move will oppress private banks.
Japan Post aims to accumulate expertise in the mortgage products through partnership to develop and sell own products within a couple of years.