SMBC Consumer Finance Co. plans to set up a subsidiary in Tianjin to expand its business dealing in unsecured loans in China, sources said.
The Tianjin unit, to be wholly owned by Promise (Hong Kong) Co., the lender’s subsidiary, will offer unsecured loans to individuals after receiving regulatory approval from China, the sources said.
This will be SMBC Consumer Finance’s third foothold in China, which the company views as a promising market that could become a primary source of revenue, the sources said.
The consumer finance unit of Sumitomo Mitsui Financial Group Inc. formed a joint venture in Shenzhen in 2010 while setting up a wholly owned unit in Shenyang in 2011. Combined outstanding loans by the two units came to about ¥2.7 billion as of the end of September.
The new subsidiary is expected to allow cooperation between SMBC Consumer Finance and Sumitomo Mitsui Banking Corp., another Sumitomo Mitsui Financial unit that runs a branch in Tianjin.