Mizuho Financial Group Inc. plans to almost double its wealth management clients by tapping newly minted millionaires who are low on cash and need finance beyond their startups.
Japan’s third-largest bank aims to to have 1,000 families on board with its wealth unit by this time next year, up from 600 at present, said Masayuki Sakai, general manager of the bank’s wealth management strategic project team. Much of that growth is expected to come from loans for startup company owners, whose equity holdings have grown sharply in value following initial public offerings, while cash income remains modest.
"There are many who don’t even own their homes,” Sakai said in an interview, adding that many need cash for business expansion and investment in other ventures. "We would like to respond to their funding needs in a timely manner.”