The operator of Japan's messaging platform expects its fintech business to break even in one to two years.
Line Corporation (Line), which has been investing heavily in financial services, expects its fintech business to break even in one to two years, says Co-CEO Shin Jung-Ho, who was quoted in «Bloomberg» (behind paywall). It is around the time that «Line Bank» should become operational.
«We expect maybe the next year to be the right time, but we have to prepare to acquire the license,» said Shin. A lot depends on how fast they can acquire users, Shin added in the interview.
Smartphone Bank In Japan
Last November, Line and Mizuho Financial Group agreed to establish a preparatory company through joint investment of their subsidiaries, Line Financial Corporation ("LINE Financial") and Mizuho Bank. The preparatory company will be engaged in the establishment of a new bank, Line said in a statement.
With about 80 million monthly active users (MAU) and familiar user interface, Line hopes to tap on Mizuho Bank's expertise in the banking business to jointly pursue the new «smartphone bank» connected to the Line app. Both companies aim to change banking into a business that is more personable and intimate.
Plans in Taiwan
To lay the ground for more user adoption of its Internet bank services, Line announced plans to set up a local office in Taiwan and team up with local lenders to set up an internet-only bank.
Line regional chief Liu I-cheng reportedly made the announcement at a news conference in Taipei, a day after the company agreed to sell a 30-percent stake to two Taiwanese lenders, Taipei Fubon Commercial Bank and Union Bank of Taiwan.
