Jenius Bank Surpasses $1 Billion in Deposits

Rhea-AI Summary

Jenius Bank, a digital division of SMBC MANUBANK, reached $1 billion in deposits for its high-yield savings product, offering a 5.25% APY. Launched in summer 2023, the bank also amassed over $700 million in loans. This achievement highlights evolving consumer preferences in financial services. John Rosenfeld, President of Jenius Bank, emphasized the demand for innovative, convenient, and secure banking solutions. Jenius Bank aims to help customers achieve their financial goals and reduce stress. Hirofumi Otsuka, CEO of SMBC Americas Division, noted the bank’s role in SMBC's long-term growth strategy. Plans for product expansion are underway.

Positive

• Jenius Bank reached $1 billion in deposits in less than a year.
• The high-yield savings product offers a market-leading rate of 5.25% APY.
• Accumulated over $700 million in loans before its first anniversary.
• Indicates strong consumer preference for innovative banking solutions.
• Reflects SMBC's commitment to sustainable growth and business diversification.

Negative

• No specific financial performance metrics beyond deposits and loans were disclosed.
• Possible reliance on a high-yield rate could pose risks if market conditions change.

Insights

Financial Analyst

Jenius Bank achieving $1 billion in deposits since its launch in summer 2023 is a strong indicator of consumer trust and market acceptance. The high-yield savings account, offering a competitive 5.25% APY, demonstrates their ability to attract depositors in the current economic climate. This rate is notably higher than the national average for savings accounts, which hovers around 0.43%, providing a substantial incentive for savers.

Financially, this rapid accumulation of deposits provides Jenius Bank with a significant capital base that can be used to fund further lending activities or investments. The deposits growth coupled with $700 million in personal loans already issued suggests a balanced approach to managing both sides of the balance sheet.

For retail investors, this milestone indicates robust early adoption and a competitive edge that could support sustained growth. However, potential investors should also be mindful of the interest rate environment and how fluctuations could impact Jenius Bank’s ability to maintain such high APYs. Historically, high-yield accounts can experience rate cuts in response to changes in market conditions or liquidity needs.

Market Research Analyst

The success of Jenius Bank in reaching $1 billion in deposits highlights a significant shift in consumer behavior towards digital banking solutions. The promise of convenience, combined with a high-yield savings rate, aligns well with current consumer demands for better returns on their deposits without the need for physical bank visits.

Moreover, the rapid adoption of both their savings and loan products by consumers may reflect a broader trend where traditional banking institutions are seen as less competitive or innovative. This shift offers valuable insights into market dynamics, suggesting that traditional banks might need to innovate rapidly or risk losing market share to more agile, digital-native competitors.

For investors, understanding this consumer preference shift is key. Jenius Bank’s growth trajectory could signal broader industry changes where digital-first banking solutions become the norm. Long-term, this could either signify opportunity or risk, depending on how well other institutions adapt to these changing consumer expectations.

The new digital banking division of SMBC MANUBANK hits milestone by deeply understanding consumers’ needs and empowering them with a market-leading rate

LOS ANGELES--(BUSINESS WIRE)-- Jenius Bank™ the new digital division of SMBC MANUBANK, a wholly-owned subsidiary of SMBC Americas Holdings, Inc., hit a milestone last week, reaching $1 billion in deposits for its high-yield savings product. Currently offering a market-leading rate of 5.25% APY¹, the Jenius Savings product is designed to empower customers to take control of their financial future and achieve their financial goals with greater ease and flexibility.

Jenius Bank’s digital banking business launched in the summer of 2023 and has experienced growth across both its products currently in market. Reaching $1 billion in deposits and over $700 million in loans, all before Jenius Bank’s first anniversary, clearly illustrates that consumer preferences are evolving, and the financial services industry needs to evolve with them.

"The overwhelming response to our savings product reaffirms our belief that consumers are increasingly seeking innovative banking solutions that offer convenience, security and competitive returns,” said John Rosenfeld, President of Jenius Bank. “We remain dedicated to empowering our customers on their financial journeys by leveraging consumer research to deliver stress-free products designed for their evolving needs."

Americans that are not taking advantage of a High-Yield Savings Account (HYSA) like Jenius Savings, are missing out on billions of dollars they could be earning with a better rate. That lack of financial optimization could be causing consumers unnecessary stress. Jenius Bank is dedicated to helping advance consumers’ financial and life goals, reducing stress with every product offering.

“Jenius Bank’s portfolio is a cornerstone of our strategic vision for SMBC's long-term roadmap,” said Hirofumi Otsuka, CEO of SMBC Americas Division. “This new U.S. consumer business is a testament to SMBC’s commitment to driving sustainable growth, diversifying our business, and creating exceptional products that meet the needs of the modern-day consumer."

With a startup mindset and a rich banking history, Jenius Bank aims to continue providing consumers with the tools they need to live a richer life. Currently, Jenius Bank offers both a savings and personal loan product, with plans to expand its products and features in the future.

To learn more about Jenius Savings and Personal Loan options, please visit jeniusbank.com.

About Jenius Bank
Jenius Bank has a mission to help people live a richer life through actionable insights and innovative tools powered by first class technology. The bank currently offers personal loans and high-yield savings accounts, with a mobile app launching in the coming months. Jenius Bank is the digital division of SMBC MANUBANK, a California state-chartered commercial bank that is a wholly-owned subsidiary of SMBC Americas Holdings, Inc., a member of SMBC Group. To learn more information about Jenius Bank, visit www.jeniusbank.com.

About SMBC Group
SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 150 offices and 86,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and ADRs on the New York (NYSE: SMFG) stock exchanges.

In the Americas, SMBC Group has a presence in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Nikko Securities America, Inc., SMBC Nikko Securities Canada, Ltd., SMBC Capital Markets, Inc., SMBC Rail Services LLC, SMBC MANUBANK, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd. For more information, please visit www.smbcgroup.com.

About SMBC MANUBANK
Founded in 1962, SMBC MANUBANK is a California state-chartered commercial bank based in Los Angeles and is a wholly-owned subsidiary of SMBC Americas Holdings, Inc., a member of SMBC Group. SMBC MANUBANK serves the specialized needs of middle-market businesses, manufacturers, wholesalers, distributors, importers, exporters, and service companies. For more information, please visit www.smbcmanubank.com.

Jenius Bank is a division of SMBC MANUBANK. Member FDIC.

¹Variable Annual Percentage Yield (APY) as of 2/13/2024 and subject to change at anytime.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240528552317/en/

Press Contact:

Bianca Repasi

SourceCode Communications

jeniusbank@sourcecodecomms.com

Source: Jenius Bank

FAQ

What milestone did Jenius Bank achieve with its savings product?

Jenius Bank surpassed $1 billion in deposits for its high-yield savings product.

What is the current APY offered by Jenius Bank's savings product?

Jenius Bank offers a market-leading rate of 5.25% APY on its savings product.

When was Jenius Bank launched?

Jenius Bank was launched in the summer of 2023.

How much has Jenius Bank accumulated in loans?

Jenius Bank has accumulated over $700 million in loans.

What are Jenius Bank's future plans?

Jenius Bank plans to expand its product offerings and features.

Who is the President of Jenius Bank?

John Rosenfeld is the President of Jenius Bank.

What is SMBC's vision for Jenius Bank?

SMBC aims to drive sustainable growth, diversify its business, and offer exceptional products through Jenius Bank.