Competitive Landscape in Japan’s
Home Loan Industry
: Unraveling the Impact of
Internet-Only Banks
The Japanese home loan market is witnessing fierce competition, with internet-only banks
such as au Jibun Bank and SBI Sumishin Net Bank leading the charge.
These banks leverage their lower operating costs to offer attractive interest rates
on variable-rate home loans.
Recently, au Jibun Bank expanded its preferential rates, reaching as low as 0.196%
for some customers. Meanwhile, SBI Sumishin Net Bank,
which has a market share of around 5%, reduced its refinancing rate to 0.299%.
Traditional banks are also competing by lowering their expenses through digitization
and offering competitive interest rates.