What AI features do these SME services offer?

Mizuho's service uses AI to enable business cards with credit limits up to ¥1 billion and AI support for accounting tasks. SMFG's Trunk also uses AI to digitalize operations.

Why are megabanks targeting SME lending now?

The return to a world with interest rates has made deposits valuable again, and megabanks see SME deposits as sticky. Population decline also limits growth in retail banking.

How are regional banks reacting?

Yokohama Bank's president called the megabank move a major threat, and the bank is starting its own digital service for corporate clients.

Top Companies' AI MovesAI Business & IndustryTop Companies AI13h agoNov 15, 2026, 06:31 JST

Megabanks re-enter SME lending with AI, starting with SMFG's Trunk

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3 Key Points

What happened
SMFG launched "Trunk" in May 2025 with AI-assisted digital banking for SMEs; Mizuho followed with "UPSIDER BANK by MIZUHO" in June 2026, offering same-day accounts and flat ¥100 transfers.
Why it matters
These services aim to let SME owners focus on management instead of paperwork, and MUFG plans its own offering for 2027, signaling a competitive push into a segment long dominated by regional banks.

WHO IT HITSSME owners gain new digital borrowing options from megabanks, while regional banks like Yokohama Bank face competitive pressure and may need to accelerate their own digital services.

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Context & Analysis

The three megabanks are not new to SME lending, but their earlier attempts struggled. SMFG's "Business Select Loan" faced bad-loan experience, and Mizuho's "Mizuho Smart Business Loan" lost relevance due to COVID-19 crisis lending and ended in 2023. Now, with AI and digital tools, they aim to overcome the cost and manpower hurdles that made SME lending difficult.

The shift to a world with interest rates has changed the calculus: deposits have become a weapon again. Megabanks are building digital services to capture sticky SME deposits, especially as population decline may eventually cap growth in retail banking. The competitive landscape is also shifting, with regional banks like Yokohama Bank feeling threatened and new entrants such as PayPay Bank offering unsecured loans to merchants.

However, SME lending remains relationship-driven. A second-tier regional bank executive noted that some customers say they cannot imagine borrowing without meeting in person. The megabanks' digital push will need to overcome this preference for face-to-face interaction, making market penetration uncertain.

FAQ

What AI features do these SME services offer?: Mizuho's service uses AI to enable business cards with credit limits up to ¥1 billion and AI support for accounting tasks. SMFG's Trunk also uses AI to digitalize operations.
Why are megabanks targeting SME lending now?: The return to a world with interest rates has made deposits valuable again, and megabanks see SME deposits as sticky. Population decline also limits growth in retail banking.
How are regional banks reacting?: Yokohama Bank's president called the megabank move a major threat, and the bank is starting its own digital service for corporate clients.

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