Money Forward Private Bank raises 1 billion yen in funding

Money Forward Private Bank Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Takayuki Sato; Vice President and COO: Yosuke Tsuji; hereinafter "Money Forward Private Bank"), which develops an asset management platform and consulting business for ultra-high-net-worth individuals, announced that it has completed a third-party allotment of new shares totaling 1 billion yen, with Spiral Innovation Partners Co., Ltd. (managing the Yucho Spiral Regional Innovation Fund and Mori Building Innovation Fund) and Sumitomo Mitsui Trust Bank, Limited (hereinafter "Sumitomo Mitsui Trust Bank") as subscribers.

These funds will be used to advance asset management and document management services, evolve services and business processes based on AI, enhance consulting and operational capabilities, recruit talent, and strengthen collaboration with financial institutions and specialists, thereby accelerating the construction of a wealth management foundation for the AI era.

Furthermore, we are pleased to announce that we have entered into a capital and business alliance agreement with Sumitomo Mitsui Trust Bank in conjunction with this investment.

Background of this Funding Round

●Changing Environment for Ultra-High-Net-Worth Individuals

Asset management for ultra-high-net-worth individuals is becoming increasingly complex year by year. In addition to deposits, securities, real estate, and unlisted stocks, the diversification of assets, including digital assets, has been progressing in recent years. The environment surrounding asset management continues to change, with the need to address business succession and asset succession, as well as the increasing sophistication of domestic and international tax systems and compliance requirements.

Moreover, numerous advisors, including financial institutions, private bankers, consultants, tax accountants, certified public accountants, and lawyers, are involved in the decision-making of ultra-high-net-worth individuals.

In this context, it is becoming more important than ever to continuously organize information necessary for decision-making, such as asset information and important documents, and to maintain a state where it can be shared and utilized with appropriate stakeholders for smooth decision-making and execution.

●From Asset Management to AI-Powered Decision Support

Previous asset management services have focused on "understanding assets." On the other hand, what is truly important for ultra-high-net-worth individuals is not just understanding their assets, but using that information to make appropriate decisions.

The evolution of generative AI in recent years has greatly expanded the possibilities for information utilization. However, information surrounding ultra-high-net-worth individuals exists in multiple locations, including personal assets, corporate assets, various contracts, and inheritance-related documents. If this information is not organized and integrated, even support from AI, financial institutions, and specialists cannot deliver sufficient value.

Money Forward Private Bank provides a service that integrates asset information dispersed across individuals, asset management companies, and families, visualizing and analyzing assets, liabilities, and cash flow on a consolidated basis. By comprehensively grasping investment efficiency, liquidity, and future tax forecasts, it supports sophisticated decision-making regarding asset preservation, management, and succession.

Utilizing the funds raised this time, we aim to realize a new wealth management experience that enables ultra-high-net-worth individuals, financial institutions, and specialists to make higher-quality decisions by fusing technology and expertise, through the advancement of asset management and document management services, as well as the evolution of services and business processes based on AI.

<Areas to be Strengthened by This Funding Round>

• Evolution of services and business processes based on AI

• Advancement of asset management and document management services

• Enhancement of consulting and operational capabilities

• Strengthening collaboration with financial institutions and specialists

Comment from Takayuki Sato, President and CEO

The environment surrounding ultra-high-net-worth individuals is becoming more complex each year, making it difficult for a single specialist or financial institution to grasp the overall picture.

We aim to build a wealth management foundation that connects ultra-high-net-worth individuals with their advisors, not just providing asset management services.

With this funding, we will further accelerate recruitment, product development, and collaboration with financial institutions and professionals, aiming to establish a new standard for wealth management in Japan.

Comments from Investors

Kazuhiro Kamata, General Partner, Spiral Innovation Partners Co., Ltd.

We have invested through the Yucho Spiral Regional Innovation Fund and the Mori Building Innovation Fund. Money Forward Private Bank is working to build an integrated platform for previously dispersed asset and customer information, aiming to become a new wealth management platform for the affluent in the AI era.

We expect that under the leadership of Mr. Sato, who has deep knowledge of the private banking industry for many years, and Mr. Tsuji, who has promoted the visualization of finances, the company's management team, with its high expertise and execution capabilities, will evolve into a platform that can provide individuals with higher-quality decision-making and a wider range of options based on data. Our entire team will fully support the company's challenge.

Regarding Capital and Business Alliance with Sumitomo Mitsui Trust Bank

In conjunction with this funding round, Money Forward Private Bank has entered into a capital and business alliance agreement with Sumitomo Mitsui Trust Bank.

Money Forward Private Bank is building a comprehensive wealth management foundation that connects ultra-high-net-worth clients with financial institutions, private bankers, specialists such as tax accountants and lawyers, as well as real estate companies and service providers for the wealthy, through the visualization of assets and documents utilizing technology.

Meanwhile, Sumitomo Mitsui Trust Bank has cultivated advanced expertise in areas such as inheritance, real estate, and asset succession over many years, and has provided comprehensive solutions to wealthy clients.

Through this alliance, both companies will leverage their respective strengths to promote collaboration aimed at enhancing wealth management services for ultra-high-net-worth individuals. Specifically, we will visualize the assets of ultra-high-net-worth clients through Money Forward Private Bank's platform and support the identification of fundamental issues and needs. Based on this, we will create an environment where ultra-high-net-worth clients can access solutions that leverage Sumitomo Mitsui Trust Bank's expertise as needed.

Furthermore, in the future, we aim to create a new service experience that seamlessly connects with customers on our platform by having Sumitomo Mitsui Trust Bank participate in our platform, and we will deepen discussions on collaboration in both business and system aspects.

Sumitomo Mitsui Trust Bank, Limited. Comment

Our wealth management business, with its strengths in advanced expertise in asset management, asset administration, and real estate, is dedicated to supporting the rich and happy lives of our clients and their families. By integrating the power of digital technologies such as MFPB's asset visualization technology with our strengths, we will provide even more value-added wealth management services.

About Money Forward Private Bank's Services

Money Forward Private Bank currently offers the following services:

• Asset Management Service: Supports visualization of asset information across multiple financial institutions

• Document Management Service: Supports organization and management of important documents by combining AI technology with specialized team operations

In addition, we are building an operational foundation within our company to improve the efficiency and sophistication of operations for ultra-high-net-worth individuals. Currently, we are receiving introductions from financial institutions, collaborating with regional banks, and being utilized by specialists such as tax accountant corporations and accounting firms, expanding as an information base for the entire advisor network surrounding ultra-high-net-worth individuals.

In the future, we aim to build a system that can more naturally organize and link asset information, document information, and decision-making information, creating an environment where ultra-high-net-worth individuals and their advisors can make decisions based on the same information.

Company Overview

Company Name: Money Forward Private Bank Co., Ltd. Location: 4F, Midtown East, 9-7-2 Akasaka, Minato-ku, Tokyo Representatives: President and CEO Takayuki Sato, Vice President and COO Yosuke Tsuji Establishment Date: February 26, 2024 Business Activities: Development and operation of asset management platform and provision of family office services URL: https://moneyforwardprivatebank.com/