Tokyo-based Monex Inc, which provides securities trading services, announced the closure of a deal with AEON Bank for their partnership in the financial instruments intermediary business.

The two companies are now seeking approval from government bodies and are expected to offer the services under the new structure from January 2024.

Monex and AEON Bank Ink Expanded Agreement

According to the agreement between the two on Tuesday, Monex will provide asset management services to the customers of AEON Bank. The Tokyo-headquartered lender will also plan to develop new products and a diverse product lineup by leveraging the services of Monex. It specified that the partnership would boost AEON Bank’s product and services lineup, including offering mutual funds, from approximately 300 to 1,200.

“By having Monex handle system management and back-office operations related to the asset management business, AEON Bank will be able to shift its management resources to improve and enhance the quality of its services for greater customer satisfaction,” the official announcement added.

The lender will transfer the rights and obligations of its customers’ mutual fund accounts to Monex through a corporate split. Additionally, AEON customers will receive support from both the lender and Monex.

“After the Partnership takes effect, AEON Bank will continue to sell mutual fund as a financial products brokerage agent commissioned by Monex, and Monex will execute customer transactions and manage customer accounts,” the announcement stated.

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Monex, AEON Bank Extension of Partnership Expected

Under the partnership, the two financial service providers will jointly plan and study new products and services to allow customers to easily start asset management. The aim is to ease the entry barrier of asset management so that customers can accumulate mutual funds in small amounts with AEON-issued credit cards.

Furthermore, the two companies will explore the idea of allowing AEON customers to invest using the points acquired on credit cards.

“Monex and AEON Bank will continuously study the potential opportunities of the Partnership such as joint marketing strategies to further support customers’ asset building that enrich their lives,” the announcement added.