GMO Aozora Net Bank corporate customer profile

In the "2024 Corporate Main Bank Survey", GMO Aozora Net Bank topped the list for increase in main bank corporate customers (for companies with 500 or more clients). While GMO Aozora Net Bank was previously not included in the analysis due to this threshold, in 2024 its customer base rapidly increased to 890 companies, achieving a remarkable 118.6% year-on-year growth rate.

The internet-only bank, established in July 2018, is particularly popular among startups and newly established companies. Key strengths include:

• Free interbank transfers up to 20 times per month for companies less than one year old
• Same-day account opening
• Speed of service

Corporate Geographic Distribution

Of the 890 companies using GMO Aozora Net Bank as their main bank:

• Tokyo: 406 companies (45.6%)
• Kanagawa Prefecture: 91 companies (10.2%)
• Osaka Prefecture: 67 companies (7.5%)
• Chiba Prefecture: 56 companies (6.2%)
• Saitama Prefecture: 55 companies (6.1%)

The concentration is heavily skewed towards major urban areas. In contrast:

• Hokuriku region: 7 companies (0.7%)
• Tohoku region: 12 companies (1.3%)

Company Profile Breakdown

Business Age

Companies with business history:

• Less than 3 years: 610 companies (68.5%)
• 3-5 years: 217 companies (24.3%)
• 5-10 years: 46 companies (5.1%)
• 10-30 years: 15 companies (1.6%)

Notably, 92.9% of companies are less than 5 years old.

Revenue and Capital

• Companies with revenue under ¥100 million: 373 of 431 (86.5%)
• Capital between ¥1-5 million: 438 companies (49.2%)
• Capital under ¥10 million: 782 companies (87.8%)
• Companies with fewer than 4 employees: 574 companies (64.4%)

Industry Composition

Top industries:

• Service sector: 387 companies (43.4%)
• Information and Communication: 219 companies (24.6%)

Detailed breakdown:

• Information Services (software development): 162 companies (18.2%)
• Professional Services (management consulting): 159 companies (17.8%)

The bank appears particularly attractive to IT and consulting firms.

Growth Trajectory

From March 2023 to March 2024:

• 11 companies switched from GMO Aozora as main bank
  • 60% moved to mega banks, regional banks, or credit unions
  • About 40% due to business closure or dissolution
• 494 new companies made GMO Aozora their main bank
  • Majority from service sector (224 companies)
  • Predominantly based in Tokyo (218 companies)

Market Perspective

The growth rate demonstrates the momentum of online banks, outpacing traditional regional banks and credit unions.

However, the total number of companies remains small compared to traditional banks. The focus is on small-scale businesses with funding and credit constraints.

The bank's challenge will be how effectively it can communicate its unique value proposition and support client businesses.

Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on LinkedIn, or directly here on the platform.

We also provide a daily short-form Japan FinTech Observer news podcast, available via its Podcast Page. Our global Finance & FinTech Podcast, “eXponential Finance” is available through its own LinkedIn newsletter, or via its Podcast Page.

Should you live in Tokyo, or just pass through, please also join our meetup. In any case, our YouTube channel and LinkedIn page are there for you as well.