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Schwab Nets Japanese savers
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June 2, 1999: 4:00 a.m. ET
Online brokerage giant cements global expansion with launch of Japan service
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LONDON (CNNfn) - Charles Schwab, the market leader in the booming online brokerage market, announced a deal Wednesday to launch a full-service Japanese brokerage in partnership with Tokio Marine & Fire Insurance.
The deal cements Schwab's global expansion following the successful launch of a European operation, expansion in Latin America and entry to the Asian market through a Hong Kong-based brokerage service.
Schwab, the largest online broker with 5.1 million accounts around the world, is following a flurry of cross-border tie-ups by overseas firms targeting Japan's broad retail investor base and weakened local competitors after the "Big Bang" deregulation of financial services in Japan on April 1.
Merrill Lynch, which launched its own U.S. online brokerage Tuesday, has expanded rapidly in Japan following its acquisition of assets from bankrupt Yamaichi Securities.
Japan still boasts one of the highest savings rates in the developed world despite the lingering recession. Cash-rich Japanese savers have started to turn to mutual funds and other instruments as interest rates on bank deposits have dwindled to near-zero.
Electronics giant Sony Corp. has already jumped on the on-line brokerage bandwagon, setting up a joint venture to sell mutual funds and other investment products via the Internet. Softbank Corp. and a leading travel agent, H.I.S. Co. have also launched online services.
Charles Schwab (SCH) stock closed down 6 at 99-1/2.
-- from staff and wire reports
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Charles Schwab
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