Sony to establish Internet bank in April

The new Internet-only bank aims to contract 600,000 accounts in five years with deposits totalling 1 trillion yen (8.1 billion dollars), Sony said. Sony is the major shareholder with a 80 per cent stake and Japan's leading Sakura Bank will have a 16 per cent stake and U.S. investment bank J.P. Morgan will have a 4 per cent stake in the new bank.

The Japanese Financial Services Agency issued the new bank a preliminary license earlier in the day. Sony expects the new online banking business to help expand small-lot sales of the group's abundant Internet content such as music, videos and films online.

For its electronic banking scheme, Sony plans to use its "Felica" electronic cards that can be used for both online commerce and at normal shops.

The cards allow for instant payment simply by holding them over a registered terminal. Users will be able to deposit funds for the card in advance through the Internet and at special terminals in convenience stores and at other locations.

(la/sda)