SMBC launches “Social Deposit” accounts

Sumitomo Mitsui Banking Corporation (SMBC) will begin offering “Social Deposits” for corporate and individual customers in Japan starting April 1, 2024.

“Social Deposits” are deposit products that allow customers to invest their deposited funds in financing aimed at solving social issues such as poverty and inequality, thereby providing them with investment opportunities in the sustainability field. Through Social Deposits, SMBC aims to promote a system that generates a circulation of funds toward resolving social issues by fostering collaboration among various members of society, including corporations, individuals, universities, and government institutions, transcending boundaries.

Initially, SMBC will start with foreign currency deposits, expanding efforts to address various social issues going forward.

SMBC has formulated the “SMBC Social Deposit Framework” and obtained an evaluation from a third-party assessment institution. In developing and operating Social Deposits, SMBC has also shared insights with Gojo & Company, a company with which it collaborates on financial inclusion in emerging countries.

The SMBC Social Deposit Framework is a framework that defines the use of funds deposited through Social Deposits, the evaluation and selection process, fund management, reporting, etc. The third-party assessment institution, DNV Business Assurance Japan, has evaluated the eligibility by applying the four core components defined in the Social Loan Principles. SMBC will also receive an annual review by DNV on the proper operation and management based on this framework, and plans to disclose the results annually.

The SMBC Group, including SMBC, formulated the new medium-term management plan “Plan for Fulfilled Growth” in 2023, positioning “creation of social value” as one of the pillars of its management. Additionally, the Group has identified five key priorities to address urgent social issues: “Environment,” “DE&I/Human Rights,” “Poverty/Inequality,” “Aging Population/Low Birthrate,” and “Japan’s Revitalization.”

Through Social Deposits, SMBC will actively contribute to resolving these key priorities and creating social value.

”Social Deposit” Product Overview

• Target Customers: individual customers, central banks, financial institutions, business corporations, educational institutions, independent administrative agencies, etc. in Japan
• Currency: U.S. Dollar (individuals), U.S. Dollar and other currencies approved by SMBC (corporates)
• Transaction Type: General Foreign Currency Time Deposits
• Deposit Period: 1 year (individuals), 30 days to 1 year (corporates)
• Minimum Deposit Amount: equivalent to 500,000 U.S. Dollars or more (individuals), equivalent to 1,000,000 U.S. Dollars or more (corporates)
• Eligible Assets: Loans for Social Eligible Projects defined in the “SMBC Social Deposit Framework,” selected by SMBC

SMBC has defined the criteria for Social Eligible Projects in the “SMBC Social Deposit Framework.” Eight business categories have been set as targets, including, for example, loans for microfinance services for micro, small, and medium-sized enterprises in emerging countries, and loans for affordable housing service businesses.

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