Electronics giant Sony has said it may be opening a Sydney office this year to investigate the viability of offering online banking products, including mortgages, adding yet another player to the growing online financial services market.
However, the announcement has been met with some hesitancy, with the company being hit earlier this year by a massive hacking attack that compromised the private details of millions of customers.
“If we get positive results from the research, we may be able to begin our operations in Australia as early as next (Japanese) fiscal year,” Sony spokesman Tadaaki Nakagawa told The Nikkei. This would mean services may begin from April 2012.
The publication also reports that along with daily financial services, Sony may offer mortgages through its financial arm. These products are already offered in Asia and have helped the company expand, becoming one of the biggest online banking brands in Japan.
These products have also gained popularity, as the company offers many savings accounts with high interest rates and minimal fees.
However, the online banking market within Australia has experienced steady growth over the last decade, with several international players setting up branches here to compete against the big four.
Despite the growing number of customers moving towards online banks and credit unions, a bank run by Sony would still have to compete against the likes of ING, Citi, HSBC and Virgin Money. These have already set up successful branches here and are only continuing to grow in popularity as dissatisfaction with the bigger banks continues to grow.
While the Sony brand is well-known and regarded within Australia, it has suffered a massive blow this year due to its hacking attack. Several hundred thousand Sony customers were affected, and had some of their private details accessed.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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