Companies

Japan’s Sumitomo Mitsui Offers New Hires Sure Path to U.S., U.K. Branches, with 40％ of Bank Revenue Already Coming from Abroad

Yomiuri Shimbun file photo
Sumitomo Mitsui Banking Corp.

The Yomiuri Shimbun

6:00 JST, October 30, 2024

Sumitomo Mitsui Banking Corp. has created a program for select new hires from April 2025 that will ensure they are assigned to overseas branches as early as their second year of service.

By assuring new hires of where they will be assigned, the bank hopes to secure talented graduates with good English skills. The bank says that it is the first bank in Japan to promise new graduates overseas postings when they are hired.

The new hires will work either in New York or London and the program will be limited to a handful of people, according to the bank. For employees to obtain a working visa, they must work at least a year in Japan. However, as soon as they get their visa, they will be assigned to either city.

Students who want to apply for the program must have strong English skills, such as a score of at least 105 on TOEFL, or the Test of English as a Foreign Language.

Employees in the program will be expected to acquire knowledge and experience necessary for financial businesses in the United States and Europe while they are young through negotiations with international companies and local municipalities overseas. The bank hopes to develop talent that can formulate and implement overseas business strategies in the future.

Since low interest rates have persisted for many years in Japan, major domestic banks have expanded their businesses in foreign countries with higher interest rates. Nearly 40% of Sumitomo Mitsui Banking’s revenue comes from overseas operations.

In the past, the bank focused on the overseas businesses of Japanese companies. Now, it is also working to do more business with local companies in foreign countries.

And as other major Japanese banks try to expand their overseas operations, they too are stepping up efforts to secure international talent.

MUFG Bank and Mizuho Bank have their own special hiring quotas for students who hope to work abroad in the future, but they do not guarantee specific placements.