Sumitomo Mitsui Financial Group (SMFG), together with subsidiaries called SMBC Group, will launch a new digital consumer banking business Jenius Bank in the US.

Jenius Bank will function as a new division of Manufacturers Bank, a California state-chartered bank that is a wholly-owned subsidiary of SMBC Group.

The company expects to launch Jenius Bank with personal loans in the upcoming months and then broaden its product offerings with savings and checking products within its first year.

Manufacturers Bank chairman and CEO Kazuhisa Miyagawa said: “With the launch of Jenius Bank, we have the rare opportunity to build exceptional products from scratch that uniquely meet the needs of today’s digitally-native consumers who need and expect more.”

Jenius Bank is said to have collaborated with several technology providers as part of a digital-first strategy to create an integrated platform that will meet all of the needs of customers.

According to the company, a comprehensive and ongoing consumer research programme has been established by Jenius Bank to inform product designs with direct customer feedback.

SMBC Group president and CEO Jun Ohta said: “The new digital consumer banking business is another tangible example of SMBC Group’s focus and commitment to further enhancing its customer service.”

Jenius Bank is to be headed by John Rosenfeld, who has served as the founder and president of Citizens Access, an online direct bank of Citizens Bank with an experience in the financial services sector for more than 20 years.

Jenius Bank is said to forgo the punitive fees that the majority of banks currently impose. It will also reduce the amount of paper and manual processing will not have any physical branches.

Jenius Bank president John Rosenfeld said: “Our target customers don’t want these things, and the resulting efficiency will allow us to provide more value back to them. We are equally committed to being a fully digital bank and to providing outstanding customer service through a US-based support team.”