Docomo’s Over-the-Counter Pivot for Finance

NTT Docomo’s newly formed financial holding company, Docomo FG, is turning its nationwide chain of more than 2,000 mobile phone shops into high-street banking and investment hubs. In an interview with Toyo Keizai, president Hiroshi Hiroi said the shops will initially serve as primary points for opening bank accounts, with the aim of sharply expanding the roughly 10 million accounts the group holds today and doubling overall financial services revenue within five years.

Hiroi, who moved from NTT’s vice presidency to lead the financial group in July 2026, described the physical network as a “major driver” of growth. Staff will approach customers who come in for mobile services, offering d-card payments and then encouraging them to open bank or securities accounts. A critical step, he noted, is getting users to set their new bank account as the settlement account for their d-card.

The move follows a restructuring that began when Docomo made Sumishin SBI Net Bank a consolidated subsidiary in October 2025. In March 2026 it created Docomo FG as an umbrella for its banking, securities, and payment units, and on 3 August the acquired bank was renamed Docomo SMTB Net Bank. The shop-based push aims to convert Docomo’s enormous mobile subscriber base—including those who already use d-card and d-payment—into broader financial customers.

How Docomo Shops Could Reshape Japanese Retail Finance

Why Docomo Is Betting on Bricks-and-Mortar for Digital Finance

Docomo’s leadership clearly sees a gap that pure digital banks miss. Hiroi stressed that many people remain uncomfortable managing deposits and investments entirely online, even if they have grown used to digital payments. By offering face-to-face support in familiar Docomo Shops, the group aims to lower the psychological barrier that stops customers from moving beyond a credit card or mobile wallet into savings and asset management. The shop network also plugs a geographic hole: bank branches have been closing across rural Japan, leaving fewer places to buy investment trusts. Docomo Shops, spread widely even in smaller towns, could become de facto financial advice counters.

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The Competition: A Threat to Regional Banks and Online Rivals

The strategy pits Docomo directly against Japan’s regional banks and online brokerages. If the shops succeed, they will siphon deposits and investment flows from local lenders that are already struggling with branch cutbacks. At the same time, Docomo’s captive customer base of tens of millions of mobile users gives it a distribution edge that internet-only financial firms cannot easily replicate. Hiroi also pointed to an affluent segment: d-card platinum and gold holders, who are natural candidates for higher-margin securities and wealth products. By feeding that demographic into its newly consolidated securities arm, Docomo can target revenue from both mass-market deposits and up-market asset management.

Execution Risks: Can Shop Staff Sell Investment Products?

The plan’s biggest test is operational. Docomo shop employees have traditionally handled contracts, repairs, and billing—not financial product sales. Hiroi acknowledged the extra load and said the company is addressing it, but provided no concrete details in the interview. Regulators will also watch closely: any mis-selling of complex investment products at a mobile phone counter could trigger reputational damage and scrutiny. For now, the company is starting with account opening and payment card setup, a lower-risk entry point that builds customer data before upselling more sophisticated products.

What Docomo’s Stakeholders Should Watch Next

  • Monitor Docomo’s account growth numbers in the coming quarters. Hiroi put the current bank account count at “just under 10 million”—a base that must expand materially for the five-year revenue doubling to be credible.
  • Watch for signs of operational strain in Docomo Shops. The strategy hinges on shop staff handling financial sales; any delays or customer complaints about unprepared personnel will signal execution risk.
  • Regional banks in Japan, particularly those in areas where Docomo Shops are the main physical presence, should assess how much of their investment-trust and deposit business could migrate to a telecom-led shop network.
  • SBI Holdings and Sumitomo Mitsui Trust Bank, which previously co-controlled the bank now renamed Docomo SMTB Net Bank, may need to reposition their own fintech ventures as Docomo consolidates its control and redirects customer flows.

Risk & Opportunity Assessment

Commercial RiskHighThe entire revenue-doubling target depends on converting millions of mobile customers into financial product users through shop staff, a model that is unproven at scale for Docomo. Any failure in account-opening execution or staff training would directly hit the financial segment’s growth.
Competitive RiskMediumIf successful, Docomo Shops could capture deposit and investment flows from regional banks and online brokerages, but the threat is medium because many rivals already have digital-only offerings and the physical conversion model may take years to mature.
Regulatory RiskLowNo immediate regulatory hurdles were identified in the interview. Financial product sales through shops are standard in Japan as long as proper licensing and customer protections are in place, though heightened scrutiny would follow any mis-selling.
Reputation RiskMediumSelling securities and investment trusts at a mobile phone counter invites reputational harm if customers feel pressured or receive poor advice. Docomo’s consumer brand could suffer quickly from complaints about aggressive cross-selling.
Technology DisruptionMediumThe strategy blends physical and digital finance; while it currently relies on shop counters, the rise of purely AI-driven advisory tools could eventually diminish the advantage of face-to-face interaction, forcing Docomo to upgrade its digital capabilities alongside its physical push.
Commercial OpportunityHighDocomo holds a unique asset in its 2,000-shop network and 85 million-plus mobile subscriptions. Successfully converting even a small fraction of those users into bank and securities customers could create a significant new profit pool, justifying the ambitious five-year doubling target.