Mizuho Financial is aiming to almost double the count of its wealth management clients by next year, reported Bloomberg News.

The Japanese bank is planning to take advantage of the new millionaires who have modest cash income and need finance beyond their startups, to drive its wealth push.

Mizuho Financial wealth management strategic project team general manager Masayuki Sakai told the news agency that the bank targets to on board some 1,000 families under its wealth unit by this time next year.

The unit, which currently caters to 600 families at present, to propel this drive through loans for startup company owners with equity holdings of significant value, but relatively small cash income.

Sakai was quoted as saying: “There are many who don’t even own their homes. We would like to respond to their funding needs in a timely manner.”

About 90% profit of Mizuho’s wealth unit, which majorly serves families with over $25bn in assets, is said to come from business owners.

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As part of its new strategy, Mizuho created a wealth management strategic project team in April 2020 and hired wealth advisers within its core banking unit in last July.

Previously, the bank used to offer its private-banking services through its subsidiaries.

According to Sakai, Mizuho now provides financing for initial public offering (IPO) millionaires backed by the owners’ stock holdings as collateral.

He said: “Stock-backed loans are one of the tools to establish long-term relationships with these new riches.

“Good feedback from one client is likely to prompt others to follow.”

In January this year, Mizuho Americas agreed to buy a middle-market placement agent Capstone Partners to bolster its investment bank offering.

Last November, Mizuho said that CEO Tatsufumi Sakai and three other senior executives will step down from their roles after receiving a business improvement order from Japans’ banking regulator in connection with technical system failures.