The Wall Street firm will take a four per cent stake in Sony's proposed venture, Sony announced Thursday. Sakura Bank Ltd will take a 16 per cent stake, as well as provide access to the online accounts through its automated teller machines. Sony will invest 80 per cent of the 37.5 billion yen ($354.9 million) in capital and could submit its application for a banking license as early as next week.

The electronics giant is proceeding with care because banking has long been a sacred cow in Japan, protected by the government and open only to a select number of firms. Still, Sony and a host of companies like it are getting closer to breaking in.

Supermarket owner Ito-Yokado Co is negotiating with Japanese regulators to get a banking license that would let it handle settlements for business at its 7-Eleven convenience store chain, while Toyota Motor Corp is mulling the launch of a financial-services site dubbed Gazoo. Softbank Corp, a publisher-turned-Internet investor, is leading a consortium that is negotiating the purchase of Nippon Credit Bank Ltd from the Japanese government. Sony, which initially wanted a bank to handle settlements for online sales, said it hopes to focus first on basic services such as loans and bill payments, then move on to other financial products for retail customers.That's one area where it is looking to JP Morgan for assistance.

JP Morgan may help Sony develop online private-banking services similar to the ones it already offers in the US, the person familiar with the situation said. Foreign banks are better at developing new kinds of financial services than Japanese banks, said Morimoto.