Mizuho says local banks best for Japan's wealthy

TOKYO (Reuters) - As foreign private bankers make inroads into Japan's wealth management market by touting their expertise and global reach, the country's second-largest financial group is highlighting its decidedly Japanese roots.

Mizuho Bank, part of Mizuho Financial Group Inc. (8411.T: Quote, Profile, Research, Stock Buzz), is emphasizing to clients that it's there for the long run and is going the extra mile by offering to help with everything from art buying to overseas studies for children.

"Build a relationship for 100 years, that's our motto," Takashi Nonaka, managing director of the bank's consumer and private banking unit, said at the Reuters Wealth Management Summit on Wednesday.

"Foreign firms are fixated on short-term profits. And if they think there is no profitability in a country's private banking business, they will pull out or scale down," Nonaka said.

The Mizuho group launched a separate private banking unit in 2005 to target ultra-wealthy clients with investable assets of 500 million yen ($4.25 million) or more.

For those wealthy few, Mizuho is adopting a Swiss-style private banking model by offering more than just banking.

"The wealthy have their own problems, and those aren't just financial. They have problems related to sending their children to study abroad, or problems pertaining to their hobbies."

The bank has established contacts outside of Japan to help clients procure rare art at auctions or exotic automobiles.

So far, some 220 individuals have signed up to have the unit manage their funds. Nonaka is aiming for 80 new clients by March, and about 100 each year after.  Continued...