Japan's Sumitomo Mitsui Financial Group is in talks to invest in Japanese online banking giant SBI Holdings.
Sources say the megabank plans to acquire about a 10-percent stake in SBI.
SBI will reportedly issue new shares and allocate them to Sumitomo Mitsui.
A stake in SBI would give Sumitomo Mitsui access to new young customers as well as strengthen its online securities business.
For SBI, a deal could expand its online banking business thanks to the huge customer base of Sumitomo Mitsui's bank and credit card units.
This is not the first tie-up between the two companies. Sumitomo Mitsui already has a 20-percent stake in an SBI subsidiary that offers stock transactions through smartphones.
The financial giants strengthened their ties earlier this month by jointly establishing a private securities exchange.