Sumitomo Mitsui in talks to take stake in SBI Holdings

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.