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SmartBank secures $26M for its personal finance management app

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SmartBank secures $26M for its personal finance management app

The majority of the aging population in Japan still prefers using cash for transactions, according to a recent report citing government data. In 2023, cashless transactions in Japan totaled 126.7 trillion yen ($885 billion), accounting for 39.3 percent of all spending in the country, said the Japanese government. The government hopes that number reaches 40 percent by 2025.

The Japanese government’s initiative to increase cashless transactions is being supported by a Tokyo-based startup called SmartBank, which offers an app and services that make switching to cashless payments easier for people.

Shota Horii (CEO of SmartBank), along with his twin brother Yuta Horii (CTO) and Jun Taketani (CXO), founded the company in 2019 after selling their previous company, Fablic, to Rakuten in 2016. While running Fablic, the three discovered that many users were still using cash for everyday financial transactions. The founders launched SmartBank in an effort to address a problem within the consumer finance industry in Japan.  

SmartBank’s primary target users are individuals in their 20s and 30s seeking to manage personal finances, as well as married couples looking to manage their finances. Now the company says it has more than 1 million downloads, but they did not provide the number of users.

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Its core product is a prepaid card and a finance management app that offers a deposit account. Its prepaid cards include the B/43 My Card, the Visa-branded payment card for single individuals; the B/43 Pair Card for users to manage their finances with their partners; and the B/43 Junior Card for teens.

“Our core user base,[which was B/43 My Card], is now the B/43 Pair Card users…this is significant as banks in Japan do not provide joint bank accounts, and B/43 has become the go-to product,” Shimogawara said.

The startup said Tuesday that it has raised 4 billion JPY ($26 million), with 1.1 billion JPY ($7.2 million) coming from debt financing and 2.9 billion JPY ($18.8 million) from equity provided by its current investor, Global Brain. The equity capital is from a fund formed with SMBC, one of the largest banks in Japan. As of April 2024, SmartBank had raised a total of 5.93 billion JPY ($38.5M) in equity and 1.1 billion JPY in debt since its inception. The startup will use the new capital to double down on hiring from 49 staff in October to around 100 employees by 2025; half of the total workforce will be the engineering team, SmartBank CFO Yuta Shimogawara said in an exclusive interview with TechCrunch.

The latest funding comes roughly two and a half years after its Series A, $20M, in July 2022. The startup has since then expanded its user base and product offerings with the goal of becoming a comprehensive financial platform like a bank, providing a wide range of financial services to users in the future.

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Just last month, the company introduced an AI receipt reading feature by using generative AI technology to transform its app into an AI-driven financial advisor, said Chihaya Akaike, the director of business operations at SmartBank. This feature helps users better understand their finances, optimizes and automates financial activities, and enables them to use, save, and invest their money, Akailke told TechCrunch.

“Consumer fintech services in Japan have been slow to use AI, but our goal is to become the leading AI fintech company in the country,” Akailke continued.

On top of that, the company recently added a feature allowing users to connect their credit cards and bank accounts to B/43 to get a holistic view of their finances. “We will be making our service accessible to non-card users as we open it so that users can start using B/43 without issuing a card and by simply linking their existing credit cards and bank accounts, which will also expand our revenue stream,” Akailke explained.

SmartBank obtained a license for money transfers three years ago, allowing users to withdraw their deposits in cash. It also received a prepaid payment instrument license in April, enabling the startup to hold users’ deposits. The licenses help the company offer services like payments and P2P transfers.

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Its peers like MoneyForward and Zaim cannot hold users’ deposits, which limits their ability to assist users in managing their personal assets, such as savings and investments, according to the company.  

The five-year-old outfit plans to diversify revenue streams beyond its interchange fees (IRF), where most revenue comes from. In addition to IRF, it has implemented other services like Buy Now Pay Later (BNPL), subscription (B/43 Plus), and referrals, Akaike said.

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I sat inside an Afeela and I am so ready for this Sony Honda Mobility EV future

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Sony Honda Mobility Afeela EV protoype

Sony Afeela might be just what this sleeping self-driving EV industry needs. There, I said it, and it’s a change of heart that comes from finally sitting inside the prototype collaboration between Sony and Honda. Sony Afeela, the EV with the silliest name, may offer everything you want, including AI, in a next-level self-driving electric automobile.

It’s been a long road for Sony Honda Mobility’s Afeela EV prototype self-driving car. We first heard about it years ago when it was still called Sony Vision S. The rebrand introduced two years ago at CES 2023 was met with some head-scratching, though.

Vision S was cool. Afeela is a softball for wordplay mockery. Part of the problem is that Sony, for the most part, kept the media at arm‘s length. That changed this week when Sony started inviting the press to a Classic Car Club hanger on Manhanttan’s West side.

Sony Honda Mobility Afeela EV protoype

(Image credit: Future / Lance Ulanoff)

Afeela is a joint project between Sony and Honda, and company reps insist that it’s a 50-50 endeavor. Honda did not simply build an EV and ask Sony for its branding consent. Instead, the fingerprints of both companies are all over the car.

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Tech Life: The fall of a global chip maker

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Tech Life: The fall of a global chip maker

Intel was once unrivalled as the world’s chip maker. Now it’s fallen behind its rivals.

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Need a powerful laptop? This Lenovo ThinkPad is $1,800 off

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Need a powerful laptop? This Lenovo ThinkPad is $1,800 off
A press photo of the ThinkPad X1 Carbon Gen 11.
Lenovo

Students and work-from-home professionals who are looking at laptop deals for a reliable device to carry out heavy workloads should consider taking advantage of Lenovo’s offer for the Lenovo ThinkPad X1 Carbon Gen 11. From its original price of $3,559, the machine is down to a more reasonable $1,673 following a 53% discount. We’re not sure how much time is remaining before you miss out on these huge savings of $1,886 though, so if you’re interested, you’re going to have to complete your purchase of this laptop as soon as possible.

Why you should buy the Lenovo ThinkPad X1 Carbon Gen 11

The ThinkPad line of laptops, which Lenovo inherited from IBM, offers iconic looks, sturdy designs, and helpful business features, according to our explainer on the different Lenovo brands. The Lenovo ThinkPad X1 Carbon Gen 11 is a perfect example, and it holds up as a dependable and powerful machine to this day despite the launch of its successor, the Lenovo ThinkPad X1 Carbon Gen 12. With its 13th-generation Intel Core i7 processor and integrated Intel Iris Xe Graphics, alongside 32GB of RAM that our guide on how much RAM do you need says is the sweet spot for professionals, you won’t find the performance of the Lenovo ThinkPad X1 Carbon Gen 11 lacking. It’s more than enough to handle multitasking between several apps, as well as more demanding processes such as editing videos and building multimedia reports.

The Lenovo ThinkPad X1 Carbon Gen 11 maintains portability with its 14-inch screen with WUXGA resolution, and it’s pretty easy to carry at just 2.5 pounds. The laptop ships with a 1TB SSD for ample storage space for your software and files, and it comes with Windows 11 Pro pre-loaded for access to the popular operating system’s more advanced features.

In one of the most interesting Lenovo laptop deals that you can shop today, the Lenovo ThinkPad X1 Carbon Gen 11 is down to less than half-price after a 53% discount. You can currently buy it from Lenovo for only $1,673, for $1,886 in savings on its sticker price of $3,559, but you’ll need to hurry because the offer may expire at any moment. If you think the Lenovo ThinkPad X1 Carbon Gen 11 is the perfect laptop for your needs, push forward with your transaction right now to make sure you get it for a more affordable price than usual.


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Our lone oil-and-gas stock strikes 2 smart deals — plus, AMD sharpens its AI focus

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Our lone oil-and-gas stock strikes 2 smart deals — plus, AMD sharpens its AI focus


Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.



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Google Pixel Watch next update coming in March 2025

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Google Pixel Watch next update coming in March 2025

Google has confirmed that the Pixel Watch’s next update will not arrive until March 2025, a departure from its usual monthly release schedule. The announcement came after the company skipped an October update, releasing the November 2024 update on Tuesday for all three generations of Pixel Watches.

Update schedule change for Pixel Watch

The delay marks a significant shift in Google’s approach to updates for its smartwatch. The Pixel Watch 3, which received its first post-launch update, along with the Pixel Watch and Pixel Watch 2, saw the continuation of the Wear OS 5 rollout. However, the tech giant clarified that the next update would not be available until March 2025, a three-month gap.

While monthly updates have been the norm for the Pixel Watch, the upcoming delay does not drastically affect user experience. Most of the updates released so far have focused on bumping the security patch level, with minimal new features introduced through system updates. Users can expect new features to arrive via the Play Store in the interim, as the smartwatch’s update cadence has traditionally offered fewer features compared to Pixel phones.

Why the delay?

Google’s decision to delay the next update could be part of a larger strategy to better allocate engineering resources. The company might be aiming to provide more substantial updates on a quarterly basis, allowing for more polished and well-tested features. While this is a departure from the usual rapid update cycle, it could also signal a shift toward more refined and larger-scale upgrades in the future.

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The shift will likely allow Google to focus on improving the quality of updates, rather than merely maintaining a fast release schedule. The next update is now expected to arrive in March 2025, with more details to follow closer to the release.

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A Google ‘test’ will omit EU publishers from news links

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A Google ‘test’ will omit EU publishers from news links

Google is conducting a “test” that will omit results from EU-based news publishers. The company says the time-limited trial will only affect a small portion of users in nine EU countries and will help “assess how results from EU news publishers impact the search experience for our users and traffic to publishers.” But given the fragile state of the news media — and the company’s history of threatening to pull its services in the face of news-related regulations — it’s tempting to view it as the equivalent of a mob boss conducting a “little test” to see how the corner laundromat fares without its protection.

Google describes the experiment (via The Verge) as a “small, time-limited test” to omit EU results from search, Google News and the personalized Discover feed. It will only affect one percent of users in Belgium, Croatia, Denmark, France, Greece, Italy, the Netherlands, Poland and Spain. Those users will still see results from other websites, including non-EU news publications.

The company says news results will reappear as usual once the test concludes. (It didn’t list a specific timeframe.) Google stresses that the experiment won’t impact the publisher payments it makes under the European Copyright Directive (EUCD), under which the company has inked deals with over 4,000 EU publishers.

Google does have a history of using the potential withdrawal of its visibility as a negotiating stick in similar situations. In some cases, the tactic has helped it draw concessions.

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Last year, Google pulled its news links from Canada in response to Bill C-18 (the Online News Act), which required tech companies to negotiate compensation with online publishers for linked content. After months of negotiations, Google said Canada had addressed its concerns and given it a path to an exemption. Canada said it granted one to Google last month, with the company agreeing to pay $100 million annually to news organizations.

In April of this year, Google briefly removed links to California news outlets in response to the proposed California Journalism Preservation Act (CJPA), which would require Google to pay news publishers in exchange for continuing to link to their websites. Although the bill’s fate is still up in the air, Google struck a deal with state lawmakers this summer, committing tens of millions of dollars to a fund supporting local news.

In 2021, the company threatened to remove its entire search engine from Australia in response to a then-proposed law requiring tech companies to share royalties with news publishers. The nation’s then-Prime Minister stood firm. “Let me be clear. Australia makes our rules for things you can do in Australia,” Scott Morrison said. After the bill was passed and enacted, Google struck deals with Australian media companies to license content.

Google says it hopes the data analysis tools it provides publishers will help them use the EU test to “understand traffic patterns.”

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