Two major developments are reshaping the banking and investment landscape as 2026 gets underway: the unexpected closure of Jenius Bank, SMBC’s digital-only U.S. consumer division, and a high-profile partnership between First Abu Dhabi Bank (FAB) and T. Rowe Price, a global asset management powerhouse. While one story marks the end of an ambitious digital banking experiment, the other signals new opportunities for investors across the Middle East—and both reflect the evolving strategies of financial giants in a rapidly changing global market.
On January 8, 2026, Tokyo-based Sumitomo Mitsui Banking Corp. (SMBC) announced it would shutter Jenius Bank, its digital-only U.S. consumer arm. This move, detailed in a regulatory disclosure by Robin Milberg, chief human resources officer of SMBC Americas Division, brings an abrupt halt to what was once an ambitious retail expansion strategy in America. The closure will result in the layoff of 161 employees, including the bank’s president and chief information officer. According to the American Banker, affected employees were informed that their employment will terminate on or around March 10, 2026, following a mandatory 60-day notice period in compliance with the federal Worker Adjustment and Retraining Notification (WARN) Act.
Jenius Bank, based in Los Angeles and operating as a division of SMBC Manubank, had most of its team working remotely. The layoffs, which appear to encompass nearly all U.S. staff, were disclosed in a letter to the State of Oregon, as required by law. Employees will continue to receive their wages and benefits through the end of the notice period, but the news has left many feeling a mix of disappointment and pride in what they accomplished.
April Mazzola, a web and digital strategy leader at Jenius, shared her feelings on LinkedIn: "I'm deeply saddened that SMBC chose not to move forward with a retail banking product, because the team and the potential were absolutely there." She described her colleagues as "some of the smartest, most thoughtful, and most talented" she’s worked with in her career. The sentiment was echoed by other leaders at the bank, who highlighted the team's rapid achievements in a short span.
Jenius Bank had set out to differentiate itself through a cloud-native, paperless operating model aimed at so-called "digital optimizers." One of its standout features was Jenius View, an "evolved banking" tool that allowed customers to aggregate and view external financial accounts in a single dashboard, making it easier to track net worth and spending. Management originally envisioned Jenius as a long-term play, with a patient approach to profitability. In June 2024, John Rosenfeld, president of Jenius, told American Banker, "They're allowing us to do things right, and do things a little more strategically, with the recognition that it'll take us longer to get to long-term profitability."
Despite reaching $1 billion in deposits within just six months—a remarkable feat for a digital startup—the bank’s rapid growth came at a steep price. SMBC Manubank reported a $38.3 million loss in the first quarter of 2024, a figure attributed largely to the substantial costs required to support Jenius’s operations. With hundreds of employees and tens of millions in operating expenses, the digital experiment proved unsustainable in the short term.
As part of the wind-down, SMBC confirmed to American Banker that it will suspend new account openings and loan originations. However, the company has not yet commented on the fate of existing accounts—whether deposits will be transferred to another bank, returned to depositors, or what will happen to the loan portfolio. Jenius Bank’s closure underscores the challenges even large, well-capitalized institutions face when trying to break into the crowded U.S. digital banking market, where customer acquisition is expensive and competition is fierce.
Jenius Bank was operated as a division of SMBC Manubank, a California state-chartered commercial bank based in Los Angeles, and wholly owned by SMBC Americas Holdings—a member of the SMBC Group. The ultimate parent, Sumitomo Mitsui Financial Group (SMFG), is one of Japan’s three largest banking groups with a 400-year history. The decision to close Jenius marks a pivot away from direct U.S. consumer banking, at least for now, as SMBC refocuses its strategy.
While SMBC is winding down its digital retail banking ambitions in the U.S., another major financial institution is charting a different course on the global stage. On January 13, 2026, First Abu Dhabi Bank (FAB)—the UAE’s largest and one of the world’s safest financial institutions—announced a strategic partnership with T. Rowe Price, a renowned global asset management firm. The collaboration, according to a release from T. Rowe Price, will see the asset manager act as FAB’s investment partner, providing solutions across equity, fixed income, alternatives, and multi-asset strategies.
This partnership aims to deliver tailored investment solutions for retail, private banking, and institutional clients across the Gulf Cooperation Council (GCC) region. By leveraging their combined expertise, FAB and T. Rowe Price hope to improve investor outcomes and contribute to the continued development of the GCC’s asset management landscape. The alliance also aligns with global investment standards, reflecting a shared ambition to deliver customized, high-value solutions.
Hana Al Rostamani, Group Chief Executive Officer at FAB, emphasized the significance of the partnership: "This strategic partnership with T. Rowe Price reflects our continued focus on expanding the depth and quality of investment solutions we deliver to our clients. By working with a globally recognised asset manager that shares our strategic ambition and commitment to excellence, we are strengthening our differentiated investment capabilities across key client segments, while reinforcing FAB’s position as the UAE’s global bank and a trusted financial partner across the region."
Rob Sharps, Chair, Chief Executive Officer and President of T. Rowe Price, expressed similar enthusiasm, stating, "We are honored to partner with First Abu Dhabi Bank to deliver world-class investment solutions across public and private markets, tailored to meet the needs of investors throughout the GCC. This collaboration reflects our commitment to growing and diversifying our business through innovative global partnerships. We are excited about the opportunity to grow with FAB across the region and to jointly develop and launch new solutions for clients."
The FAB–T. Rowe Price partnership is designed to enhance client experience, broaden FAB’s wealth and investment franchise, and support long-term growth both within the GCC and globally. For T. Rowe Price, the deal underscores its commitment to the Middle East and its support for sustainable economic growth in the region.
In a global financial sector where digital innovation, strategic alliances, and operational efficiency are all in flux, these two stories offer a snapshot of both the risks and the opportunities facing major institutions. While SMBC’s Jenius Bank reflects the hurdles of scaling new digital ventures in mature markets, the FAB–T. Rowe Price alliance highlights the growing importance of collaboration and regional expertise in serving a diverse, international clientele. Where one door closes, another opens—and the financial world keeps moving forward, reshaping itself with every bold decision.