Sony Corp. plans to make its financial arm a wholly owned subsidiary at a cost of 400 billion yen ($3.7 billion), a source close to the matter said Tuesday.

By absorbing Sony Financial Holdings Inc., the electronics and entertainment giant hopes to put its technologies, such as artificial intelligence, to work in banking and insurance businesses, the source said.

It is expected to make a formal announcement later Tuesday, the source said.

Sony has a 65 percent stake in Sony Financial Holdings, which is listed on the First Section of the Tokyo Stock Exchange.

==Kyodo

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