Toyota Motor Corp. has applied for a banking license in the United States, eyeing financial services as a way to strengthen its position in the highly competitive automobile market here, according to the Wall Street Journal.

Toyota Motor is the first Japanese automaker to apply for a U.S. banking license, according to the Journal. Assuming that a license

is granted, Toyota plans to focus initially on acting as a banking institution for its network of affiliated dealerships in the United States, holding and investing their funds.

The automaker later plans to offer a range of financial services, including credit cards and home loans, to Toyota owners, the Journal said.

According to the Journal, Toyota sees a banking unit as a powerful weapon in the battle to expand its base of wealthy clients for high-end luxury cars, but it also expects the unit to become a new source of revenue over the

medium to long term.