Toho System Science

Basic Information

Stock Code
4333
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
June 1971
Listing Year
December 2001
Official Website
https://www.tss.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
CubeSys, Fixstars, System Research, HiMax, Japan System Techniques, Base, Cresco, TDC Soft, Alpha Systems, Tokei Densan, CEC, NSW, NSD

Overview

Toho System Science is an independent IT service company founded in 1971, specializing in system development for financial institutions, leveraging its high technological capabilities to establish a solid position in the information and communications industry.

Current Situation

Toho System Science specializes in system development for financial institutions and has maintained a stable order base in recent years. Performance in 2023 was steady, particularly with strong competitiveness in system orders and software development, characterized by high customer satisfaction. The company is focusing on introducing new technologies and improving service quality to differentiate itself from competitors. In terms of sustainability, it is optimizing IT infrastructure to reduce environmental impact. In the medium to long term, it aims to expand DX support for financial institutions by leveraging AI and cloud technologies. Recently, there has been notable activity around a TOB, with efforts underway to strengthen business through potential management integration. It is also considering expansion into diverse industries for further growth.

Trivia

Interesting Facts

  • Implements dozens of financial institution system update projects annually
  • Independent company continuously providing IT services specialized in finance since founding
  • Hosts many top IT engineers in Tokyo with enriched internal training system
  • Holds multiple patented technologies contributing to industry standardization
  • Numerous achievements in system development compliant with Financial Services Agency IT guidelines
  • High internal code review rate with focus on quality management
  • Conducts ongoing customer satisfaction surveys over long periods
  • Advanced security operation system praised and awarded by multiple customers
  • Regularly holds internal networking events and technical study sessions
  • Strength in supporting diverse languages and platforms
  • Company attracts market attention during TOB implementations
  • Technology division advances joint research with some universities
  • Actively participates in multiple social contribution activities
  • Actively promotes active roles for female engineers
  • Many young engineers active in AI and finance fusion field

Hidden Connections

  • Secures stable orders from multiple major financial players, building strong relationships
  • Jointly develops some systems with other independent IT companies, contributing to industry standardization
  • Shares legal regulations and technology trends through participation in industry associations
  • Deeply involved in DX promotion for some customer companies, providing ongoing support
  • Advances cutting-edge technology research and technology transfer through collaborations with universities and research institutions
  • Collaborates with overseas vendors in system development to establish global response capabilities
  • Influences stock prices of peer and related companies during TOB
  • Risk management software adopted as common platform by multiple financial institutions

Future Outlook

Growth Drivers

  • Increasing system demand accompanying acceleration of financial institutions' DX promotion
  • Expansion of cloud and AI technology adoption
  • Growing demand for advanced security responses
  • Expansion of support from government digitalization promotion policies
  • Strengthened collaborations with emerging fintech companies
  • Growing demand for large-scale data analytics services
  • Increase in IT outsourcing accompanying workstyle reforms
  • Advancement of system integration through API linkages
  • Diversification of industry-specific solution needs
  • Technology enhancement through talent development

Strategic Goals

  • Achieve 30% market share in cloud platforms for finance
  • AI-utilizing service sales exceeding ¥20 billion
  • 50% reduction in CO2 emissions through sustainability initiatives
  • Achieve 30% female managerial ratio through diversity promotion
  • Acquire 500 new customers through DX support
  • Complete company-wide deployment of business automation technology
  • Advance into overseas markets and strengthen partnerships
  • Improve technological capabilities through employee skill enhancement
  • Gain industry top-level evaluation in security field
  • Establish management foundation supporting long-term stable growth

Business Segments

Financial System Solutions

Overview
Provides safe and stable business foundations for the financial industry, supporting business efficiency and digitalization.
Competitiveness
Reliability backed by advanced financial business knowledge and extensive development track record
Customers
  • Banks
  • Credit Unions
  • Insurance Companies
  • Securities Firms
  • Credit Cooperatives
  • Mutual Aid Organizations
  • Non-Bank Lenders
Products
  • Core Business Systems
  • Online Payment Systems
  • Risk Management Systems
  • Compliance Tools
  • Investment Management Systems
  • Asset Management Platforms

IT Outsourcing and Operation Support

Overview
Provides high-quality outsourcing and maintenance operation services to improve customers' IT operations efficiency.
Competitiveness
Thorough quality control and high operation expertise
Customers
  • Major Financial Institutions
  • System Vendors
  • Operation Outsourcing Companies
  • Public Institutions
Products
  • Data Entry Services
  • System Monitoring and Maintenance
  • Helpdesk Support
  • Cloud Operation Management

Cloud Infrastructure and Service Provision

Overview
Utilizes cloud infrastructure to provide flexible and scalable IT environments to customers.
Competitiveness
Secure and scalable cloud architecture
Customers
  • Small and Medium Enterprises
  • Financial Institutions
  • IT Vendors
  • Service Providers
Products
  • Cloud ERP
  • Cloud CRM
  • Backup Services

AI and Analytics Services

Overview
Supports business improvements through data analysis and prediction using AI technology.
Competitiveness
Specialized AI algorithm development capabilities
Customers
  • Financial Institutions
  • Manufacturing
  • Distribution
  • Retail
Products
  • Big Data Analytics
  • Machine Learning Model Development
  • Predictive Analytics Tools

Security Solutions

Overview
Provides security services specialized in preventing information leaks and ensuring legal compliance.
Competitiveness
Advanced monitoring technology and extensive response track record
Customers
  • Financial Institutions
  • Information Service Companies
  • Public Interest Corporations
Products
  • Cybersecurity Systems
  • Monitoring Services
  • Compliance Support

Business Process Automation

Overview
Provides automation solutions to reduce manual work and achieve business efficiency.
Competitiveness
Automation expertise specialized in financial operations
Customers
  • Financial Institutions
  • Service Industry
  • Manufacturing
Products
  • RPA Tools
  • Workflow Management Systems

Education and Training Services

Overview
Deploys education services to support skill improvement for IT professionals.
Competitiveness
Practical training programs tailored to the financial industry
Customers
  • System Engineers
  • IT Professionals
  • Corporate Customers
Products
  • IT Skills Training
  • Business Knowledge Courses

Infrastructure Design and Construction

Overview
Supports construction of IT infrastructure balancing stability and scalability.
Competitiveness
Extensive experience in designing complex systems
Customers
  • IT Companies
  • Financial Institutions
  • Public Institutions
Products
  • Network Design
  • Server Construction and Operation

Cloud Migration Support

Overview
Support services to smoothly advance cloud migration of existing environments.
Competitiveness
Broad compatibility with various cloud environments
Customers
  • Corporate IT Departments
  • SIers
Products
  • Cloud Migration Consulting
  • Hybrid Cloud Management

Industry-Specific Specialized Solutions

Overview
Provides IT solutions tailored to industry-specific needs.
Competitiveness
Fusion of financial expertise and technology
Customers
  • Insurance Companies
  • Securities Firms
  • Financial Service Companies
Products
  • Insurance Business Systems
  • Securities Trading Systems

API Integration Services

Overview
Provides platforms to achieve safe and efficient API integration.
Competitiveness
High reliability in financial API development
Customers
  • Banks
  • Fintech Companies
  • Service Providers
Products
  • API Platforms
  • Open Banking Support

Competitive Advantage

Strengths

  • High technological expertise specialized for financial institutions
  • Solid customer base and long-term transaction record
  • Diverse system development experience
  • Flexible responsiveness and customization capabilities
  • Stable revenue base
  • Active adoption of latest technologies
  • High-quality management system
  • Specialized knowledge of the financial industry
  • Comprehensive service deployment
  • Robust security measures
  • Extensive outsourcing track record
  • Reliable operation support
  • Cloud service deployment capabilities
  • Agility unique to mid-sized companies
  • Customer-centric detailed services

Competitive Advantages

  • Possesses unique system development know-how specialized for the financial industry
  • Has earned long-term trust from numerous financial institutions
  • Provides advanced services leveraging AI and cloud technologies
  • Achieves customer business efficiency through comprehensive outsourcing services
  • Provides high-security environments and supports legal compliance
  • Flexible customization responses to adapt to customer needs
  • Strengthens competitiveness within the industry through diverse industry-specific solutions
  • Reduces operation costs through self-developed platforms
  • Expands customer touchpoints via broad sales channels
  • Promotes engineer development through education and training services
  • Improves customer satisfaction with smooth cloud migration support
  • Secures competitive edge in the fintech market through API integration technology
  • Enhances reliability with robust network infrastructure construction
  • Supports resolution of financial institution challenges with advanced risk management tools
  • Deepens technology and enriches services through long-term investments

Threats

  • Intense price competition from competitors in similar services
  • Need to adapt to rapid technological changes
  • Increased compliance costs due to strengthened financial regulations
  • Intensifying competition with cloud service providers
  • Market pressure from entry of major IT companies into finance
  • Increasing cyber attack risks
  • Potential order reduction due to customers' in-house IT development trend
  • Investment recovery risks in emerging technologies
  • IT investment restraint in financial industry due to economic fluctuations
  • Recruitment difficulties from intensified talent competition
  • Business risks accompanying changes in DX market needs
  • Increased system update burden due to legal amendments

Innovations

2024: Cloud-Native Financial Platform Development

Overview
Built a new-generation financial system platform operating in cloud environments.
Impact
20% reduction in customer operation costs, improved system scalability

2023: Introduction of AI-Utilizing Risk Management Tools

Overview
Developed an automatic financial risk analysis system using machine learning.
Impact
30% improvement in risk detection accuracy, significant reduction in analysis time

2022: Enhancement of API Integration Platform

Overview
Developed open banking-compatible APIs and strengthened security.
Impact
Improved transaction speed and customer satisfaction

2021: Promotion of Business Automation through RPA Introduction

Overview
Expanded robot introduction to internal and external business processes for efficiency.
Impact
15% reduction in workload, decreased human errors

2020: Development of Enhanced Security Systems

Overview
Introduced advanced cyber attack defense systems for financial institutions.
Impact
Reduced information leak risks, improved safety

Sustainability

  • CO2 reduction through improved energy efficiency in data centers
  • Promotion of paperless operations via electronic contracts and invoicing
  • Advancement of remote work environments to reduce commuting
  • Ongoing support for environmental protection organizations
  • Strengthened evaluation of supply chain environmental and social aspects
  • Promotion of IT asset recycling and waste reduction
  • Workstyle reform through diversity promotion
  • Advancement of environmentally related services development
  • Promotion of SDGs understanding through internal education
  • Operation cost reduction through energy-saving technology adoption
  • Support for greening transportation options
  • Implementation of employee environmental awareness programs