Shimane Bank

Basic Information

Stock Code
7150
Industry
Banking
Category Detail
Banks
Prefecture
Shimane Prefecture
Establishment Year
May 1915
Listing Year
March 2011
Official Website
https://www.shimagin.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyo Bank Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Tottori Bank, Fukushima Bank, Daito Bank

Overview

Shimane Bank, founded in 1915, operates primarily in Shimane Prefecture as a second regional bank, providing community-focused financial services and partnered with the SBI Group as a trusted local bank.

Current Situation

As of 2023, Shimane Bank maintains deposits of approximately 491.1 billion yen and loans outstanding of about 369.6 billion yen, continuing solid management. It operates 34 branches mainly in Shimane and Tottori Prefectures, offering tailored financial services to local businesses and individuals through a community-oriented approach. In recent years, it has formed capital and business alliances with SBI Regional Bank Holdings, focusing on digital transformation including the launch of its smartphone branch 'Shima Ho!'. By upgrading IT infrastructure and rolling out smartphone ATM services, it aims to enhance convenience and efficiency while actively supporting regional economic revitalization. In 2023, it introduced a cloud-based next-generation core banking system to strengthen its business foundation. Emphasizing social responsibility as a regional financial institution, it is equipped with facilities to accommodate people unable to return home during disasters. Moving forward, it seeks sustainable growth by balancing regional economic support with digital technology utilization.

Trivia

Interesting Facts

  • Mascot character 'Shimany' is based on a cat scooping loaches
  • Over 100 years of history as a second regional bank
  • Pioneered installation of Seven Bank ATMs supporting overseas cards in western Japan
  • Active in digitalization as the region's first smartphone ATM adopter
  • New head office building features quake-resistant structure and disaster supply stockpiles
  • Enhanced convenience through fee-free ATM alliance with Tottori Bank
  • Leading example of regional bank partnered with SBI Group
  • Founded as a mutual loan company
  • Rare nationwide employee stock ownership association
  • Actively participates in the Regional Banks Association over the long term
  • First regional bank to launch smartphone ATM service with Lawson Bank
  • Comprehensive online banking system operational since 1983
  • Safe deposit box services available 365 days a year at all branches
  • Operates 34 branches centered in Shimane and Tottori Prefectures
  • Approximately 308 employees, stable scale for a regional financial institution

Hidden Connections

  • Under SBI Regional Bank Holdings, collaborates with numerous regional banks
  • Improved ATM convenience through partnerships with Seven Bank and Lawson Bank
  • Utilizes credit guarantee network with Chugoku Sogo Shinyo for regional SME financing
  • Former name Matsue Sogo Ginko, origins trace back to Taisho 4 as a mutual loan company
  • Pioneering among regional banks in adopting cloud-based core systems
  • Actively provides financial support in regional revitalization and disaster prevention
  • Has service linkages with various SBI Group financial subsidiaries
  • Partners with Tottori Bank to enhance convenience for non-local customers

Future Outlook

Growth Drivers

  • Increased new customer acquisition through IT infrastructure strengthening via SBI partnership
  • Enhanced convenience from smartphone branches and ATMs
  • Expansion of loan demand through DX support for regional SMEs
  • Regional economic revitalization via local creation policies
  • Product development responsive to diversifying customer needs
  • Strengthened personal services strategy amid regional population decline
  • Diversified service expansion leveraging financial deregulation tailwinds
  • Growing demand for disaster prevention and environmental financial services
  • Business efficiency and cost reductions through digital technology utilization
  • Deepened collaborations with regional financial networks
  • Promotion of collaborations with emerging fintechs
  • Expansion of investment trusts and other asset management products

Strategic Goals

  • Complete DX based on cloud core banking system
  • Full digitalization of community-integrated financial services
  • Achieve over 5% annual growth rate in deposits and loans
  • Expand smartphone branch membership to 30% of regional population
  • Strengthen disaster prevention support infrastructure for the region and enrich CSR activities
  • Establish top-class position in industry for SME services
  • Improve efficiency of traditional branch services and strengthen new customer acquisition
  • Develop new financial products through collaboration with SBI Group
  • Foster corporate value by enhancing ESG ratings
  • Strengthen brand through improved trust among regional residents and businesses

Business Segments

SME Financial Support

Overview
Supports funding needs of local SMEs with diverse financing products, contributing to regional economic revitalization.
Competitiveness
Community-based creditworthiness and rapid review processes
Customers
  • Local SMEs
  • Agriculture, Forestry, and Fisheries Operators
  • Startups and Entrepreneurs
  • Sole Proprietors
  • Construction Companies
  • Retail Businesses
  • Manufacturing Companies
Products
  • Working Capital Loans
  • Equipment Investment Loans
  • Credit Guarantee Association-Backed Financing
  • Business Restructuring Support Loans
  • Startup Support Loans
  • Leasing and Finance
  • Credit Insurance Services

Asset Management Services

Overview
Provides specialized services tailored to customers' asset management needs, building trust.
Competitiveness
Long track record in the region and ample specialized staff
Customers
  • Local Corporations
  • Public Entities
  • Financial Institutions
  • Municipal-Related Organizations
  • School Corporations
  • Medical Corporations
Products
  • Fund Management Advice
  • Pension Fund Management
  • Corporate Pension Handling
  • Asset Management Consulting
  • Trust Services

System Provision and ATM Network

Overview
Delivers the latest financial IT services to the region, ensuring convenience and security.
Competitiveness
System innovation through strengthened ties with SBI Group
Customers
  • Regional Financial Institutions
  • Convenience Stores
  • Partner Banks
  • Consumers
Products
  • ATM Installation and Management Services
  • Smartphone ATM Services
  • Transaction System Implementation Support
  • Digital Banking Systems

Credit Guarantee Services

Overview
Collaborates with credit guarantee associations to support credit aspects of financing, contributing to regional industry promotion.
Competitiveness
Utilization of regional financial institution networks
Customers
  • SMEs
  • Sole Proprietors
  • Agriculture, Forestry, and Fisheries Operators
Products
  • Credit Guarantee Association Partnerships
  • Credit Guarantee-Backed Financing Support

Digital Financial Services

Overview
Deploys highly convenient services targeted at younger generations and digital natives.
Competitiveness
Industry-leading digital response environment
Customers
  • Individual Customers
  • Corporate Customers
  • Younger Demographics
Products
  • Smartphone Branch 'Shima Ho!'
  • Smartphone ATM Services
  • Online Payment Services
  • Digital Account Opening

Regional Contribution Support Services

Overview
Provides financial services in collaboration with the regional community to support revitalization.
Competitiveness
Trusted community relationships and ongoing partnerships
Customers
  • Local Governments
  • Regional NPOs
  • Regional Business Associations
Products
  • Regional Economic Support Funds
  • Disaster Prevention Support
  • CSR Collaboration Programs

Insurance Agency Business

Overview
Handles various insurances to support customers' risk management.
Competitiveness
Strong ties with SBI Group
Customers
  • Individuals
  • Corporations
Products
  • Life Insurance
  • Damage Insurance
  • Medical Insurance
  • Corporate Insurance

Leasing and Finance Services

Overview
Provides optimal leasing products for local businesses, supporting equipment investments.
Competitiveness
Proposal capabilities tailored to local realities
Customers
  • SMEs
  • Business Corporations
Products
  • Equipment Leasing
  • Vehicle Leasing
  • Finance Leasing

Regional Credit Guarantee Collaboration

Overview
Supports local businesses' working capital by promoting credit guarantee systems.
Competitiveness
Long-term collaboration track record with local financial institutions
Customers
  • Credit Guarantee Associations
  • Local Governments
Products
  • Guarantee-Backed Financing Cooperation
  • Credit Risk Reduction Support

Environmental and Disaster Prevention Financial Services

Overview
Provides financial support contributing to regional disaster prevention and environmental conservation, aiding safe community building.
Competitiveness
Rapid response capabilities during disasters
Customers
  • Local Governments
  • Disaster Prevention-Related Companies
  • Residents
Products
  • Disaster Prevention-Related Loans
  • Disaster Response Financing
  • Emergency Support Funds

Education and Training Support

Overview
Supports regional educational institutions financially to promote human resource development.
Competitiveness
Enduring community-based partnerships
Customers
  • Local School Corporations
  • Vocational Schools
  • Vocational Training Facilities
Products
  • Education Loans
  • Education Insurance Agency Sales
  • Vocational Training Fund Support

Fund Management and Payment Services

Overview
Offers various financial services to improve corporate fund management efficiency.
Competitiveness
Proposal strengths leveraging regional networks
Customers
  • Local Corporations
  • Public Institutions
Products
  • Payment Agency Services
  • Payroll Transfer Services
  • Payment Agency

Competitive Advantage

Strengths

  • Long-term brand trust rooted in the community
  • Capital and business alliance with SBI Group
  • Advanced digital banking infrastructure
  • Extensive local branch network
  • Solid foundation of loans and deposits
  • Active expansion of smartphone branches
  • Regional contribution through disaster response facilities
  • Services covering diverse customer segments
  • Excellent customer service and review speed
  • Specialized know-how in SME support
  • Improved customer convenience via ATM partnerships
  • Regionally specialized credit guarantee support
  • Stable funding capabilities
  • Utilization of regional financial institution networks
  • Flexible product development capabilities

Competitive Advantages

  • Enhanced competitiveness through SBI Group's IT and funding power
  • Accumulated creditworthiness and customer base rooted in the region
  • Pioneering introduction of smartphone ATM services
  • Solid financial base as a second regional bank
  • Diverse loan products specialized for regional SME support
  • Community-oriented services with facilities for stranded commuters during disasters
  • Broad partnerships enabling fund transfer networks
  • Unique solutions closely tied to local life and industry
  • Rapid loan reviews and personalized customer support
  • One-stop service provision through diverse financial products
  • Ongoing digital transformation initiatives
  • Strengthened credit guarantee system via local financial institution collaborations
  • Creditworthiness backed by stable capital and net assets
  • Improved efficiency and profitability through continuous DX investments
  • Active contributions to regional economic revitalization

Threats

  • Risk of local market contraction due to population decline
  • Intensifying competition among regional banks
  • Potential strengthening of regulations by the Financial Services Agency
  • Profit pressure from prolonged low-interest environment
  • Competitive disadvantage from delays in digitalization
  • Competition from new fintech entrants
  • Risks from local economic fluctuations
  • Damage to branches and assets from disasters
  • Loan losses from rising credit risks
  • Information security risks such as cyberattacks
  • Customer loss from delays in technological adaptation
  • Market share decline due to industry restructuring

Innovations

2023: Launch of Smartphone Branch 'Shima Ho!'

Overview
Opened smartphone branch to strengthen digital channels and improve convenience.
Impact
Expansion of younger customer base and promotion of online transactions

2023: Launch of Smartphone ATM Service (Seven-Eleven and Lawson Partnership)

Overview
First in the region to introduce smartphone-linked ATM transactions.
Impact
Improved customer satisfaction and increased fee income

2023: Adoption of Next-Generation Cloud Core Banking System Decided

Overview
Adopted SBI Regional Revitalization Banking System's cloud platform.
Impact
Reduced system operation costs and improved business efficiency

2022: Strengthened Partnership with SBI Group

Overview
Accelerated comprehensive financial services rollout through capital and business alliance.
Impact
Advancement of digital transformation

2021: Initiation of Regional Financial DX Strategy

Overview
Expanded services utilizing IT for regional SME support.
Impact
Improved loan review speed and customer convenience

2020: Outsourcing of Overseas Remittances to SBI Remit

Overview
Outsourced overseas remittance services to SBI Remit for efficiency.
Impact
Stabilized fee income and improved customer convenience

2020: Expansion of Online Consultation Services

Overview
Enabled online consultations in response to the novel coronavirus pandemic.
Impact
Maintained customer touchpoints amid reduced face-to-face interactions

Sustainability

  • Regional disaster prevention support through facilities for stranded commuters during disasters
  • Introduction of energy-efficient, quake-resistant new head office building
  • Strengthening of regional economic revitalization and SME support
  • Reduction of environmental impact through paperless and digitalization efforts
  • Promotion of CSR activities in collaboration with the regional community
  • Improvement of customer financial literacy via financial education seminars
  • Advancement of work-style reforms and diverse talent utilization
  • Ongoing support programs for regional NPOs and others
  • Initiation of clean energy investments
  • Promotion of sustainable finance products
  • Strict management of customer information and privacy protection
  • Development of financial services tailored to regional community needs