Jimoto Holdings

Basic Information

Stock Code
7161
Industry
Banking
Category Detail
Banks
Prefecture
Miyagi Prefecture
Establishment Year
October 2012
Listing Year
October 2012
Official Website
https://www.jimoto-hd.co.jp/
TSE Information
TSE Information
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Overview

Jimoto Holdings is a financial holding company in the banking industry established in 2012, integrating Sendai Bank and Kirayaka Bank primarily in Miyagi Prefecture to deliver regionally focused services.

Current Situation

Jimoto Holdings is headquartered in Sendai City, Miyagi Prefecture, and was established through the management integration of Sendai Bank and Kirayaka Bank, whose head office is in Yamagata Prefecture. In its 2021 financial results, it had consolidated net assets of approximately 116.4 billion yen and total assets of approximately 2.6639 trillion yen, providing highly transparent financial services. While facing challenges with public fund repayment, it strengthened its management foundation through a capital and business alliance with the SBI Group. In recent years, it has undertaken IT system renewal and established a core business support strategy division to expand syndicated lending and consulting services. It is expected to come under national management in 2024, but aims to provide sustainable regional finance, introducing Japan's first shared use of SBI Group's ATM system nationwide to improve services for local customers. Amid ongoing reviews of its management structure, it is pursuing strategies for financial soundness, business diversification, and contributing to regional revitalization.

Trivia

Interesting Facts

  • Jimoto Holdings was established after being delayed due to the Great East Japan Earthquake.
  • The largest shareholder is the Resolution and Collection Corporation, a government-related entity with controlling voting rights.
  • Introduced Japan's first nationwide shared ATM service through alliance with SBI Group.
  • Rare regional bank holding company with diversified financial services like Kirayaka Leasing and Kirayaka Card.
  • Strengthening in-house IT services through acquisition of JimoTec.
  • Pioneer in cross-prefecture management integration of two second-tier regional banks in Tohoku.
  • Placed under de facto national management due to difficulties in public fund repayment.
  • Established dedicated core business support strategy division to strengthen consulting.
  • Actively promotes syndicated lending in the regional bank sector, focusing on regional company support.
  • Audited by EY ShinNihon LLC for transparency assurance.
  • Issues preferred stock, posing challenges to management stability.
  • Demonstrates presence in the regional financial market of Miyagi and Yamagata.
  • Regional major financial group with approximately 1,700 employees.
  • Expands multifaceted financial services through multiple affiliates.
  • Hiring certified public accountants and other specialists as part of compliance strengthening.

Hidden Connections

  • Resolution and Collection Corporation is the de facto parent company with history of public fund injection.
  • Strengthened capital base via third-party allotment to SBI Regional Bank Holdings.
  • Integrated core banking system into NTT Data joint center for business efficiency.
  • Introduced Japan's first shared ATM service provided by SBI Regional Revitalization Banking System.
  • JimoTec was previously a Fujitsu affiliate but has been made a wholly-owned subsidiary.
  • Integrates multiple second-tier regional banks in Tohoku, such as Kirayaka Bank and Sendai Bank.
  • National capital participation under Financial Functions Strengthening Law significantly impacts management.
  • Strengthened consulting for regional companies via establishment of core business support strategy division.

Future Outlook

Growth Drivers

  • Business efficiency through digital collaboration with SBI Group
  • Recovery of financial demand from regional economic revival
  • Customer base expansion via strengthened syndicated lending and consulting
  • Improved convenience from nationwide ATM service standardization
  • Synergy effects from integration of regional banks across multiple areas
  • Customer service innovation through IT system renewal
  • New lending expansion from increased financial support for SMEs
  • Development of decarbonization and environmentally considerate products for the region
  • Strengthened linkage between regional finance and social contributions
  • Competitive strengthening through specialist hiring

Strategic Goals

  • Achieve full repayment of public funds and management independence
  • Full rollout of digital financial services
  • Expansion and diversification of regionally focused financial services
  • Further promotion of regional bank management integrations
  • Building foundations for sustainable regional economy
  • Realization of ESG-focused management
  • Completion of business reforms leveraging advanced IT technologies
  • Enhancement of support system for regional company growth
  • Innovation in financial product lineup and improved customer satisfaction
  • Ongoing talent development and workstyle reforms

Business Segments

System Outsourcing for Regional Banks

Overview
Provides system operations and outsourcing for regional financial institutions.
Competitiveness
Reliable IT support specialized for regional needs
Customers
  • Regional financial institutions
  • Regional banks
  • Credit unions
  • Shinkin banks
  • Financial outsourcing providers
Products
  • System operation services
  • Software development
  • Data center services
  • Cloud services
  • System maintenance management

Syndicated Lending Support

Overview
Support services for syndicated lending aimed at regional economic revitalization.
Competitiveness
Network-building capabilities among regional financial institutions
Customers
  • SMEs
  • Local governments
  • Regional chambers of commerce
  • Regional financial institutions
  • Venture companies
Products
  • Syndicated lending programs
  • Funding consultation
  • Credit provision support
  • Guarantee and collateral setup support
  • Risk management services

Financial Consulting Services

Overview
Consulting services provided by experts in finance and management.
Competitiveness
Securing highly skilled talent through specialist recruitment
Customers
  • Local governments
  • SME owners
  • Financial institution staff
  • Investors
  • Internal audit personnel
Products
  • Financial analysis
  • Business improvement proposals
  • Asset management advice
  • Risk management
  • Training programs

Leasing-Related Services

Overview
Services supporting equipment introduction through leasing.
Competitiveness
Flexible contract responses tailored to regional needs
Customers
  • SMEs
  • Local construction companies
  • Manufacturers
  • Service businesses
  • Agricultural corporations
Products
  • Equipment leasing
  • Vehicle leasing
  • OA equipment leasing
  • IT equipment leasing
  • Consulting

Card and Credit Services Business

Overview
Operates credit card settlement-centered credit business.
Competitiveness
Membership base leveraging regional bank networks
Customers
  • Individual customers
  • SMEs
  • Merchant affiliates
  • Distributors
  • Service providers
Products
  • Credit card issuance
  • Points services
  • Shopping loans
  • Merchant settlement services
  • Customer management

Regional Financial Information Services

Overview
Collection and provision of financial information centered on the Tohoku region.
Competitiveness
Information network closely tied to the regional economy
Customers
  • Financial institutions
  • Research organizations
  • Government agencies
  • Investors
  • Regional companies
Products
  • Economic trend analysis
  • Credit rating information
  • Market data provision
  • Risk assessment reports
  • Policy recommendation materials

ATM Service Operations

Overview
Operates Japan's first nationwide shared ATM service provided by SBI.
Competitiveness
Introduction and management of the latest ATM network
Customers
  • Regional bank groups
  • Convenience store chains
  • Public facilities
  • Commercial facilities
  • Local governments
Products
  • Shared ATM services
  • ATM installation and maintenance
  • Deposit and withdrawal management
  • System integration
  • Customer support

Real Estate and Asset Management Business

Overview
Manages and operates the group's real estate and assets.
Competitiveness
Regional-focused asset management expertise
Customers
  • Group companies
  • SMEs
  • Individual asset owners
  • Government agencies
  • Investors
Products
  • Real estate management
  • Asset management
  • Consulting
  • Leasing management
  • Asset valuation

Regional Revitalization Support Business

Overview
Implements diverse support initiatives to revitalize the regional economy.
Competitiveness
Collaboration with diverse stakeholders
Customers
  • Local governments
  • SMEs
  • NPOs
  • Chambers of commerce
  • Regional organizations
Products
  • Regional revitalization projects
  • Funding support
  • Industry promotion consulting
  • Event planning
  • Marketing support

Education and Training Business

Overview
Training services aimed at developing regional financial experts.
Competitiveness
High-quality training through hiring certified public accountants and other specialists
Customers
  • Financial institution staff
  • Corporate training personnel
  • Regional companies
  • Public servants
  • Specialists
Products
  • Financial knowledge training
  • Management training
  • IT skills training
  • Compliance education
  • Career support

Risk Management and Audit Support

Overview
Supports strengthening the group's risk management framework.
Competitiveness
Utilization of know-how from audit and supervisory committee installation companies
Customers
  • Group financial institutions
  • Local governments
  • Public organizations
  • Corporate risk personnel
  • Internal audit organizations
Products
  • Internal audit support
  • Risk assessment surveys
  • Compliance audits
  • Risk mitigation proposals
  • Monitoring systems

Competitive Advantage

Strengths

  • Regionally focused financial services
  • Scale expansion through management integration of Sendai Bank and Kirayaka Bank
  • Capital and business alliance with SBI Group
  • Introduction of advanced IT systems
  • Strengthened consulting functions
  • Wide lineup of financial products
  • Deep understanding of regional economy
  • Stable funding capabilities
  • Abundant customer base
  • Experience utilizing public funds
  • Talent strengthening through specialist hiring
  • Introduction of Japan's first nationwide shared ATM service
  • Strong ties with regional companies
  • Flexible lending programs
  • Synergy effects from management integration

Competitive Advantages

  • Strong presence in Miyagi and Yamagata areas as a regional financial group
  • Leverages advanced IT infrastructure through alliance with SBI Holdings
  • Capable of regionally focused lending support such as syndicated loans
  • Advances group optimization through holding company structure
  • One-stop provision of diverse financial services
  • Regional responsiveness and trust not found in net banks
  • Solid asset base centered on local customers
  • Corporate support strength through group-wide consulting
  • Risk diversification through alliances among regional banks
  • Financial stabilization base from accepting public funds
  • Improved customer convenience via latest shared ATM service
  • Efficiency and cost reductions through integrated information processing systems
  • Sound management governance via experienced executives and audit system
  • Diverse loan products meeting needs across industries and sizes
  • Trust building through two-way collaboration with regional society

Threats

  • Credit risk from delayed public fund repayment
  • Impact of population decline and stagnant regional economy
  • Intensifying competition with major city banks and net banks
  • Business constraints from financial regulations and legal amendments
  • Natural disaster risks in regional economy
  • Profit pressure from prolonged low-interest environment
  • IT system failures and cyberattack risks
  • Decline in competitiveness from delayed digital response to customers
  • Reduced management stability from preferred stock voting rights issues
  • Compliance risks from credit information leaks
  • Delay in escaping dependence on public funds
  • Market share loss from competition with regional banks in other areas

Innovations

2024: Japan's First Nationwide Introduction of SBI Group Shared ATM Service

Overview
Introduced the latest ATM network via SBI Regional Revitalization Banking System to enhance customer convenience.
Impact
Achieved improved ATM services across 292 units nationwide through ATM replacement.

2024: Full Subsidiary Acquisition of JimoTec to Strengthen System Development

Overview
Acquired Fujitsu-held shares to bolster development and operation of information systems for regional finance.
Impact
Advanced IT infrastructure and improved operational efficiency.

2023: Promotion of Syndicated Lending via Core Business Support Strategy Division

Overview
Expanded lending schemes to support regional companies and strengthen contributions to regional economic revitalization.
Impact
Number of deals closed increased 1.7 times.

2020: Capital and Business Alliance with SBI Regional Bank Holdings

Overview
Advanced digitalization and business efficiency through capital alliance, jointly developing diverse financial services.
Impact
Became largest shareholder, stabilizing management base.

2021: Completion of Core Banking System Replacement to NTT Data Joint System

Overview
Integrated systems of Sendai Bank and Kirayaka Bank to improve operational efficiency and security.
Impact
Achieved operational cost reductions and enhanced system reliability.

Sustainability

  • Disaster recovery support activities in collaboration with regional communities
  • Promotion of energy-efficient ATM equipment introduction
  • Development of environmentally considerate lending products
  • Support for promoting equality in regional companies
  • Workstyle reforms and diversity promotion for employees
  • Implementation of regional education support programs
  • Regional revitalization through growth support for local SMEs
  • Sincere response to public fund repayment
  • Strengthened customer information protection and operational safety
  • Regular reviews of risk management framework