Zenkoku Hosho

Basic Information

Stock Code
7164
Industry
Other Financial Services
Category Detail
Consumer & Business Finance
Prefecture
Tokyo
Establishment Year
February 1981
Listing Year
December 2012
Official Website
https://www.zenkoku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hulic, Nippon Insure, Zenhōren, Anshin Hosho, J.Lease, Intrust, Casa, Mizuho Leasing, Ricoh Lease, e-Guarantee

Overview

Zenkoku Hosho is Japan's largest independent credit guarantee company, established in 1981. It partners with financial institutions nationwide, primarily providing guarantee services centered on housing loans.

Current Situation

Zenkoku Hosho recorded consolidated net sales of approximately ¥50.2 billion, ordinary income of approximately ¥41.4 billion, and net income of approximately ¥28.5 billion for the fiscal year ended March 2023. Its core housing loan guarantee business maintains extensive partnerships with regional banks, credit unions, and cooperative banks nationwide, boasting a stable outstanding guarantee debt of ¥15 trillion (as of 2021). In recent years, it has expanded into card loans, education loans, and apartment loans, promoting diversification. Through subsidiaries handling debt management and recovery, as well as the absorption and integration of affiliated credit guarantee companies, it is scaling up operations, with the entire group maintaining solid management. Differentiation from competitors lies in the creditworthiness of partners and the quality of guarantee services, with investments in credit risk management and advanced screening systems. It continues to expand market share through recent M&A and strengthened partnerships, while also advancing sustainability and DX initiatives. Leveraging its nationwide network, it aims to acquire customer bases and deepen guarantee operations going forward.

Trivia

Interesting Facts

  • Largest independent credit guarantee company in Japan.
  • Partners with financial institutions nationwide, excluding Okinawa Prefecture.
  • Outstanding guarantee debt exceeded ¥10 trillion in 2016 and ¥15 trillion in 2021.
  • Actively acquires shares in credit guarantee companies nationwide to promote business integration.
  • Representative listed credit guarantee company on the Tokyo Stock Exchange Prime Market.
  • Owns subsidiary specializing in debt recovery, providing comprehensive credit services.
  • Also handles card loan and education loan guarantees for customers.
  • Recognized as a contributor to reducing credit risk for financial institutions.
  • Website details business operations and customer services.
  • Head office located in Otemachi Nomura Building in Tokyo's financial district.
  • Capital of approximately ¥10.7 billion, with stable funding base.
  • Over 300 employees, with ample specialized staff.
  • Affiliated with Prime Market following Tokyo Stock Exchange market reorganization.
  • Group includes multiple credit guarantee and debt recovery companies.
  • Forming top market share in credit guarantee industry through partnerships and M&A.

Hidden Connections

  • Built strong ties with regional finance through capital and business alliance with Shikoku Sogo Shin'yo.
  • Expanded dominance in eastern Japan guarantee operations by acquiring subsidiary of Higashi Nippon Bank.
  • Debt recovery subsidiary operations expanding with increase in credit guarantee debt.
  • Multiple life insurance companies hold shares as major stable shareholders.
  • Tsukuba Credit Guarantee share acquisition functions as part of Kanto region market strategy.
  • Accelerated community-focused service strengthening by grouping credit guarantee companies nationwide.
  • Centered on housing loan guarantees, formed diversified product lineup.
  • Collaborates with Financial Services Agency's credit guarantee policies as industry leader.

Future Outlook

Growth Drivers

  • Expansion of support demand for increasing housing loans from regional banks and credit unions nationwide
  • Increase in diversified credit demand such as card loan and education loan guarantees
  • Efficiency and expansion through IT and AI utilization in credit guarantee services
  • Market share expansion and business integration via M&A and capital alliances
  • Expansion of community-focused guarantee services through strengthened regional financial institution partnerships
  • Increasing guarantee demand accompanying economic recovery and housing market rebound
  • Improvement in screening technology to reduce guarantee default risks
  • Strengthening of credit guarantee systems amid financial policy changes
  • Advancement and market expansion of debt recovery business
  • Promotion of ESG-focused management including environmental and social challenges
  • Business efficiency through expanded introduction of DX and digital tools
  • Development of new guarantee products responding to customer needs

Strategic Goals

  • Achieve outstanding guarantee debt of ¥30 trillion
  • Expand partner financial institutions to over 1,000 nationwide
  • Achieve over 80% AI utilization rate in guarantee operations
  • Establish group debt recovery sales over ¥10 billion
  • Build industry-leading compliance framework
  • Promote ESG management for sustainable growth
  • Maintain and improve customer satisfaction over 95%
  • Achieve annual sales of ¥20 billion for new guarantee products
  • Strengthen strategic partnerships with regional financial institutions
  • Improve employee engagement and promote diversity

Business Segments

Credit Guarantee Operations

Overview
Collaborates with financial institutions to provide diverse loan guarantees, contributing to credit risk reduction.
Competitiveness
Industry-leading outstanding guarantee debt and partnership network
Customers
  • Regional Banks
  • Credit Unions
  • Credit Cooperatives
  • Labor Credit Unions
  • Japan Housing Finance Agency
  • Local SMEs
  • Real Estate Companies
  • Loan Brokers
  • Educational Institutions
  • Card Loan Companies
Products
  • Housing Loan Guarantee
  • Card Loan Guarantee
  • Education Loan Guarantee
  • Apartment Loan Guarantee
  • Corporate Loan Guarantee
  • Credit Guarantee Services
  • Guarantee Debt Screening
  • Debt Guarantee Risk Management
  • Guarantee Contract Support
  • Guarantee Default Response

Debt Management and Recovery Business

Overview
Specializes in debt recovery, supporting customers' fund recovery and risk management.
Competitiveness
Nationwide debt recovery network and legal response capabilities
Customers
  • Financial Institutions
  • Consumer Finance
  • Leasing Companies
  • Construction Companies
  • SMEs
  • Local Governments
  • Educational Institutions
  • Real Estate Management Companies
  • Guarantee Debt Holders
  • Venture Companies
Products
  • Debt Management Services
  • Debt Recovery Services
  • Non-Performing Loan Processing
  • Credit Guarantee Securitization
  • Debt Transfer Support
  • Third-Party Debt Management
  • Risk Management
  • Credit Management Consulting
  • Legal Proceedings Agency

Credit Investigation and Screening System Development

Overview
Provides proprietary systems to support efficiency and accuracy in guarantee screening operations.
Competitiveness
Advanced screening technology and business integration systems
Customers
  • Guarantee Companies
  • Financial Institutions
  • Loan Companies
  • Guarantee Screening Staff
  • Consulting Companies
  • System Operators
  • Credit Information Agencies
  • Real Estate Companies
  • Education Loan Departments
  • Card Loan Staff
Products
  • Credit Evaluation System
  • Guarantee Screening Platform
  • Risk Evaluation Tools
  • Credit Management Software
  • Data Analysis Services
  • Online Application Management
  • AI Screening Support
  • Business Efficiency Tools

M&A and Capital Business Alliance Support

Overview
Assists Zenkoku Hosho Group's restructuring and partnerships to promote business expansion.
Competitiveness
Optimal M&A proposals based on industry knowledge
Customers
  • Financial Institutions
  • Guarantee Companies
  • Subsidiary Management
  • Investors
  • M&A Funds
  • Law Firms
  • Accounting Firms
  • Management Consultants
  • Risk Management Staff
  • Business Planning Departments
Products
  • Subsidiary Business Transfer
  • Stock Acquisition and Sale Support
  • Corporate Alliance Consulting
  • Management Integration Planning
  • Business Restructuring Support
  • Cross-Border Support
  • Risk Evaluation
  • Capital Policy Development

Consulting for Regional Financial Institutions

Overview
Provides planning for regional financial revitalization and customer support measures.
Competitiveness
Abundant track record in community-focused support
Customers
  • Regional Banks
  • Credit Unions
  • Credit Cooperatives
  • Local Governments
  • Economic Associations
  • Local SMEs
  • Financial Services Agency
  • Educational Institutions
  • Real Estate Related
  • Private Companies
Products
  • Credit Guarantee System Utilization Support
  • Regional Financial Risk Management
  • Lending Program Development
  • Business Viability Evaluation Support
  • Management Analysis Services

Guarantee-Related Training and Seminar Business

Overview
Plans and implements practical training and specialized seminars for financial institutions and guarantee companies.
Competitiveness
Curriculum development tailored to real-world operations
Customers
  • Partner Financial Institutions
  • Guarantee Company Staff
  • Loan Staff
  • Credit Investigation Staff
  • Executives
  • Consultants
  • Sales Staff
  • New Employee Training
  • Legal Staff
  • Risk Management Staff
Products
  • Guarantee Operations Training
  • Credit Investigation Skill-Up
  • Risk Management Training
  • Case Study Seminars
  • Online Courses

Microfinance Support Business

Overview
Provides guarantee services to support funding for small businesses.
Competitiveness
Community-focused services and flexible guarantee responses
Customers
  • Small and Micro Enterprises
  • Entrepreneurs
  • Local Governments
  • Public Interest Corporations
  • NPOs
  • Financial Institutions
  • Educational Institutions
  • Economic Associations
  • Agricultural Cooperatives
  • Consumer Finance
Products
  • Small-Scale Guarantee Services
  • Startup Financing Guarantee
  • Regional Revitalization Guarantee
  • Financial Inclusion Support
  • Fundraising Consulting

Customer Credit Information Management Services

Overview
Manages customer credit information, contributing to risk reduction.
Competitiveness
Specialized information collection for credit guarantees
Customers
  • Financial Institutions
  • Guarantee Companies
  • Leasing Companies
  • Real Estate Companies
  • Consumer Finance
  • Card Companies
  • Insurance Companies
  • Medical Institutions
  • Educational Institutions
  • IT Companies
Products
  • Credit Information Collection
  • Credit Evaluation Reports
  • Debt History Management
  • Credit Risk Analysis
  • Customer Information Updates

IT and System Support Services

Overview
Provides IT systems and operational support for the group and customers.
Competitiveness
Financial industry-specialized IT operations know-how
Customers
  • Zenkoku Hosho Group
  • Partner Financial Institutions
  • Subsidiaries
  • Financial System Operators
  • Call Centers
  • Sales Staff
  • Screening Staff
  • Technology Vendors
  • Management
  • External Partners
Products
  • Guarantee Operations System Maintenance
  • Database Management
  • Network Operations
  • Security Measures
  • System Improvement Proposals

Risk Management and Compliance Support

Overview
Implements risk management and legal compliance support services for guarantee operations.
Competitiveness
Response capabilities through industry knowledge and legal collaboration
Customers
  • Financial Institutions
  • Guarantee Companies
  • Management Departments
  • Audit Departments
  • Legal Departments
  • Risk Management Staff
  • Third-Party Auditors
  • Compliance Staff
  • Business Planning
  • Investors
Products
  • Guarantee Risk Evaluation
  • Legal Compliance Support
  • Risk Response Planning
  • Audit Countermeasure Advice
  • Training Programs

Market Research and Information Services

Overview
Provides trends and market information on the credit guarantee industry to support management decisions.
Competitiveness
Long-term data accumulation and analysis capabilities
Customers
  • Financial Institutions
  • Guarantee Companies
  • Business Planning Departments
  • Investors
  • Consultants
  • Government Agencies
  • Think Tanks
  • Research Institutions
  • Industry Associations
  • Venture Companies
Products
  • Guarantee Market Analysis
  • Credit Trends Reports
  • Industry Trend Surveys
  • Customer Needs Surveys
  • Risk Evaluation Materials

Financial Product Development Support Services

Overview
Business supporting credit guarantee design and risk evaluation for new financial products.
Competitiveness
Flexible design aligned with market needs
Customers
  • Financial Institutions
  • Life Insurance Companies
  • Non-Life Insurance Companies
  • Guarantee Companies
  • Financial Product Planning
  • Risk Management Staff
  • Legal Departments
  • Marketing Departments
  • Sales Channels
  • Customer Service Staff
Products
  • Guarantee Product Planning Support
  • Guarantee Risk Surveys
  • Product Design Support
  • Sales Management Support
  • Customer Analysis

Competitive Advantage

Strengths

  • Largest independent credit guarantee company
  • Extensive partnership network with financial institutions nationwide
  • Diverse guarantee product lineup
  • Advanced risk management capabilities
  • Solid financial base and stable earnings
  • Group structure including subsidiaries
  • Reliable credit investigation systems
  • Long track record of operations
  • Strong customer support system
  • Rapid screening capabilities
  • Nationwide sales network
  • Utilization of latest IT infrastructure
  • Emphasis on legal compliance and governance
  • Flexible product development capabilities
  • Business expansion through M&A

Competitive Advantages

  • Overwhelming market share through partnerships with regional banks and credit unions nationwide
  • Responsive to customer needs with diverse guarantee loan products
  • Proprietary screening system specialized in risk control
  • Comprehensive services including debt recovery via group subsidiaries
  • Stable management base and continuous profit growth
  • High credibility based on abundant industry knowledge and long track record
  • Efficiency improvements in guarantee operations through latest technology
  • Rapid and appropriate guarantee screening processes
  • Advanced compliance framework
  • Customer-centric services via nationwide branch network
  • Risk diversification through multifaceted business expansion
  • Market expansion led by proactive M&A strategy
  • Flexibility to adapt to changes in the financial industry
  • Comprehensive products meeting diverse customer credit needs
  • Provision of value-added services beyond credit guarantees

Threats

  • Risk of fluctuating guarantee demand due to interest rate changes in financial markets
  • Intensifying price competition with rival guarantee companies
  • Potential for loss expansion due to increased credit risk
  • Changes in business environment from regulatory strengthening or legal amendments
  • Changes in partners due to consolidation and restructuring of regional banks
  • Risk of loan recovery difficulties amid economic downturn
  • Competition from service innovations by emerging fintech companies
  • Increase in debt defaults due to natural disasters or pandemics
  • Risk of system vulnerabilities in credit information management
  • Pressure from rising costs in guarantee operations
  • Risk of reputational damage from security incidents
  • Risk of delayed responses to diversifying customer needs

Innovations

2023: Subsidiary Acquisition of Higashi Nippon Guarantee Service

Overview
Acquired shares in Higashi Nippon Guarantee Service, a subsidiary of Higashi Nippon Bank, to expand guarantee services regionally.
Impact
Contributes to market share expansion in the eastern Japan region

2022: Capital and Business Alliance with Shikoku Sogo Shin'yo

Overview
Established mutual support system through strengthened credit guarantees and business partnerships in the Shikoku region.
Impact
Strengthens guarantee business in Shikoku and builds stable revenue base

2021: Share Acquisition in Tsukuba Credit Guarantee Co., Ltd.

Overview
Acquired shares in Tsukuba Bank subsidiary to promote diversification of credit guarantee operations and strengthen business base.
Impact
Successfully expanded and strengthened operations in the Kanto area

2020: Share Acquisition in Minori Credit Guarantee Co., Ltd.

Overview
Acquired shares in Higashiwa Credit Guarantee Co., Ltd. and made it a consolidated subsidiary.
Impact
Expands scope of guarantee business and stabilizes revenue base

2020: DX Promotion for Screening Operation Efficiency

Overview
Utilized AI and digital technology to achieve faster and more accurate credit guarantee screening.
Impact
Screening speed improved by over 20%, achieving cost reductions

2023: Introduction of AI Automatic Screening System in Credit Guarantee Field

Overview
Strengthened AI-based credit risk analysis to improve loan screening accuracy.
Impact
Enhanced early detection of non-performing loans

2024: Expansion of Online Guarantee Application Platform

Overview
Improved customer convenience by online-izing guarantee applications via web.
Impact
Application volume increased by 30%, improving customer satisfaction

2022: Promotion of Paperless Operations in Guarantee Services

Overview
Advanced digitization of guarantee-related documents for operational efficiency and environmental measures.
Impact
Reduced annual paper usage by 300,000 sheets, shortened business time by 20%

2021: Renewal of Guarantee Debt Risk Management System

Overview
Updated risk management system to achieve rapid and advanced risk evaluation framework.
Impact
Significantly improved credit risk response capabilities

2023: Expansion of Operations at Subsidiary Akebono Debt Recovery

Overview
Focused on strengthening debt recovery framework and developing new customers.
Impact
Improved recovery rate and successfully entered new markets

Sustainability

  • Environmental burden reduction through paperless promotion
  • Active CSR activities through strengthened community collaboration
  • Ongoing personal information protection and security enhancements
  • Promotion of internal diversity and work-style reforms
  • Establishment of guarantee standards considering environmental and social risks
  • Introduction of ESG evaluations in supply chain
  • Regional economic revitalization through support for regional financial institutions
  • Thorough prevention of financial crimes and compliance
  • Implementation of employee health management programs
  • Preparation of disaster response framework and rapid support