Tokyo Kiraboshi Financial Group

Basic Information

Stock Code: 7173
Industry: Banking
Category Detail: Banks
Prefecture: Tokyo
Establishment Year: October 2014
Listing Year: October 2014
Official Website: https://www.tokyo-kiraboshifg.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Stanley, Mebuki Financial Group, Toyama Daiichi Bank, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Nanto Bank

Overview

Tokyo Kiraboshi Financial Group is the largest regional bank group based in Minato-ku, Tokyo, established in 2014, offering a wide range of financial services with a solid foundation through group management integration.

Current Situation

Tokyo Kiraboshi Financial Group recorded consolidated net profit of approximately ¥7.7 billion, net assets of approximately ¥294.5 billion, and total assets of approximately ¥5.5 trillion in the fiscal year ended March 2020. Its main subsidiary, Kiraboshi Bank, provides community-based financial services centered in Tokyo and ranks 6th in scale among regional banks in the Tokyo metropolitan area. In 2022, it acquired UI Bank, a digital-only bank, to strengthen its online banking business. The group is advancing capital strengthening and system integration through management integration, investing approximately ¥20 billion in IT to improve operational efficiency and customer services. It is also expanding funding and investment opportunities through a business alliance with Sumitomo Mitsui Trust Bank. Moving forward, it aims to build a sustainable management base, contribute to the local community, promote digital transformation (DX), and develop diverse financial solutions by 2030. It is actively addressing diverse customer needs through digitalization of regional finance and preferential housing loan programs. Steady growth is expected in the Tokyo financial market while differentiating from competitors.

Trivia

Interesting Facts

Established in 2014, a relatively new regional bank group
Largest regional bank group with head office in Tokyo
Sumitomo Mitsui Trust Bank as major shareholder strengthening capital ties
In addition to Kiraboshi Bank, established digital-only UI Bank in 2022
Invested over ¥20 billion in system integration for the group's three banks
Adopted Little Twin Stars as mascot characters
Focuses on supporting regional economy as a regional financial institution
Made Shin Tokyo Bank a wholly-owned subsidiary in April 2016
Advanced regional bank DX through stock exchange-based management integration
Holds Kiraboshi Life Design Securities as a wholly-owned subsidiary
Head office located in Minami-Aoyama, Minato-ku, Tokyo
Recently focusing on housing loan rate discounts and solar-related financing
Strong in loans to regional SMEs and provides credit guarantees
Responding broadly to financial needs in the capital region as a regional bank
UI Bank online bank expanding convenient services for individuals

Hidden Connections

Built strong ties with major trust bank through capital and business alliance with Sumitomo Mitsui Trust Bank
Maintains capital ties with Tokyo Metropolitan Government and strengthens collaboration with regional administration
Advanced financial reorganization in Tokyo area through management integration with Shin Tokyo Bank
Entering digital finance market via subsidiary UI Bank to expand market share
Enhanced affinity with local residents by adopting Little Twin Stars
Closely collaborates with economic media like Nikkei
Group employs approx. 2,700 people, comparable to major regional banks
Utilized NTT Data and NEC technologies for group system integration

Future Outlook

Growth Drivers

Stable growth demand in regional economy centered on capital region
Expansion of digital financial services and new customer acquisition
Increasing trend in housing loans and energy-related financing
Expansion of business succession and M&A support for SMEs
Operational efficiency improvements from IT system integration
Diversification of financial products and strengthened consulting
Promotion of sustainable finance considering society and environment
Enhanced collaboration with administration and regional groups for community contributions
Synergy creation through group collaboration
Expanded investment capacity from stable capital base
Flexible product development responding to customer needs
Human resource management including work-style reforms

Strategic Goals

Achieve advanced automation of all operations through DX
Expand digital-complete products and services
Lead coexistence with regional society and regional economic revitalization
Reach 30% of total sales from environmental financial products
Improve group employee diversity and strengthen training
Surpass 1 million customers for online bank UI Bank
Ensure safety through enhanced cybersecurity
1.5x increase in outstanding loans for regional SME support
Significant expansion of ESG investment products
Establish sustainable stable growth in group earnings

Business Segments

Corporate Lending and Funding Support

Overview

Supports regional companies' cash flow and strengthens their management base.

Competitiveness

Local financial expertise and credibility

Customers

Small and medium enterprises
Regional mid-sized companies
Large company subsidiaries
Real estate developers
Startups

Products

Capital investment loans
Working capital loans
Real estate collateral loans
Bill and letter of credit issuance
Guarantee services

Asset Management and Investment Trust Sales

Overview

Supports customers' asset building with diverse investment products.

Competitiveness

Community-based consulting capabilities

Customers

Individual investors
Corporate pension funds
Foundations
SME owners
Local governments

Products

Bond investment trusts
Equity investment trusts
Wrap accounts
Fund wraps
Pension asset management

Digital Financial Services

Overview

Delivers highly convenient financial services using cutting-edge technology.

Competitiveness

IT technology capabilities and flexible service design

Customers

Young individual customers
Online users
IT-related companies
Digital natives
IT startups

Products

UI Bank online accounts
Smartphone payment integration
API banking services
Digital loan services

Leasing and Credit Services

Overview

Provides a wide range of financial products to streamline asset management and funding.

Competitiveness

Broad financing services through group collaboration

Customers

Small and medium enterprises
Manufacturing
Construction
Sales agents
Sole proprietors

Products

Equipment leasing
Vehicle leasing
Credit card payment processing
Installment sales services

Credit Guarantee Operations

Overview

Credit guarantee services to facilitate lending and reduce risks.

Competitiveness

Strong trust relationships with local companies

Customers

Loan users
Small and medium enterprises
Business successors
New loan applicants

Products

Loan guarantees
Credit investigations
Financial consulting

Consulting and Management Support

Overview

Multifaceted management support for company growth and regional revitalization.

Competitiveness

Regional networks and expertise

Customers

Local governments
Local companies
Venture companies
Chambers of commerce

Products

Business strategy development
Business succession support
Funding advice
Business improvement consulting

Information Systems and IT Services

Overview

Advances group IT infrastructure development and security enhancement.

Competitiveness

Experience in system integration and skilled engineers

Customers

Group companies
External SMEs
Financial-related companies

Products

Financial system development and operation
IT security services
Digital transformation support

Asset Management and Trust Operations

Overview

Protects customers' wealth with advanced asset management expertise.

Competitiveness

Kiraboshi Group's credibility and experience

Customers

High-net-worth individuals
Corporate customers
Pension funds

Products

Trust administration
Asset management
Inheritance planning support

Overseas Business Support

Overview

Supports funding and risk management for overseas operations.

Competitiveness

Leveraging networks as a regional financial institution

Customers

Companies expanding overseas
Importers and exporters
International trade staff

Products

Trade finance
Remittance services
Overseas business consulting

Environmental and Energy-Saving Support

Overview

Provides financing for building a sustainable society.

Competitiveness

Community-based environmental support expertise

Customers

Local governments
Environmental companies
Small and medium enterprises

Products

Environmental financing
Energy-saving investment support
Environmental management consulting

Education and Regional Revitalization Support

Overview

Financial services and support activities for regional community revitalization.

Competitiveness

Deep involvement and trust in the local community

Customers

Local governments
Educational institutions
Regional organizations

Products

Financial education programs
Regional event support
Local industry revitalization support

Competitive Advantage

Strengths

Largest regional bank group in the capital region
Diverse financial services infrastructure
Strong community-based customer base
Efficiency gains from IT system integration
Capital and business alliance with Sumitomo Mitsui Trust Bank
Utilization of digital-only bank subsidiary
Rich experience in management integration
Broad lineup of financial products
High credit ratings
Deep understanding of regional economy
Comprehensive consulting framework
Stable funding capabilities
Abundant talent and expertise
Flexible customer response
Long-term management vision

Competitive Advantages

Large scale and reliability based in central Tokyo
High cost efficiency from unified management
Customer base expansion through collaboration with digital bank UI Bank
Robust regional company support and asset management services
Customer trust from advanced credit guarantees and lending schemes
Risk diversification through diversified group businesses
Stable management base backed by strong capital
Service improvements via advanced IT adoption
Ability to match financial products with regional needs
Development and utilization of abundant talent and experts
Accumulated credibility and track record in finance
Stable revenue base from diversified clients
Strong ties with regional communities
Flexible management through holding company structure
High customer satisfaction and trust

Threats

Prolonged low-interest environment
Intensifying competition from digitalization
Risk of regional economic stagnation
Entry of new online banks
Increased operating costs from stricter regulations
Impact of earthquakes and natural disasters
Rising credit risks
Macroeconomic fluctuations
Geopolitical instability
Rapid changes in customer needs
Heightened IT security risks
Declining operational efficiency from talent shortages

Innovations

2022: Strengthening Digital Finance with UI Bank Launch

Overview: Digital-only bank 'UI Bank,' established as a 100% subsidiary, launched retail online services.
Impact: Successfully attracted younger customers and increased online transactions

2020: Completion of Core Banking System Integration

Overview: Integrated systems of former Tokyo Minato Bank and Yachiyo Bank under Kiraboshi Bank, improving efficiency and customer convenience.
Impact: Achieved annual operating cost reductions and faster service delivery

2023: Efficiency in Loan Reviews Using AI

Overview: Introduced AI systems to improve speed and accuracy of loan approvals.
Impact: Reduced loan approval time by 30%

2021: Promotion of API Open Banking

Overview: Opened APIs for customer financial data integration to support new financial services.
Impact: Successfully strengthened partnerships with external financial services

2024: Development of Environmental Financing Products

Overview: Introduced new financing products for environmentally considerate businesses to enhance CSR activities.
Impact: Contributed to new customer acquisition and improved corporate image

2022: Housing Loan Rate Discount Campaign

Overview: Discounted loan rates for homes with solar power installations to promote adoption.
Impact: Contributed to increased housing loan usage

2023: Introduction of IT Environment for Remote Work

Overview: Implemented cloud-based IT tools company-wide to enable flexible working styles.
Impact: Achieved improved employee productivity and cost reductions

2021: Development of Regional Economic Analysis System

Overview: Developed system to analyze regional economic trends for SME support.
Impact: Enhanced optimal financial product recommendations to customers

2020: Launch of Online Securities Services

Overview: Kiraboshi Life Design Securities began investment trust sales both in-person and online.
Impact: Expanded customer base and increased trading volume

2023: Enhanced Mobile Payment Service Integration

Overview: Deepened integration with partnered mobile payment services to improve convenience.
Impact: Increased personal customer payment usage by 20%

Sustainability

Promotion of environmental financing for regional economic revitalization
Reduction of paper use and CO2 emissions through digitalization
Implementation of customer financial education programs
Efforts to increase female management ratio
Collaboration with local governments on disaster recovery
Building sustainable management structure and enhancing transparency
Strengthening employee health promotion measures
Promotion of regional culture and sports support programs
Recycling promotion and waste reduction activities
Talent development emphasizing diversity and inclusion