ARUHI

Basic Information

Stock Code
7198
Industry
Other Financial Services
Category Detail
Consumer & Business Finance
Prefecture
Tokyo
Establishment Year
May 2014
Listing Year
December 2017
Official Website
https://www.aruhi-group.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
JPMC, Landcom, SBI Global Asset Management, Asia Pile, Career Link, Fuji Dice, iMobile, Sumida Corporation, Tokyo Industries, Lirica

Overview

ARUHI is a housing loan specialist financial institution established in 2014, boasting the No.1 market share for 14 consecutive years in Flat 35 handling as an industry-leading company.

Current Situation

ARUHI maintains a solid financial position with consolidated net assets of approximately 42 billion yen and total assets of approximately 191.3 billion yen as of the fiscal year ended March 2024. Its main business is lending and agency services for housing loans, with a focus on multi-channel customer provision and over 100 stores nationwide. It holds the top domestic share for 14 consecutive years in the long-term fixed-rate Flat 35 product, building a stable revenue base. It actively expands services using AI and IT technologies, introduces electronic contracts, and develops housing-related web services to enhance customer convenience. Having rejoined the SBI Group, it pursues business growth leveraging group synergies while promoting sustainability through green housing loan-backed securities and other environmentally and socially conscious initiatives. Looking ahead, it aims to strengthen its position as a leading housing finance company and grow through diversification of housing-related financial services. In 2023, it expanded real estate-related services by collaborating with SBI Estate Finance, fully acquired as a subsidiary.

Trivia

Interesting Facts

  • Record holder for 14 consecutive years No.1 Flat 35 execution volume share
  • First financial institution in Japan to issue green housing loan-backed securities
  • Pioneer actively utilizing AI technology for housing loan fraud detection
  • Rare history of independence from SBI Group followed by rejoining
  • Operates approximately 100 stores nationwide with hybrid face-to-face and web sales
  • Provides AI neighborhood diagnostic service 'TownU' for customers
  • Holds history as Japan's first mortgage bank
  • Leads industry with early introduction of electronic contract services
  • Maintains high expertise as a lending-specialized mortgage bank
  • Offers diverse membership services for home purchase support
  • Advances real estate technology business through related subsidiaries
  • Strengthens community-focused services via regional bank collaborations
  • First in housing loans to introduce online prepayment service
  • Diversified capital structure through acquisition by Carlyle Group
  • Serves broad customer segments with diverse housing loan products

Hidden Connections

  • Contributes to strengthened linkage of group financial products as a wholly-owned subsidiary of SBI Holdings
  • Former ARUHI was Japan's first mortgage bank and pioneer of mortgage finance
  • Creates synergies in real estate finance domain through full acquisition of SBI Estate Finance
  • Unique housing loan specialist with listing experience on Korea Exchange (KOSPI)
  • Expands market share by handling diverse housing loan products through alliances with multiple net banks
  • Contributed to forming the foundation of Japan's housing loan market as a mortgage bank pioneer
  • Strong funding capabilities through capital alliances with investment funds and major financial groups
  • Aggressively introduces cutting-edge technologies like AI neighborhood diagnostics and RPA for efficiency

Future Outlook

Growth Drivers

  • High demand for full-term fixed-rate products in the housing loan market
  • Improved customer convenience and operational efficiency via IT and AI technologies
  • Leveraging capital power through strengthened SBI Group synergies
  • Growing green loan demand with increase in energy-efficient and eco-friendly homes
  • Customer base expansion through enhanced regional financial institution collaborations
  • Revenue diversification via diverse housing-related services
  • Increasing needs for long-term loan products considering demographic trends
  • Strengthened customer touchpoints accompanying online channel expansion
  • Maintaining competitive edge in low-interest financial market environment
  • Advanced credit investigations and risk management via AI technology
  • Growth potential in real estate technology-related business
  • Enhanced corporate value through sustainability initiatives

Strategic Goals

  • Further expansion and maintenance of housing loan market share
  • Green housing loan adoption ratio to over 50%
  • Achieve customer experience optimization via AI and digital technologies
  • 30% increase in sales from housing-related added-value services
  • Expand alliance network with regional financial institutions to over 80% nationwide
  • Promote diversity, inclusivity, and workstyle reforms for employees
  • Sustainable funding and improved ESG ratings
  • Expand business revenue in real estate technology domain
  • Achieve over 80% business process efficiency via RPA and automation
  • Develop 10 or more new services to improve customer satisfaction

Business Segments

Housing Loan Agency and Intermediation

Overview
Provides housing loan product agency and intermediation services to financial institutions and real estate operators.
Competitiveness
Diverse loan product lineup and nationwide network
Customers
  • Regional banks
  • Credit unions
  • Net banks
  • Real estate operators
  • Insurance agencies
Products
  • Flat 35 agency service
  • Variable rate loan intermediation
  • ARUHI brand loans
  • Housing loan system provision

Real Estate Related Services

Overview
Provides real estate transaction support services and business efficiency tools to support real estate businesses.
Competitiveness
Efficient business support via IT utilization and improved customer convenience
Customers
  • Home buyers
  • Real estate companies
  • Real estate management operators
Products
  • ARUHI Relocation Concierge
  • Property information search service
  • RPA Solutions

Financial Product Agency Business

Overview
Agencies insurance products from partner insurers to enrich loan incidental services.
Competitiveness
High cross-selling effect through linkage with housing loans
Customers
  • Insurance companies
  • Housing loan customers
Products
  • Housing loan incidental insurance
  • Life insurance agency

Competitive Advantage

Strengths

  • 14 consecutive years No.1 Flat 35 execution volume share
  • Multi-channel expansion utilizing AI and IT technologies
  • Strong collaboration with SBI Group
  • Nationwide network of approximately 100 face-to-face stores
  • Rich lineup of housing loan products
  • Stable financial base with high net assets
  • Rapid housing loan application processing
  • Expansion of housing-related services
  • Issuance of green housing loan-backed securities
  • Customer-oriented consulting system
  • Hybrid online-offline expansion
  • High brand recognition and trust
  • Integration of financial products and real estate services
  • Advanced risk management and fraud detection system
  • Product development focused on customer convenience

Competitive Advantages

  • Overwhelming share and track record in the housing loan market
  • Efficient service provision leveraging IT and AI
  • Stability from SBI Group's capital and technological support
  • Strengthened customer touchpoints via nationwide store network
  • Covers wide customer needs with diverse loan products
  • Linkage with insurance agency business tied to housing loans
  • Active promotion of digital transformation
  • Sustainable business expansion with eco-friendly products
  • Differentiation via real estate added-value services
  • Introduction of advanced housing loan fraud detection system
  • High-trust corporate brand in the financial industry
  • Improved customer satisfaction through simplified loan applications
  • Diversified funding via green bond issuance
  • Precise risk management utilizing customer data
  • Broad collaboration with diverse partner financial institutions

Threats

  • Risk of rising interest rates in the housing loan market
  • Increased operational burden from strengthened financial regulations
  • Intensified price competition from competitors
  • Shrinking housing finance demand due to population decline
  • Increased repayment delinquency risk in economic downturns
  • Cyberattack risks to financial IT systems
  • Service innovations by emerging fintech companies
  • Real estate market volatility risks
  • Materialization of customer credit risks
  • Changes in housing loan-related legal regulations
  • Role adjustments with competing businesses within SBI Group
  • Sudden changes in real estate value due to natural disasters

Innovations

2024: Launch of ARUHI Super 40 handling

Overview
Introduced housing loan product with maximum borrowing period of 40 years to expand customer options.
Impact
Captures long-term loan needs to strengthen market competitiveness.

2023: Full acquisition of SBI Estate Finance as subsidiary

Overview
Expanded business areas through strengthened collaboration in real estate-related operations.
Impact
Accelerates diversification of real estate financial services.

2021: Launch of AI-powered neighborhood diagnostic web service 'TownU'

Overview
Realizes neighborhood recommendations tailored to customer lifestyles using AI.
Impact
Enhances support for home purchase decision-making.

2020: Japan's first issuance of green housing loan-backed securities

Overview
Promotes securitization of loans for high energy-efficiency homes.
Impact
Pioneers environmentally conscious finance, enhancing corporate value.

2020: Launch of housing loan fraud detection system

Overview
Introduced AI-based fraud detection jointly developed with HEROZ.
Impact
Contributes to fraud risk reduction and operational efficiency.

2021: Start of housing loan business alliance with Kitadori Bank

Overview
Expands customer base through strengthened ties with regional financial institutions.
Impact
Diversifies sales channels through partnerships.

2020: Introduction of electronic contract service on web

Overview
Advances full online housing loan contract procedures.
Impact
Achieves convenience and speed in application processes.

2022: Conclusion of business alliance agreement with SBI Holdings

Overview
Advances integration in capital and operations through renewed group collaboration.
Impact
Strengthens management base and resource utilization.

2023: Enhancement of ARUHI Home Search web service

Overview
Improved search accuracy and convenience via data integration and AI utilization.
Impact
Boosts efficiency in acquiring home purchase prospects.

2021: Progress in RPA implementation on housing loan platform

Overview
Advances labor-saving in application processes through business automation.
Impact
Achieves improved processing speed and reduced human errors.

Sustainability

  • Promotion of green housing loans and expansion of environmentally conscious finance
  • Paperless promotion through electronic contract introduction
  • Strengthening ESG compliance in housing finance
  • Advanced fraud prevention and risk management via AI technology
  • Enhanced regional community support through local financial institution collaborations
  • Comfortable service provision across diverse customer touchpoints
  • Initiatives supporting home acquisition for women and younger generations
  • Support for non-profit housing-related activities and strengthened social contributions
  • Information dissemination toward forming a sustainable housing market
  • Development of inclusive housing finance products