Hirogin Holdings

Basic Information

Stock Code
7337
Industry
Banking
Category Detail
Banks
Prefecture
Hiroshima Prefecture
Establishment Year
October 2020
Listing Year
October 2020
Official Website
https://www.hirogin-hd.co.jp/
TSE Information
TSE Information
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Overview

Hirogin Holdings is a regional financial holding company in Hiroshima Prefecture, established in 2020, with Hiroshima Bank as its core subsidiary and multiple financial companies under its umbrella.

Current Situation

Hirogin Holdings was established in October 2020 through a sole share transfer from Hiroshima Bank, forming a financial holding company. The group operates banking services in Hiroshima Prefecture as well as Okayama Prefecture, Ehime Prefecture, Yamaguchi Prefecture, and other areas, expanding into securities, credit guarantees, leasing, investment business, IT solutions, and more. As of 2022, the consolidated number of employees is approximately 3,478, with a focus on providing regionally rooted financial services. In recent years, it has actively addressed regional challenges through in-house business contests, personnel system reforms, special financing, and consultation desks. Centered on its main subsidiary Hiroshima Bank, it has built a solid management base with regionally attuned strategies, while continuing subsidiary reorganizations and investments in new services and businesses. With the mission of supporting the sustainable development of the regional economy, it plans to strengthen wide-area operations and develop innovative services going forward.

Trivia

Interesting Facts

  • Established in 2020 as a new financial holding company centered on Hiroshima Bank.
  • Operates credit card and credit guarantee subsidiaries within the group in an integrated manner.
  • Listed on the Tokyo Stock Exchange Prime Market, maintaining high transparency.
  • Multi-faceted management that is regionally rooted while also engaging in IT solutions business.
  • Features real estate investment business managing the Hiroshima Regional Revitalization REIT Investment Corporation.
  • Maintains a strong financial service network in the Chugoku region centered on Hiroshima Prefecture.
  • Maintains a group structure with approximately 3,478 employees.
  • Began in-house business contests in 2023 to promote innovation.
  • Revamped personnel system after 23 years, moving away from seniority.
  • Major shareholders include trust banks and life insurance companies.

Hidden Connections

  • Unique integration of regional credit guarantees and credit card services through Hiroshima Bank subsidiaries.
  • Business development on dual axes of regional economic support and IT technology introduction, fusing finance and IT.
  • Strong ties within the financial industry supported by major insurance companies and trust banks as principal shareholders.
  • Links credit guarantee and leasing operations for SMEs to provide comprehensive support.
  • Contributes to regional real estate revitalization through management of Hiroshima Regional Revitalization REIT Investment Corporation.
  • High trust as a regional financial institution despite being regionally limited, listed on Tokyo Prime Market.
  • Built diverse group company structure enabling one-stop provision of wide-ranging financial services.
  • Introduced new system in 2023 reforms to promote employee innovation and enhance competitiveness.

Future Outlook

Growth Drivers

  • Expansion of financial demand from stable regional economic growth
  • Promotion of digital banking leveraging IT technology
  • Increase in credit sales through strengthened regional SME support
  • Diversification of financial services and creation of new businesses
  • Expansion of ESG and sustainability-focused finance
  • Enhanced provision of flexible services tailored to customer needs
  • Sophistication of customer marketing through data analysis
  • Business area expansion beyond Hiroshima Prefecture
  • Development and utilization of human resources rooted in the regional economy
  • New product development leveraging financial deregulation
  • Improved early response capabilities to risks like COVID-19
  • Enhanced competitiveness through maximization of group synergies

Strategic Goals

  • Establish leadership in the regional financial market
  • Full-scale promotion of digital transformation
  • Expansion of sustainable financial products and services
  • Development of services responding to diverse customer needs
  • Strengthened contributions to regional society based on ESG management
  • Strengthening of group-wide revenue base and stable growth
  • Strategic deployment balancing regional economy and environment
  • Building of human resource development system rooted in the region
  • Efficiency improvement through active adoption of latest IT technologies
  • Business area expansion through collaboration with diverse industries

Business Segments

Corporate Lending and Business Support

Overview
Provides lending and credit guarantees tailored to diverse funding needs of regional corporate clients.
Competitiveness
Rapid screening and flexible response rooted in regional proximity
Customers
  • SMEs
  • Local Companies
  • Venture Companies
  • Medical Corporations
  • Public Interest Corporations
  • Educational Corporations
Products
  • Equipment Finance
  • Working Capital Finance
  • Credit Guarantees
  • Lease Finance
  • Bill Discounting

Asset Management and Securities Services

Overview
Proposes diverse asset management options to a wide range of clients.
Competitiveness
Trust and expertise as a regional financial institution
Customers
  • High-Net-Worth Individuals
  • Corporate Pension Funds
  • Local Governments
  • Mid-Sized Companies
Products
  • Stock Trading
  • Investment Trusts
  • REIT Management
  • Bond Investments
  • Asset Management

Credit Guarantee Services

Overview
Supports SME lending by enhancing creditworthiness.
Competitiveness
Comprehensive guarantee support system of the Hiroshima Bank Group
Customers
  • SMEs
  • Startups
  • Sole Proprietors
Products
  • Credit Guarantee Operations
  • Lending Support
  • Risk Management

Leasing and Finance

Overview
Supports corporate asset efficiency with diverse leasing products.
Competitiveness
Proposal strength tailored to regional industries and flexible planning
Customers
  • Manufacturing
  • Transportation
  • Medical Institutions
  • Construction
  • IT Companies
Products
  • Equipment Leasing
  • Auto Leasing
  • Funding Consulting

IT Solution Provision

Overview
Promotes business efficiency and security enhancement with IT services for financial institutions.
Competitiveness
Customization leveraging financial expertise
Customers
  • Regional Banks
  • Government Offices
  • SMEs
  • Venture Companies
Products
  • System Development
  • Network Construction
  • Security Measures

Consulting Business

Overview
Supports sustainable development of regional society and companies.
Competitiveness
Multi-faceted support system rooted in the region
Customers
  • Local Companies
  • Local Governments
  • Non-Profit Organizations
Products
  • Management Consulting
  • Regional Revitalization Support
  • Human Resource Development Programs

Debt Management and Collection

Overview
Achieves proper debt management and efficient collection.
Competitiveness
Abundant track record and legal collaboration system
Customers
  • Financial Institutions
  • Companies
  • Local Governments
Products
  • Debt Management
  • Debt Adjustment Support
  • Collection Agency Services

Regional Real Estate Fund Management

Overview
Implements fund management balancing regional economic revitalization and stable returns.
Competitiveness
Regional asset management know-how
Customers
  • Individual Investors
  • Corporate Investors
  • Local Governments
Products
  • Real Estate Investment Trust (REIT) Management
  • Asset Management

Card Services Provision

Overview
Provides highly convenient payment services to the region.
Competitiveness
Extensive network of the Hiroshima Bank Group
Customers
  • Individual Customers
  • Corporate Customers
Products
  • Credit Card Issuance
  • Merchant Support
  • Points Program

Staffing and Training Services

Overview
Supports corporate growth with high-quality human resources services.
Competitiveness
Flexible staffing tailored to the region
Customers
  • Group Companies
  • Local Companies
  • Public Institutions
Products
  • Staff Dispatch
  • Human Resource Training
  • Labor Consulting

Environment and Regional Revitalization Support

Overview
Deploys multifaceted support for sustainable regional development.
Competitiveness
Long-standing regional partnerships and trust
Customers
  • Local Governments
  • Non-Profit Organizations
Products
  • Regional Consulting
  • Environmental Protection Programs

Insurance-Related Services

Overview
Offers diverse insurance products through group companies and partners.
Competitiveness
Wide product lineup and regional trust
Customers
  • Individual Customers
  • Corporate Customers
Products
  • Life Insurance Agency Operations
  • Property and Casualty Insurance Agency

Competitive Advantage

Strengths

  • Deep understanding of and strong ties to the regional economy
  • Group structure providing diverse financial services
  • Rapid and flexible decision-making rooted in the region
  • Stable customer base and high trust
  • Expertise across a wide range of business fields
  • Transparency and credibility from Tokyo Stock Exchange Prime listing
  • Active introduction of IT solutions
  • Robust human resource development and organizational reform
  • Focus on long-term regional contributions
  • Synergy effects from comprehensive financial services
  • Strengths in credit guarantees and credit card business
  • Know-how in REIT operations
  • Flexible product development and customer response
  • Management transparency and governance
  • Diverse sales channels and customer touchpoints

Competitive Advantages

  • Superior position against competitors due to robust regional financial network centered on Hiroshima Bank
  • One-stop service possible with multi-faceted businesses including securities, credit guarantees, leasing, and IT within the group
  • Gains regional trust with customer-close services leveraging regional economic understanding
  • Agile management decisions enabled by the new holding company structure established in 2020
  • Possesses advanced IT solution development capabilities for a regional bank
  • Sustainable growth strategy emphasizing regional issue resolution and human resource development
  • Funding and brand strength from Tokyo Prime Market listing
  • Revenue expansion through business collaboration among diverse subsidiaries
  • Enhanced SME support via strengthened credit guarantees and card services
  • New revenue sources from expanded REIT and real estate businesses
  • Competitive edge boosted by flexible personnel system reforms rooted in the region
  • Swift response to overseas trends like U.S. tariff policies
  • Expanded special financing and consultation for regional SMEs
  • Successful strengthening of customer touchpoints across wide sales channels
  • Plays a vital role as a regional financial institution

Threats

  • Risk of customer outflow due to intensifying competition with major city banks
  • Market shrinkage from regional population decline and aging
  • Profit pressure from negative interest rate policies
  • Increasing IT cybersecurity risks
  • Potential business constraints from strengthened financial regulations
  • Destabilization of regional companies due to COVID-19 and similar events
  • Pressure from competitors' service sophistication
  • Expanding impacts from global economy and tariff issues
  • Risk of delayed response to diversifying customer financial needs
  • Risk of regional industry decline from successor shortages
  • Delayed adaptation to rapid IT technology changes
  • Regional economic impacts from natural disasters and pandemics

Innovations

2023: Establishment of Hirogin Credit Service Co., Ltd.

Overview
Integration of Hirogin Guarantee and Hirogin Card Service to strengthen credit guarantees and card services.
Impact
Improved service efficiency and customer convenience.

2022: Introduction of In-House Business Contest

Overview
Held an in-house business contest to promote employee innovation.
Impact
Contributes to generating new business and service ideas.

2023: Major Personnel System Revision

Overview
Abolished seniority-based system after 23 years, shifting to ability-focused personnel system.
Impact
Achieved higher employee motivation and operational efficiency.

2021: Enhanced Internet Banking Functions

Overview
Improved convenience of smartphone apps and net banking, expanded digital services.
Impact
Contributed to acquiring younger customers and increasing usage.

2022: Launch of Special Financing for Regional SMEs

Overview
Established special financing and consultation desks to strengthen support for regional SMEs.
Impact
Promotes regional economic stability and improved creditworthiness.

2021: Expansion of IT Solutions Business

Overview
Group IT subsidiary expanded system development for financial institutions.
Impact
Succeeded in strengthening IT infrastructure and acquiring new customers.

Sustainability

  • Provision of financial services emphasizing sustainability of regional economy and environment
  • Introduction of human resource development programs for local employment creation and diversity promotion
  • Active engagement in disaster relief and reconstruction support for regional communities
  • Promotion of business process reforms to reduce environmental impact
  • Development and promotion of sustainable finance products