Juroku Financial Group

Basic Information

Stock Code
7380
Industry
Banking
Category Detail
Banks
Prefecture
Gifu Prefecture
Establishment Year
October 2021
Listing Year
October 2021
Official Website
https://www.16fg.co.jp
TSE Information
TSE Information
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Overview

Juroku Financial Group is a regional bank holding company established in 2021 based in Gifu Prefecture, serving as the core entity providing diverse financial services rooted in the local economy.

Current Situation

Juroku Financial Group recorded total assets of approximately 8.3753 trillion yen and net profit of 17.1 billion yen in fiscal 2021, maintaining a stable management foundation. Centered on its main subsidiary Juroku Bank, it develops community-based financial services and strengthens competitiveness among regional banks. In 2024, it entered into a business alliance with Resona Holdings to advance strategic enhancements in the retail sector. Group companies diversify into credit guarantees, securities, cards, IT services, and more to meet a wide range of regional financial needs. With the establishment of the holding company, it has strengthened governance, promoted business efficiency, and enhanced group collaboration. From the perspective of regional economic revitalization, it actively engages in support for emerging companies and local community development. Moving forward, it aims to improve profitability and achieve sustainable growth through DX initiatives and customer base expansion. Having obtained approval from the Financial Services Agency, it is listed on the Tokyo Stock Exchange Prime Market, further strengthening corporate governance.

Trivia

Interesting Facts

  • Juroku Bank is the core of a historic regional bank founded in 1877.
  • Transition to holding company structure in 2021 is relatively new among regional banks.
  • Business alliance with Resona Holdings is an unusual strategic collaboration for regional banks.
  • Head office in Gifu City, Gifu Prefecture, with strong influence on regional economy.
  • Operates as an audit and supervisory committee company, advancing governance.
  • Diversified management with subsidiaries in securities and cards.
  • Dual listing on Tokyo Stock Exchange Prime and Nagoya Stock Exchange Premier markets.
  • Actively expanding IT-related businesses to address financial DX.
  • Established town revitalization company, focusing on regional promotion.
  • Highly reliable company established with strict approval from the Financial Services Agency.
  • Approximately 2,700 employees, substantial scale for a regional bank group.
  • Trust banks are major shareholders of Juroku Bank, indicating deep ties with financial institutions.
  • Inherits the tradition of a local community-based financial institution with over 140 years of history.
  • Provides diverse financial services while staying rooted in the region.
  • Operates startup support and emerging company funds in the region.

Hidden Connections

  • Alliance with Resona Holdings strengthens ties with major city banks.
  • Shares partial ownership of Juroku Densan Digital Services stock with Densan System Holdings.
  • Shareholders include Japan Master Trust Bank and Japan Custody Bank, building trust relationships among financial institutions.
  • Owns regional credit guarantee company under its umbrella, strengthening credit risk management.
  • Joint venture with securities firm in collaboration with Tokai Tokyo Financial Group.
  • Established local Gifu town revitalization company, directly involved in regional promotion.
  • Rare structure with listings on both Tokyo and Nagoya Stock Exchanges.
  • As a relatively new holding company among regional banks, has significant room for management reform.

Future Outlook

Growth Drivers

  • Strengthened support for regional economic recovery and SME growth
  • Customer access expansion through digital technology utilization
  • Retail service strengthening via business alliances
  • Rapid response capabilities to diversifying financial needs
  • Rising demand for sustainability investments
  • New business development opportunities from regional revitalization
  • Development and promotion of ESG-compliant financial products
  • Increasing needs for community-based credit guarantees
  • Business efficiency via AI and data utilization
  • Competitive enhancement through financial DX
  • Sophistication and expansion of asset management services
  • New business creation through inter-company collaborations

Strategic Goals

  • Establish as one of Japan's leading regional financial groups in the Tokai region
  • Improve customer convenience through digitalization
  • Maximize contributions to sustainable regional economic development
  • Expand and stabilize revenues from diversified financial services
  • Implement ESG strategies addressing environmental and social issues
  • Strengthen group governance and risk management
  • Expand community-based credit guarantee business
  • Improve profitability through business efficiency
  • Sophisticate regional emerging company support framework
  • Foster organizational culture emphasizing employee diversity and expertise

Business Segments

Corporate Lending Segment

Overview
Corporate lending services focusing on funding support for local companies.
Competitiveness
Strong credit based on regional economic ties and quick response capabilities
Customers
  • Small and medium enterprises
  • Local companies
  • Large corporations
  • Venture companies
  • Public entities
Products
  • Working capital loans
  • Equipment investment financing
  • Business revitalization support
  • Project finance

Credit Guarantee Services

Overview
Provides credit guarantee services in collaboration with financial institutions.
Competitiveness
Specialized in local companies with high-reliability guarantee operations
Customers
  • Small and medium enterprises
  • Financial institutions
  • Business operators
Products
  • Institutional guarantees
  • Credit investigations
  • Credit management support

Securities Business Segment

Overview
Deploys securities trading and asset management solutions.
Competitiveness
Fine-tuned customer service rooted in the local community
Customers
  • Individual investors
  • Corporate customers
  • Financial institutions
  • Asset management companies
Products
  • Stock trading brokerage
  • Investment trust sales
  • Asset management consulting

Card Business Segment

Overview
Supports daily life and business with diverse card services.
Competitiveness
Local customer base and affiliate network
Customers
  • Individual customers
  • Affiliated stores
  • Corporate customers
Products
  • Credit card issuance
  • Settlement services
  • Points programs

IT Services Segment

Overview
Provides IT solutions for financial institutions to achieve business efficiency.
Competitiveness
Abundant financial industry knowledge and technical expertise
Customers
  • Group companies
  • Regional financial institutions
  • Companies
Products
  • System construction and operation
  • Digital transformation support

Leasing Segment

Overview
Deploys leasing services for a wide variety of equipment and machinery.
Competitiveness
Service system flexibly responding to regional needs
Customers
  • Regional mid-sized companies
  • Small businesses
  • Public facilities
Products
  • Equipment leasing
  • Vehicle leasing
  • IT equipment leasing

Regional Promotion and Investment Segment

Overview
Implements investments and support initiatives for regional economic revitalization.
Competitiveness
Enhanced regional collaboration and diverse investment expertise
Customers
  • Local governments
  • Venture companies
  • Investors
Products
  • Regional revitalization investment funds
  • Entrepreneur support
  • Town development projects

Consulting Segment

Overview
Consulting business specialized in management support and research.
Competitiveness
Proposal capabilities based on diverse financial and regional knowledge
Customers
  • Group companies
  • Companies
  • Local governments
Products
  • Business reform support
  • Human resource development support
  • Research services

Education and Training Segment

Overview
Provides education services on finance, management, and more.
Competitiveness
Proven track record in human resource development rooted in the region
Customers
  • Group employees
  • Regional companies
  • Local government staff
Products
  • Seminar hosting
  • Human resource development programs

Real Estate Management Segment

Overview
Handles operations and management of group real estate.
Competitiveness
Asset management leveraging regional networks
Customers
  • Group companies
  • Individual and corporate customers
Products
  • Asset management
  • Rental management
  • Real estate development support

Local Government and Public Support Segment

Overview
Implements fiscal support for local governments and planning proposals for public projects.
Competitiveness
Strong ties with local politics and administration
Customers
  • Local governments
  • Public entities
Products
  • Funding support
  • Subsidy brokerage
  • Public project consulting

Environment and Social Contribution Segment

Overview
Deploys initiatives contributing to sustainable regional development.
Competitiveness
Social value creation based on deep regional understanding
Customers
  • Local residents
  • Local governments
  • Companies
Products
  • Environmental conservation activities
  • Regional event support

Competitive Advantage

Strengths

  • Community-based customer base
  • Service diversification through group collaboration
  • Stable financial foundation
  • Strong local network
  • Diversified financial services deployment
  • Governance enhancement via audit and supervisory committee
  • Reliability from Tokyo Stock Exchange Prime Market listing
  • Business expansion through alliances
  • High employee expertise
  • Flexible business strategies
  • Active involvement in regional revitalization
  • Robust IT systems division
  • Expansion into investment businesses
  • Diverse sales channels
  • Solid management team

Competitive Advantages

  • Superior to other banks with a strong customer base centered in Gifu
  • Optimized group management under financial holding company structure
  • Retail strengthening through business alliance with Resona Holdings
  • One-stop financial services via diverse subsidiaries
  • Enhanced internal controls as an audit and supervisory committee company
  • Unique expansion of comprehensive financial services among regional banks
  • Distinctive management policy emphasizing regional economic revitalization
  • Strict compliance framework approved by the Financial Services Agency
  • Improved customer experience through diversified touchpoints and DX
  • High business quality from specialists across multiple fields
  • Promotion of new businesses and investments leveraging capital strength
  • Implementation of management strategies contributing to sustainable town building
  • Active regional social contribution activities in Gifu City, home to its head office
  • Growth potential in non-banking businesses like securities and cards
  • High financial soundness and stability

Threats

  • Intensifying competition in the regional banking industry
  • Risk of regional economic contraction due to population decline
  • Profit pressure from low interest rate environment
  • Increased operational burden from stricter regulations
  • Growing IT security risks
  • Rise of new fintech companies
  • Increased credit risk due to economic fluctuations
  • Regional infrastructure risks such as disasters
  • Risk of lagging in rapid digitalization
  • Macroeconomic interest rate policy changes
  • Uncertainty in regional revitalization outcomes
  • Delays in responding to diversifying customer needs

Innovations

2023: Business alliance with Resona Holdings commenced

Overview
Alliance aimed at joint service development and sales enhancement in retail sector.
Impact
Accelerates customer base expansion and service improvements

2022: Name change to Juroku Densan Digital Services and strengthened joint venture structure

Overview
Strengthened IT service framework through joint venture with Densan System Holdings.
Impact
Expands quality and scope of IT solutions

2021: Transition to holding company structure

Overview
Established holding company to optimize resource allocation and enhance group collaboration.
Impact
Achieves business efficiency improvements and governance strengthening

2024: Enhanced functionality of mobile banking app

Overview
Added features including reduced transfer fees to improve convenience.
Impact
Improves customer satisfaction and usage rates

2023: First reverse pitch event for regional revitalization

Overview
Promotes business models solving regional challenges in collaboration with emerging companies.
Impact
Expected ripple effects on regional economy

2022: Digital transformation promotion program launched

Overview
Initiative to review and automate business processes.
Impact
Contributes to business efficiency and cost reductions

2023: Launch of online financial seminars

Overview
Began offering investment education and asset management enlightenment online.
Impact
Contributes to improving customers' financial literacy

2024: Introduction of AI-based loan screening system

Overview
Utilizes AI technology to speed up and improve accuracy of loan decisions.
Impact
Shortens screening time and strengthens risk management

2023: Expansion of environmentally considerate investment products

Overview
Strengthened ESG investment product lineup to expand customer options.
Impact
Promotes sustainable investments and enhances customer satisfaction

2021: Establishment of regional revitalization-related fund

Overview
Newly established fund specialized in supporting local entrepreneurs and SMEs.
Impact
Promotes fund liquidity for regional economic revitalization

Sustainability

  • Active participation in regional environmental conservation activities
  • Promotion of regional entrepreneur support and emerging company nurturing
  • Paperless promotion in financial operations
  • Building disaster recovery support system through regional collaboration
  • Development and promotion of ESG investment products
  • Workplace environment fostering diversity and inclusion
  • Expansion of renewable energy utilization
  • Support for local events and cultural activities
  • Enhanced customer data protection and information security
  • Support for building sustainable regional economies