Fukuoka Financial Group

Basic Information

Stock Code
8354
Industry
Banking
Category Detail
Banks
Prefecture
Fukuoka Prefecture
Establishment Year
April 2007
Listing Year
April 2007
Official Website
https://www.fukuoka-fg.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyogin Holdings, Shizuoka FG, Kyoto Financial Group, Mebuki Financial Group, Kyushu FG, Concordia Financial Group, Nishi-Nippon FH, Hirogin Holdings, Chiba Bank, Gunma Bank, The 77 Bank, The Hachijuni Bank

Overview

Fukuoka Financial Group is a financial holding company of a regional bank group centered on Kyushu, established in 2007, and is a leading industry player with strengths in regional finance.

Current Situation

Fukuoka Financial Group has total consolidated assets exceeding 29 trillion yen, mainly centered in the Kyushu region with subsidiaries including Fukuoka Bank, Kumamoto Bank, Juhachi-Shinwa Bank, etc., occupying a top-class position in regional finance. Sales for the fiscal year ended March 2022 were approximately 280.4 billion yen, and net profit reached 54.1 billion yen, maintaining a sound financial foundation. Group-wide system integration has been completed, promoting improvements in customer convenience and business efficiency. In 2021, it established the digital-only bank 'Minna Bank' and is actively promoting a digital shift. In response to environmental and social issues, it has established an SDGs support subsidiary and focuses on coexistence with local communities. In 2023, it introduced Japan's first unified local tax QR code-compatible ATMs, achieving innovative service enhancements. In the long term, it positions regional economic revitalization and DX promotion as growth drivers, aiming for further business expansion and strengthening of its customer base.

Trivia

Interesting Facts

  • Relatively new establishment but strengthened collaboration among Kyushu regional banks.
  • Accelerating digitalization by adding internet bank to the group.
  • First nationwide introduction of unified local tax QR code-compatible ATMs.
  • Subsidiaries include Bank of Fukuoka, The Bank of Kumamoto, and Juhachi-Shinwa Bank.
  • Merged The Bank of Nagasaki and Shinwa Bank, based in Nagasaki Prefecture.
  • Started mutual ATM deposits among three banks since 2010.
  • Actively entering new businesses like M&A advisory.
  • Stable financial base and top-class in regional finance.
  • Alliance with Tokyo Century for leasing business.
  • Digital bank 'Minna Bank' experiencing rapid growth.
  • Specialized in regional finance while proactively introducing cutting-edge technologies.
  • Established Fukuoka Financial Group Culture and Arts Foundation.
  • Unified group systems to achieve business efficiency.
  • Attracting attention as a successful example of regional bank reorganization.
  • Deeply contributing to regional economic revitalization due to local closeness.

Hidden Connections

  • The Bank of Nagasaki and Shinwa Bank shared bases in Nagasaki Prefecture, succeeding in strengthening financial foundation through integration.
  • Alliance with Tokyo Century enables leasing business expansion beyond regional bank barriers.
  • Subsidiary iBank Marketing incorporates technology from IT venture directors.
  • Minna Bank is Japan's first smartphone-only bank born from a regional bank group.
  • Maintaining regional financial competition through adjustments with Japan Fair Trade Commission during management integration.
  • Complementing Fukuoka region's financial network through full acquisition of Fukuoka Chuo Bank.
  • Mutual ATM and passbook usage among group three banks is an industry pioneer.
  • Utilizing data from regional economic research to contribute to regional companies' strategies.

Future Outlook

Growth Drivers

  • Active utilization of digital banking and fintech
  • Improving customer convenience like unified local tax collection
  • Strengthening SME support aligned with regional population
  • Revenue expansion in new businesses like M&A advisory
  • Revenue diversification through leasing and investment businesses
  • Enhancing corporate value through SDGs response
  • Acquiring young customers via internet bank Minna Bank
  • Business efficiency and cost reductions through system integration
  • Strengthening CSR activities centered on regional economic revitalization
  • Improving competitiveness and market share through regional financial reorganization
  • Banking operation innovation through data utilization and AI introduction
  • Developing new products and services in collaboration with regions

Strategic Goals

  • Establish top share and overwhelming brand in Kyushu region
  • Achieve over 70% digital service utilization rate
  • Realize over 30% revenue ratio from SDGs-related businesses
  • Complete full digitalization of ATMs and branches
  • Achieve 50 billion yen in new business revenue through M&A and investments
  • Achieve 100 cases annually in business succession support for regional SMEs
  • Expand group total assets to 50 trillion yen scale
  • Reduce CO2 emissions by 50% in line with environmental targets
  • Gain recognition as a national model in financial services
  • Significant improvement in employee satisfaction and diversity metrics

Business Segments

Financial services for local governments

Overview
Providing comprehensive funding procurement and operational support for local public entities.
Competitiveness
Strong credit base rooted in the region
Customers
  • Local public entities
  • Public project operators
  • Welfare facilities
  • Educational institutions
  • Regional companies
Products
  • Public infrastructure financing
  • Social welfare fund lending
  • Education-related loans
  • Policy-related fund support

Financing for SMEs and local companies

Overview
Meeting the funding needs of SMEs that form the core of the regional economy.
Competitiveness
Detailed customer service and regional network
Customers
  • Manufacturing
  • Retail
  • Services
  • Construction
  • Agricultural corporations
  • Food and beverage
Products
  • Working capital financing
  • Equipment investment loans
  • Business revitalization support
  • Credit guarantees

Corporate securities and asset management services

Overview
Specialized services for effective use of corporate assets and growth support.
Competitiveness
Advanced management expertise rooted in the region
Customers
  • Corporate entities
  • Institutional investors
  • High-net-worth individuals
  • Corporate pension funds
Products
  • Asset management advice
  • Securities brokerage services
  • Investment trusts
  • M&A support

Leasing and finance services

Overview
Meeting diverse corporate funding and equipment introduction needs.
Competitiveness
Enhanced framework through collaboration with Tokyo Century
Customers
  • Manufacturing
  • Distribution
  • Medical institutions
  • Construction
  • IT companies
Products
  • Equipment leasing
  • Vehicle leasing
  • IT equipment leasing
  • Fund procurement consulting

Digital banking and fintech support

Overview
Providing highly convenient financial services through digital innovation.
Competitiveness
Collaboration with the new digital bank Minna Bank
Customers
  • Individual customers
  • Startup companies
  • Regional financial institutions
  • Electronic payment providers
Products
  • Smartphone banking app
  • API services
  • Fintech collaboration
  • New service development

M&A advisory services

Overview
Strongly supporting growth strategies and business succession for local companies.
Competitiveness
Rich network of regional deals
Customers
  • Mid-sized and SMEs
  • Investment funds
  • Regional bank groups
  • Business succession seekers
Products
  • M&A intermediation
  • Business succession support
  • Corporate valuation
  • Legal support

Insurance agency business

Overview
Insurance services providing diverse risk management.
Competitiveness
Reliable insurance product lineup through group collaboration
Customers
  • Individual customers
  • Corporate customers
  • Local governments
  • SMEs
Products
  • Life insurance
  • Non-life insurance
  • Corporate insurance
  • Employee welfare insurance plans

System development and operation services

Overview
Supporting business efficiency with safe and cutting-edge IT environments.
Competitiveness
Advanced IT solutions realized through group collaboration
Customers
  • Group banks
  • Regional financial institutions
  • Local governments
  • Outsourcing companies
Products
  • Core system development
  • IT infrastructure construction
  • Operation and maintenance services
  • New technology introduction support

Credit guarantee and collection services

Overview
Supporting stable regional finance through credit supplementation and sound debt management.
Competitiveness
Guarantee and collection services with deep knowledge of regional characteristics
Customers
  • Financial institutions
  • Corporate entities
  • Real estate companies
  • SMEs
Products
  • Credit guarantees
  • Debt collection
  • Non-performing loan management
  • Risk management

Regional economic research and consulting

Overview
Research and consulting contributing to regional economic development.
Competitiveness
Rich data and network rooted in the region
Customers
  • Local governments
  • SMEs
  • Financial institutions
  • Educational institutions
Products
  • Economic research
  • Corporate support
  • Industry analysis
  • Policy recommendations

Factoring services

Overview
Quickly responding to SMEs' funding needs.
Competitiveness
Leveraging the credit strength of the regional financial group
Customers
  • SMEs
  • Retail
  • Manufacturing
  • Services
Products
  • Accounts receivable purchasing
  • Cash flow support
  • Corporate credit evaluation

Venture investment and support business

Overview
Promoting growth and revitalization of regional emerging companies.
Competitiveness
Regional-rooted risk management unique to regional banks
Customers
  • Startups
  • Local SMEs
  • Innovation companies
Products
  • Funding provision
  • Business development support
  • Networking
  • Incubation services

Competitive Advantage

Strengths

  • Overwhelming regional closeness in Kyushu
  • Broad business expansion through diverse subsidiaries
  • Promoting DX with a digital-only bank
  • Strong financial base and high capital adequacy ratio
  • Completion of group-wide system integration
  • High contribution to regional economy
  • Long years of financial expertise and local network
  • Strong financing support system through public-private partnerships
  • Abundant human resources and specialized departments
  • Diverse financial product lineup
  • Active expansion in M&A and investment businesses
  • Proactive response to environmental and social issues
  • Cost competitiveness through business efficiency
  • Diversified revenue base including securities and leasing
  • Introduction of advanced technologies like local tax QR code

Competitive Advantages

  • Top-class regional network within Kyushu
  • Diversified management holding multiple regional and digital banks
  • High customer closeness with region-specific financial services
  • Latest IT infrastructure enabling efficient services
  • Stable financing supply capacity due to strong financial base
  • Providing cutting-edge services with innovative local tax QR code collection
  • Creating new revenue sources through digital-only bank establishment
  • Active investment in new businesses like M&A advisory
  • One-stop response to customer needs with wide financial services
  • Strong commitment and collaboration for regional economic revitalization
  • Cost reduction effects through group synergies
  • Strengthened leasing business via partnership with Tokyo Century
  • Providing credit guarantee and collection services leveraging rich expertise
  • Unique M&A deal development rooted in the region
  • Achieving differentiation from competitors through strong regional bank alliance

Threats

  • Prolonged low interest rate environment in regional banking
  • Shrinkage of financial demand due to regional population decline
  • Risk of delays in antitrust review for business integrations
  • Intensifying competition with new entrants like fintech
  • Risk of customer loss due to digitalization delays
  • Concerns over non-performing loans from economic fluctuations
  • Increased business operation costs from stricter regulations
  • Risk of loan defaults from deteriorating local government finances
  • Cyberattack risks to IT infrastructure
  • Changes in competitive environment from financial institution reorganizations and mergers
  • Delays in responding to rapid changes in customer needs
  • Impact of economic deterioration from external shocks like COVID-19

Innovations

2023: Introduction of Japan's first unified local tax QR code-compatible ATMs nationwide

Overview
In 2023, introduced new ATMs 'AKe-Sx' from Hitachi Channel Solutions, implementing QR code collection service first among national financial institutions.
Impact
Significant improvement in customer convenience and local tax collection efficiency.

2022: Capital and business alliance with Tokyo Century for leasing business

Overview
Entered capital and business alliance with Tokyo Century to strengthen leasing business, enhancing FFG Leasing.
Impact
Achieved diversification and market expansion of leasing services.

2021: Launch of digital-only bank 'Minna Bank'

Overview
Opened Japan's first smartphone-only bank from a regional financial institution, targeting Gen Z for new customer acquisition.
Impact
Contributes to new market development and group digitalization.

2021: Completion of group efficiency through system integration

Overview
Successfully unified IT infrastructure for three group banks by completing system integration of Juhachi-Shinwa Bank.
Impact
Achieved business efficiency and cost reductions.

2020: Merger of The Bank of Nagasaki and Shinwa Bank to form Juhachi-Shinwa Bank

Overview
As part of regional financial reorganization, the two banks merged to strengthen management base.
Impact
Contributes to revenue improvement and enhanced regional economic support.

2023: Expansion of cashless services via smartphone app

Overview
Enhanced transfer and payment functions in Minna Bank's smartphone app, expanding user base.
Impact
Expected to expand regional cashless payments and increase sales.

2022: Establishment of M&A advisory subsidiary FFG Succession

Overview
Supporting regional business succession and creating new revenue sources.
Impact
Supporting growth of regional SMEs and mid-to-long-term revenue expansion.

2023: Modernization of customer services through ATM renewal

Overview
Fully updated ATMs across all group branches to Hitachi Channel Solutions models.
Impact
Improved safety and convenience, increasing user satisfaction.

2020: Strengthening community contributions through SDGs support subsidiary establishment

Overview
Strengthening businesses addressing environmental and social issues for sustainable society realization.
Impact
Enhancing corporate value and regional brand.

2021: Full acquisition of IT startup diffeasy

Overview
Acquired regional IT venture to strengthen technology and promote DX.
Impact
Contributes to strengthening group's digital strategy.

Sustainability

  • Strengthening support for local companies to revitalize regional economy
  • Promoting paperless operations to reduce environmental impact
  • Expanding regional contributions in welfare and education
  • Formulating investment and lending policies based on SDGs
  • Improving employee satisfaction through diverse work styles
  • Continuing disaster support activities in collaboration with local communities
  • Expanding cashless and digital services
  • Promoting in-house energy efficiency with environmental consideration
  • Implementing proactive training for women's advancement
  • Deploying support programs for low-income individuals for financial inclusion
  • Introducing measures to reduce CO2 emissions
  • Establishing funds to promote regional future investments