Suruga Bank
Basic Information
- Stock Code
- 8358
- Industry
- Banking
- Category Detail
- Banks
- Prefecture
- Shizuoka Prefecture
- Establishment Year
- October 1895
- Listing Year
- November 1963
- Official Website
- https://www.surugabank.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- IyoGin Holdings, Shizuoka FG, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Musashino Bank, Fukuoka Financial Group, 82 Bank, Shimizu Bank
Overview
Suruga Bank is a regional bank established in 1895, operating primarily in Shizuoka and Kanagawa prefectures, with personal loans as its main business and providing financial services through a unique digital strategy.
Current Situation
Suruga Bank recorded a consolidated net profit of approximately 10.6 billion yen for the fiscal year ended March 2023, with outstanding loans of 2.0801 trillion yen and deposits of 3.3557 trillion yen. The main business is personal loans, accounting for about 90% of the total, and it has a nationwide customer base through internet banking. Since the improper lending issue in 2018, it has focused on management refreshment and business improvements, strengthening governance and rebuilding its risk management system. In 2023, it formed a capital and business alliance with Credit Saison to strengthen its credit card business and more. Aiming for sustainable management, it is actively investing in creating new services utilizing IT integration. As a community-based financial institution, it is promoting a strategy to support local economies in Shizuoka and Kanagawa prefectures while seeking growth through broader expansion. Key challenges ahead include stabilizing its profit base and improving customer convenience through digitalization.
Trivia
Interesting Facts
- Regional bank that has received a business suspension order from the FSA
- Bank that introduced finger vein biometric authentication system early
- Long-established regional bank headquartered in Numazu City, Shizuoka Prefecture
- Improper lending related to 'pumpkin carriage' became a social issue
- Operates branches in 11 prefectures nationwide, but mostly local
- Implements nationwide services via internet branches
- Nojima, an electronics retailer, was once the top shareholder
- Equips mobile branch vehicles (access vehicles) with ATMs for patrol sales
- Case of misappropriating customer time deposits discovered, resulting in disciplinary action
- Has a history of long-term litigation with Japan IBM over system development
- Strengthening collaboration as equity-method affiliate with Credit Saison
- Financing for failed share houses became a social issue, leading to improvement measures
- Offers numerous biometric authentication products like bio security deposits
- Operates 'Dream Plaza' housing loan consultation counters at multiple locations
- Actively engaged in supporting regional economic revitalization
Hidden Connections
- Founding family's shares were once sold to electronics retailer Nojima, establishing capital alliance
- Strengthening card business through capital and business alliance with major credit card firm Credit Saison
- Conducted investigation and discipline of employees involved in improper schemes following FSA guidance
- History of renewing core banking system to BankVision after litigation with Japan IBM
- Developed and offers multiple biometric authentication dedicated products, rare among regional banks
- Promotes direct sales to customers by equipping mobile branch vehicles with ATMs
- Serves as designated financial institution for Numazu City and Ebina City financial support
- Pumpkin carriage improper lending issue has deep ties to real estate investment industry
Future Outlook
Growth Drivers
- Customer service improvements through digital technology utilization
- Strengthened regional economic recovery and SME support
- Credit business expansion through alliance with Credit Saison
- Diversification and expansion of personal loan products
- Further utilization strengthening of biometric authentication technology
- Adaptation to regional bank consolidation and reorganization trends
- Continued strengthening of management governance
- Advancement of environment, society, governance (ESG) management
- Deepening regional financial services in population-declining areas
- New development leveraging nationwide network
Strategic Goals
- Establishment of sound lending system and strengthened fraud prevention
- Building sustainable management foundation
- Nationwide rollout of digital banking services
- Market development through strengthened regional economic collaboration
- Improved balance of profitability and risk management
- Deepening community-based service model
- Customer satisfaction improvement and brand strengthening
- Expansion of diverse financial products and services
- Robust talent development and workstyle reform realization
- ESG goal achievement and promotion of social responsibility
Business Segments
Corporate Financing
- Overview
- Corporate financing services meeting diverse funding needs centered on SMEs
- Competitiveness
- Community-based financial network and rapid screening response
- Customers
-
- SMEs
- Real estate investment companies
- Construction companies
- Trading companies
- Local chambers of commerce
- Medical corporations
- Retail stores
- Manufacturing
- Services
- Education-related
- Products
-
- Business financing
- Real estate collateral loans
- Working capital
- Equipment investment loans
- Long-term borrowings
- Bill discounting
- Trade payment settlements
- Consulting services
- Lease financing
- Credit guarantees
Securities and Investment Trust Sales
- Overview
- Providing diverse financial products as a counter for securities and investment trusts
- Competitiveness
- Secure trading environment leveraging biometric authentication technology
- Customers
-
- Individual investors
- SMEs
- Asset management companies
- Pension funds
- Inheritance planning customers
- Products
-
- Investment trusts
- Government bonds
- Municipal bonds
- Stocks
- Insurance product sales
Card Payment Services
- Overview
- Providing diverse card payment services focused on convenience
- Competitiveness
- Convenience through nationwide network and partnerships
- Customers
-
- Individual customers
- Corporate customers
- Store payers
- Products
-
- VISA Debit Card
- Credit card payments
- IC Cash Card
IT Solution Provision
- Overview
- Secure financial business support through IT infrastructure and biometric technology
- Competitiveness
- In-house developed bio security technology
- Customers
-
- Local governments
- Other regional banks
- Corporate users
- Products
-
- Online banking platform
- Biometric authentication system
- ATM operation software
- Cloud services
Insurance Product Sales Agency
- Overview
- Sales agency for diverse insurance products in collaboration with Sony Life and others
- Competitiveness
- One-stop financial and insurance services
- Customers
-
- Individual customers
- SMEs
- Group customers
- Products
-
- Life insurance
- Damage insurance
- Medical insurance
- Personal pension insurance
Competitive Advantage
Strengths
- Strong foundation in personal loan sector
- Nationwide internet banking expansion
- Abundant track record in community-based services
- Customer trust through biometric authentication introduction
- Diverse financial product lineup
- Rapid loan screening system
- Strong local customer network
- Stable asset base
- Diversified revenue model
- Strengthened capital ties with partner companies
- Transparency as a listed company
- Strengthened governance system
- High brand recognition
- Hybrid branch and online expansion
- Employee expertise and experience
Competitive Advantages
- Strong regional base in Shizuoka and Kanagawa prefectures
- Broad customer acquisition through net branches
- High security via finger vein authentication
- Credit enhancement through capital and business alliance with Credit Saison
- Superior financing speed with rapid screening over competitors
- Broad customer segments through diverse real estate loan products
- Enhanced sales force via unique access vehicle introduction
- Improved customer loyalty with abundant product lineup
- Comprehensive financial services linking banking and insurance
- Trust as a historic regional bank
- Synergy creation leveraging equity-method affiliates
- Continuous investment in advanced IT systems
- Progress in governance improvements following FSA guidance
- Efficient operations and cost reductions through branch consolidation
- Specialization in large-scale housing loan market
Threats
- Credit decline from past improper lending issues
- Stricter oversight from FSA and other supervisory authorities
- Risk of customer asset outflow
- Intensifying competition in regional banking
- Profit pressure under low interest rate environment
- Market contraction due to population decline
- Real estate market price fluctuation risks
- Differentiation issues from digitalization lag vs. competitors
- Competition with major city banks
- Market capture by rising FinTech firms
- Talent loss from delayed work environment improvements
- Business constraints from legal amendments
Innovations
2023: Capital and business alliance with Credit Saison
- Overview
- Entered into capital and business alliance with Credit Saison to strengthen credit card business.
- Impact
- Contributes to credit business expansion and profit base strengthening
2022: Biometric authentication system enhancement
- Overview
- Further expanded finger vein authentication technology to improve customer identity verification accuracy.
- Impact
- Strengthens customer trust through improved security
2021: ATM-equipped access vehicle operation launch
- Overview
- Expanded customer services through regional patrols by equipping mobile branch vehicles with ATMs.
- Impact
- Strengthens customer touchpoints and convenience in rural areas
2020: Core banking system renewal
- Overview
- Promoted business efficiency by migrating core banking system to BankVision.
- Impact
- Achieved improved processing speed and reduced operating costs
Sustainability
- Governance system reconstruction and strengthened internal audits
- Review and improvement of risk management system
- Enhanced information security for customer privacy protection
- Enriched financial services for regional economic support
- Environmentally considerate operations and energy-saving branch introductions
- Workstyle reforms and diversity promotion for employees
- Regional rollout of financial education programs
- Promotion of sustainable investment product development
- Regional collaboration projects aiming for social value creation
- Paperless promotion through digital technology