Fukui Bank

Basic Information

Stock Code
8362
Industry
Banking
Category Detail
Banks
Prefecture
Fukui Prefecture
Establishment Year
December 1899
Listing Year
October 1972
Official Website
https://www.fukuibank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Toyama Bank, Awa Bank, Ehime Bank

Overview

Fukui Bank is a regional bank founded in 1899, deeply rooted in Fukui Prefecture, boasting the top market share within the prefecture, and providing financial services that support the development of the local economy.

Current Situation

Fukui Bank has its head office in Fukui Prefecture, establishing an overwhelming position in the regional financial market with a 43.8% deposit share and 38.7% loan share. Consolidated sales for the fiscal year ending March 2020 were approximately ¥40.7 billion, showing steady performance, with capital of around ¥18 billion. It focuses mainly on deposit and lending services for individuals and small to medium-sized enterprises, strengthening support for the local economy. In recent years, it has deepened ties with other financial institutions through initiatives such as becoming a subsidiary of Fukubank and a business alliance with Nomura Holdings, aiming to improve services and expand the market. It has also actively engaged in the fintech sector, successfully promoting electronic money cards and introducing smartphone ATM services. Through the completion of a new head office building and strategic reorganization of its branch network, it enhances customer convenience while advancing a management strategy that emphasizes coexistence with the region. It plans to absorb and merge Fukubank in 2026, aiming for further operational efficiency and market expansion.

Trivia

Interesting Facts

  • Rare nationwide establishment in 1899 funded by textile businesses as a regional bank.
  • Holds overwhelming position with over 40% share in both deposits and loans in Fukui Prefecture.
  • First in Hokuriku/Chubu region to offer 'smartphone ATM' service.
  • Plans to absorb and merge subsidiary Fukubank in 2026, advancing regional integration.
  • 'JURACA' electronic money card certified as the prefecture's first citizen card.
  • New head office building operations started in December 2020, equipped with cutting-edge facilities.
  • Nation's first case of hosting another bank's branch inside its own at Komatsu Branch.
  • Introduced mobile branch 'Fukugin Kuruza' in 2016 to deliver regionally focused services.
  • Opened digital net branch 'Jurassic Kingdom Branch' in 2017 to strengthen digital response.
  • Rare for a regional bank: capital alliance with a fintech company.
  • Historical incident in 1955 where an employee was involved in a mountaineering accident.
  • Historic regional bank listed on Tokyo Stock Exchange in 1972.
  • Pursues convenience improvements through ATM partnerships with Seven Bank and Aeon Bank.
  • Migrated UNIX-based core banking system to NTT Data Regional Bank Joint Center in 2009.
  • Owns diverse affiliates including economic research institute and credit guarantee service company.

Hidden Connections

  • Serves as designated financial institution for nearly all municipalities in Fukui Prefecture and Fukui University National University Corporation.
  • Capital and business alliance with Nomura Holdings, building collaborative relationship in asset management.
  • Supported application of Corporate Rehabilitation Law for Ono Group, involved in regional economic risk management.
  • Mutual opening of ATM networks with Ishikawa's Hokkokoku Bank, advancing regional financial collaboration.
  • Jointly developed electronic money card with Fukui Shimbun, contributing to regional financial DX.
  • Leading financial reorganization in Hokuriku region through full subsidiary of Fukubank.
  • As a regional bank, maintains a representative office in Bangkok for international expansion.
  • Subsidiary credit guarantee services focused on supporting local SMEs.

Future Outlook

Growth Drivers

  • Regional bank reorganization for financial area expansion.
  • Digital channel strengthening through fintech partnerships.
  • Economic recovery of regional SMEs and increased equipment investment demand.
  • New service rollout from cashless payment proliferation.
  • Management efficiency improvement via Fukubank absorption merger.
  • Stable revenue securing through strengthened local government partnerships.
  • Diversification of regional customers' asset management needs.
  • Enhancement of financial products and services for aging society.
  • Promotion of non-branch transactions via smartphone ATMs.
  • Regional base strengthening centered on new head office building.
  • Enhanced asset management proposal capabilities via Nomura HD collaboration.
  • Expansion of environmentally considerate financial products adapted to regional constraints.

Strategic Goals

  • Complete full absorption and management integration of Fukubank.
  • Maintain and expand prefecture deposit share over 50%.
  • 20% sales efficiency improvement through DX initiatives.
  • Achieve top regional share in cashless payments.
  • Improve ESG ratings through strengthened regional society collaboration.
  • 60% smartphone ATM service utilization rate.
  • Expand asset formation support for diverse customer segments.
  • Sophisticate financial support for regional SMEs.
  • Improve employee satisfaction and secure talent.
  • Maintain stable financial soundness and growth.

Business Segments

Corporate Lending

Overview
Offers diverse lending services to strengthen the management foundation of regional corporations.
Competitiveness
Top market share in the prefecture with strong regional ties
Customers
  • Small and medium-sized enterprises
  • Local corporations
  • Local governments
  • Farmers
  • Tourism businesses
  • Manufacturing
  • Services
Products
  • Working capital loans
  • Equipment investment loans
  • Credit guarantee services
  • Leasing products
  • Lending consulting

Local Government Financial Support

Overview
Supports local governments' fund operations and management, contributing to stable administrative operations.
Competitiveness
Reliability and long track record
Customers
  • Fukui Prefecture
  • Municipalities in the prefecture
  • Fukui University National University Corporation
Products
  • Designated financial institution services
  • Public project fund management
  • Tax collection agency

Asset Management and Investment Services

Overview
Provides financial products and advisory services to meet diverse asset management needs.
Competitiveness
Fine-tuned services based on regional financial expertise
Customers
  • Individual investors
  • Corporate customers
  • Pension funds
  • Medical corporations
Products
  • Investment trust sales
  • Government and corporate bond trading
  • Asset management services
  • Pension consulting

Payment Solutions

Overview
Payment infrastructure supporting regional cashless promotion and convenience improvement.
Competitiveness
Trust built through partnerships with local companies
Customers
  • Small stores
  • Local shops
  • Fukui Shimbun
  • Chambers of Commerce
Products
  • Electronic money (JURACA)
  • ATM service partnerships
  • Smartphone ATM services

Competitive Advantage

Strengths

  • Overwhelming deposit and loan share within Fukui Prefecture
  • Long-standing trust and brand power rooted in the region
  • Area expansion through subsidiary Fukubank
  • Comprehensive alliance with Nomura Holdings
  • Robust rollout of fintech services
  • Extensive branch network and mobile branch introduction
  • Strong ATM network partnerships
  • Sound financial base and stable earnings structure
  • Flexible cooperation with local governments
  • Efficient operations via integrated core banking system
  • Diverse lending products and corporate network
  • Latest facilities in the new head office building
  • Improved convenience through ties with regional financial institutions
  • Customer-centric services and regional revitalization support
  • Provision of highly secure financial products

Competitive Advantages

  • Covers nearly the entire prefecture, deeply embedded in the regional economy
  • Approx. 44% deposit share providing stable funding base
  • Capturing neighboring prefecture market via Fukubank subsidiary
  • Already introduced advanced electronic money and smartphone ATMs
  • Advancing digital innovation through fintech partnerships
  • Expanded usage via ATM partnerships with Seven and Aeon Banks
  • Stable revenue secured through close ties with local governments
  • Diverse lending products tailored to regional needs
  • Rare for a regional bank: own new head office building completed
  • Achieved fully free-fee partnerships with regional financial institutions
  • Reliable customer base from prudent management
  • Creating new foundations through collaborations with multiple financial groups
  • Brand reliability backed by long history
  • High customer touchpoints through diverse channels
  • High customer satisfaction from regionally focused services

Threats

  • Business base shrinkage due to population decline in regional economy
  • Profit pressure from prolonged low interest rate environment
  • Intense customer acquisition competition with other financial institutions
  • Costs to respond to rapid advancement of digital financial services
  • Increased bad debt risk from regional economic stagnation
  • Rising operational costs from strengthened regulations
  • Intensifying competition with fintech companies
  • Impact on regional economy from natural disasters
  • Corporate management deterioration due to COVID-19
  • Insufficient response to changing customer needs in aging society
  • Changes in market structure from regional bank mergers and reorganizations
  • Decline in competitiveness from delays in financial DX initiatives

Innovations

2020: Comprehensive alliance with Fukubank 'F Project' launched

Overview
Strengthens regional financial collaboration and promotes joint service development.
Impact
Contributes to expanded regional customer base and cost reductions.

2023: Smartphone ATM service launch

Overview
Introduced new service enabling ATM transactions via smartphone.
Impact
Enhances user convenience and strengthens customer satisfaction.

2021: Asset management business alliance with Nomura Holdings

Overview
Realized new financial products and expanded sales channels.
Impact
Diversifies revenue through enhanced asset management proposals.

2020: New head office building completion and operations start

Overview
Balances operational efficiency and environmental considerations in energy-saving latest building.
Impact
Improves employee work environment and expands visitor convenience.

2024: Fukubank full subsidiary completion

Overview
Accelerates regional collaboration under integrated group management.
Impact
Creates business synergies and improves customer service quality.

2022: JURACA electronic money card service enhancement

Overview
Improves regionally focused payment infrastructure via digitalization.
Impact
Promotes cashless usage in the region.

2023: Further expansion of FITnet ATM membership

Overview
Strengthens Hokuriku region's collaborative ATM network.
Impact
Expands customer convenience and transaction opportunities.

2021: Mobile branch 'Fukugin Kuruza' operations start

Overview
Secures new access channels for areas outside the region and elderly customers.
Impact
Deepens regionally focused services and expands customer base.

2020: Digital household asset management app introduction

Overview
Enables unified management of household accounts and assets.
Impact
Enhances user financial literacy and promotes usage.

2023: Seven Bank ATM joint installation functional upgrade

Overview
Improved operability and security through joint ATM replacements.
Impact
Significantly improves customer ATM usage environment.

Sustainability

  • Expansion of support for local companies to revitalize regional economy
  • Construction and operation of energy-saving new head office building
  • Improved resource efficiency through ATM sharing
  • Contribution to regional cashless promotion activities
  • Strengthened handling of environmentally and socially considerate financial products
  • Promotion of paperless operations through digitalization
  • Financial education support through collaboration with regional communities
  • Workplace reforms to improve employee work-life balance
  • BCP development to strengthen disaster response capabilities
  • Active participation in regional volunteer activities
  • Enhancement and promotion of financial services for the elderly
  • Governance strengthening to establish sustainable management base