San'in Godo Bank

Basic Information

Stock Code
8381
Industry
Banking
Category Detail
Banks
Prefecture
Shimane Prefecture
Establishment Year
July 1941
Listing Year
October 1983
Official Website
https://www.gogin.co.jp/
TSE Information
TSE Information
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Other Companies
Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin HD, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Tottori Bank, Shikoku Bank

Overview

San'in Godo Bank is a regional bank founded in 1941, operating community-focused banking services as the designated financial institution for Shimane and Tottori Prefectures in the San'in region, with strengthened corporate sales in the Sanyo region.

Current Situation

San'in Godo Bank recorded consolidated net profit of 16.8 billion yen and net assets of approximately 325 billion yen for the fiscal year ended March 2024. It holds a 53% share of loans in the San'in region, serving as a core of the local economy. Amid population decline and aging, it is actively expanding corporate sales in urban areas such as Hyogo Prefecture, Osaka City, and Tokyo to diversify. It is improving efficiency through shared core banking systems and digitalization, enhancing customer convenience with free ATM fees and strengthened partnerships with other banks. It is also developing non-traditional financial businesses, such as establishing a securities subsidiary and investing in a staffing agency, to stabilize performance. Since 2020, it has reorganized its branch network and expanded compact branches to balance cost reduction and sales enhancement, while actively promoting regional contribution activities and local financial support systems. Looking ahead, it aims for sustainable growth through new customer value creation via digitalization, growth strategies in urban areas, and revitalization of the local economy.

Trivia

Interesting Facts

  • Its head office building is the tallest in Shimane Prefecture.
  • Overwhelming regional closeness with 53% loan share in San'in.
  • First regional bank to establish a securities subsidiary in the Chugoku region.
  • Converts some branches to compact branches for efficient sales.
  • High regional contribution as designated institution for Tottori and Shimane Prefectures.
  • Strengthened corporate sales via compact branch entry into Hyogo Prefecture.
  • Early participation in NTT Data's regional bank joint center advancing IT reforms.
  • Ended Gogin Securities operations in 2020, strengthened Nomura Securities partnership.
  • Women's badminton team achieves strong results in Japan League.
  • History of overseas bases in Hong Kong and New York.
  • Integrated one-quarter of branches in 2019 for efficient deployment.
  • Broad regional credit guarantees and leasing via subsidiaries.
  • Financial institution code 0167, SWIFT code SGBKJPJT.
  • Major shareholders include trust banks and life insurers.
  • Expanding ATM alliances in the region to improve convenience.

Hidden Connections

  • High regional closeness as main designated financial institution for public entities and local governments in San'in.
  • Strong ties with Hitachi and NTT Data in core system joint development and operations.
  • Forms Chugoku-Shikoku network with mutual free ATMs with Hiroshima Bank and Iyo Bank.
  • Post-securities subsidiary closure, built financial product brokerage via comprehensive Nomura partnership.
  • Rare among regional banks with a Tokyo branch, focusing on urban corporate transactions.
  • Contributes to regional sports promotion through women's badminton team activities.
  • Past experience with overseas representative offices in Hong Kong and New York.
  • Characteristic multifaceted financial services like regional credit guarantees and leasing.

Future Outlook

Growth Drivers

  • Strengthening high-share regional-close financial services in San'in.
  • Expansion of corporate sales in urban areas like Hyogo and Tokyo.
  • IT efficiency from core system migration to joint center.
  • Sales efficiency via compact branches and digital channels.
  • Deployment of financial products and services supporting regional economic sustainability.
  • Strengthening asset management and guarantees for diversifying customer needs.
  • New service creation and customer experience improvement via financial DX.
  • Sustainable management strategies in collaboration with regional society.
  • Brand value enhancement through regional sports and culture support.
  • Participation in public-private regional revitalization projects.

Strategic Goals

  • Further expand loan share in both San'in prefectures by 5%.
  • Improve urban corporate customer share by 10%.
  • Achieve 20% operational efficiency gain via advanced core systems.
  • Attain 10% cost reduction through optimized branch network.
  • Expand local company support and job creation via regional financial aid.
  • Aim for industry-leading sustainability ratings.
  • Achieve over 80% digitalization of customer touchpoints via DX.
  • Raise female managerial ratio above 30%.
  • Launch 10+ collaborative projects with regional public entities.
  • Continuously expand support for regional sports and cultural activities.

Business Segments

Corporate Lending

Overview
Provides funding support and management assistance to a wide range of industries centered on regional SMEs.
Competitiveness
Trust-based relationships rooted in the region and meticulous corporate services
Customers
  • SMEs
  • Local companies
  • Manufacturing
  • Construction
  • Trading companies
  • Retail
  • Services
  • Agriculture, forestry, and fisheries
  • Medical corporations
  • Public interest corporations
Products
  • Working capital loans
  • Equipment loans
  • Real estate collateral loans
  • Business succession support loans
  • Consulting services
  • Management support services
  • Overseas expansion support
  • Cash flow support
  • Credit guarantees
  • Factoring

Retail Financial Services

Overview
Delivers retail services supporting the regional economy with diverse financial products for businesses.
Competitiveness
Extensive product lineup tailored to corporate needs
Customers
  • Sole proprietors
  • Small businesses
  • Store owners
  • Self-employed
  • Local communities
  • Non-profits
  • Cultural groups
  • Educational institutions
  • Medical institutions
  • Welfare facilities
Products
  • Business loans
  • Insurance products
  • Settlement services
  • Asset management consulting
  • Pension-related services
  • Digital payments
  • Cash management
  • Custodial services
  • Financial consulting
  • Expense management services

Asset Management

Overview
Offers diverse asset management solutions to support customers' long-term wealth building.
Competitiveness
Reliable management leveraging regional foundation
Customers
  • Local governments
  • School corporations
  • Medical corporations
  • Public interest corporations
  • Pension funds
  • Corporate pensions
  • Trust banks
  • High-net-worth individuals
  • Investors
  • Corporate foundations
Products
  • Asset management services
  • Trust services
  • Inheritance and gifting consulting
  • Fund management
  • Real estate management
  • Financial planning
  • Pension fund operation support
  • Financial risk management
  • Corporate governance support
  • Asset allocation

Trust and Guarantee Services

Overview
Reduces customer risks through regionally rooted trust and guarantee services.
Competitiveness
Flexible guarantee responses attuned to local conditions
Customers
  • Home buyers
  • Land owners
  • Company owners
  • Financial institutions
  • Investors
  • Construction companies
  • Real estate agents
  • Government agencies
  • Individual customers
  • Corporate customers
Products
  • Housing loan guarantees
  • Guarantee obligations
  • Will trusts
  • Real estate trusts
  • Contract guarantees
  • Credit guarantees
  • Collateral handling
  • Mortgage setting
  • Debt collection services
  • Project support

IT and System Support

Overview
Contributes to business optimization through efficient financial system operations and IT infrastructure provision.
Competitiveness
Advanced system platform through collaboration with NTT Data
Customers
  • Regional financial institutions
  • Business corporations
  • Public entities
  • System vendors
  • Telecom providers
  • Agents
  • Security companies
  • Resellers
  • ICT companies
  • Financial software providers
Products
  • Shared core system operations
  • System development support
  • Security services
  • Cloud services
  • Data center operations
  • Business efficiency tools
  • Fintech partnerships
  • IT consulting
  • Infrastructure management
  • Help desk

Overseas Business Support

Overview
Supports SME internationalization and overseas business multifacetedly.
Competitiveness
Global response through bases in China and Southeast Asia
Customers
  • SME overseas expansion support
  • Importers/exporters
  • Overseas investors
  • Representative offices
  • International logistics
  • Customs brokers
  • Overseas subsidiaries
  • Regional companies
  • Overseas financial institutions
  • International consultants
Products
  • Overseas site research support
  • Local financial service introductions
  • Import/export finance support
  • Funding advice
  • Overseas remittance services
  • Resident staff dispatch
  • Overseas credit investigations
  • Overseas M&A support
  • Foreign exchange transactions
  • International guarantee services

Real Estate Related Business

Overview
Provides services linking finance and real estate to revitalize regional properties.
Competitiveness
Real estate expertise rooted in regional characteristics and financial integration
Customers
  • Individual customers
  • Corporate companies
  • Construction companies
  • Real estate developers
  • Local governments
  • Asset management companies
  • Financial institutions
  • Housing sales companies
  • Investors
  • Management companies
Products
  • Real estate brokerage
  • Rental management services
  • Real estate appraisals
  • Asset management consulting
  • Land utilization proposals
  • Housing loan handling
  • Sale-leaseback
  • Real estate trusts
  • Land effective use
  • Redevelopment support

Credit Guarantee Business

Overview
Delivers credit guarantee services to support regional economic revitalization.
Competitiveness
Prompt guarantee responses in cooperation with local financial institutions
Customers
  • SMEs
  • Founders
  • Agriculture, forestry, fisheries operators
  • Manufacturing
  • Services
  • Retail
  • Construction
  • Regional financial institutions
  • Local governments
  • Chambers of commerce
Products
  • Credit-guaranteed loans
  • Second opinion guarantees
  • Guarantee obligation management
  • Management support consulting
  • Guarantee limit setting
  • Credit investigations
  • Non-performing debt handling
  • Loan risk reduction measures
  • Guarantee loan consulting
  • Startup support guarantees

Leasing and Finance Business

Overview
Provides diverse leasing and finance products supporting equipment investments.
Competitiveness
Flexible responses specialized in cash flow support for regional companies
Customers
  • Corporations
  • Government offices
  • Educational institutions
  • Medical institutions
  • Manufacturing
  • Retail
  • Services
  • IT companies
  • Transportation
  • Construction
Products
  • Office equipment leasing
  • Vehicle leasing
  • Equipment investment finance
  • IT equipment leasing
  • Medical equipment leasing
  • Rental offices
  • Finance services
  • Asset management
  • Used equipment sales
  • Lease contract management

Credit Card Business

Overview
Realizes convenient payments through regionally rooted credit services.
Competitiveness
High service quality and trust for local customers
Customers
  • Individual customers
  • Corporate customers
  • Store operators
  • Online businesses
  • Partner companies
  • Distributors
  • Travel agencies
  • Educational institutions
  • Medical institutions
  • Public institutions
Products
  • Credit card issuance
  • Merchant services
  • Points services
  • Payment system provision
  • Security management
  • Online payments
  • Card loans
  • Campaign planning
  • Customer support
  • Card renewal management

Securities and Investment Products

Overview
Sells diverse investment products meeting customers' asset formation needs.
Competitiveness
Proposal capabilities and reliability suited to regional characteristics
Customers
  • Individual investors
  • Corporate customers
  • Financial institutions
  • Asset management companies
  • Trust banks
  • Investment trusts
  • Pension funds
  • Real estate related
  • High-net-worth individuals
  • General customers
Products
  • Stock brokerage
  • Investment trust sales
  • Bond sales
  • Asset management consulting
  • Financial product brokerage
  • Risk management
  • Portfolio proposals
  • Inheritance asset management
  • Fund management
  • Asset succession support

Regional Financial Support

Overview
Delivers multifaceted financial support for sustainable regional economic and social development.
Competitiveness
Comprehensive financial support system rooted in the region
Customers
  • Local governments
  • Chambers of commerce
  • SME associations
  • Public entities
  • Financial institutions
  • Shopping street associations
  • Local residents
  • Industry groups
  • Educational institutions
  • Cultural groups
Products
  • Financial education support
  • SME support programs
  • Regional revitalization funds
  • Disaster recovery support
  • Local currency initiatives
  • Financial environment improvements
  • Consulting
  • Regional collaboration events
  • Trust building
  • Social contribution activities

Competitive Advantage

Strengths

  • Extensive customer base rooted in the region
  • High market share as designated financial institution for both San'in prefectures
  • Expansion of corporate sales across multiple regions
  • Efficiency gains from shared core banking systems
  • Diverse financial product lineup
  • Strong regional credibility and trust
  • Ongoing branch network development
  • Contributions to regional economic revitalization
  • Foundation for business expansion in urban areas
  • Comprehensive financial services via diverse affiliates
  • Strategic adoption of compact branches
  • Accumulated history and brand strength
  • New system collaboration with NTT Data
  • Active expansion into non-financial businesses
  • Flexible customer service

Competitive Advantages

  • Easy new customer acquisition through regional trust and close relationships
  • Overwhelming 53% loan market share in San'in region
  • Growth through proactive entry into urban areas like Hyogo and Tokyo
  • IT cost reductions and system advancement via regional bank joint center
  • Broad financial products and diverse value-added services
  • One-stop financial and non-financial services through affiliate collaboration
  • Stable revenue base from regional focus and local government ties
  • Brand strengthening via ingrained regional return and social contribution mindset
  • Cost efficiency via compact branches and space-saving deployments
  • Differentiated corporate services like multifaceted management and overseas support
  • Solid financial base and stable profitability
  • Swift response to customer email leak maintaining trust
  • Operational efficiency from shared system knowledge exchange
  • Enhanced organizational strength through diversity promotion like female executive appointments
  • Community support in pandemic era via regional culture and sports backing

Threats

  • Risk of market contraction from population decline and aging in San'in
  • Intense competition pressure from urban financial institutions
  • Profit squeeze from low interest rate environment
  • IT security risks and customer data breach threats
  • Compliance burden from stricter regulations and financial policy changes
  • Customer outflow risk to emerging fintech firms
  • Regional economic instability from disasters
  • Adaptation challenges to business model shifts amid ongoing pandemic
  • Overseas market uncertainty and FX fluctuations
  • Customer attrition risk from branch network reorganization
  • Competitive landscape changes from regional bank mergers and integrations
  • Expanding talent shortages and skill gaps

Innovations

2023: Participation in NTT Data Regional Bank Joint Center begins

Overview
Migrated core systems to NTT Data's joint center.
Impact
Achieved efficiency and security improvements in system operations.

2021: Investment in staffing agency JOINS

Overview
Strengthened management support utilizing urban part-time and side-job talent.
Impact
Aims to enhance service capabilities through diverse talent utilization.

2020: Gogin Securities operations end

Overview
Transferred financial product brokerage accounts via partnership with Nomura Securities.
Impact
Achieved sales resource consolidation and operational efficiency optimization.

2023: Expansion of compact branches focused on provincial cities

Overview
Compact branch strategy for efficient store operations amid shorter hours.
Impact
Realized both cost reduction and customer convenience.

2022: Strengthened branch network reorganization

Overview
Introduced lunch closures at sub-branches and promotions to full branches.
Impact
Improved operational efficiency and stabilized revenue base.

2023: Promotion of free ATM usage fees

Overview
Expanded mutual free alliances with Hiroshima Bank and Iyo Bank.
Impact
Contributes to higher customer satisfaction and regional collaboration.

2024: Expansion of digital banking services

Overview
Improved convenience of mobile and internet banking.
Impact
Promotes acquisition of younger customers and enhances convenience.

2022: Launch of regional financial support program

Overview
Strengthened cash flow support for regional SMEs and launched management programs.
Impact
Contributes to regional economic revitalization.

2021: Strengthened standalone ATM corner operations

Overview
Continued ATM-only services as alternatives to closed branches.
Impact
Maintains basic financial services for local residents.

2023: Establishment of new corporate sales framework

Overview
Opened new branch in Kawanishi City, Hyogo Prefecture to bolster regional company support.
Impact
Aims for loan expansion and revenue growth.

Sustainability

  • Development of financial products aiming for coexistence of regional economy and environment
  • Efforts toward energy-saving stores and offices
  • Ongoing donations and volunteer support for local communities
  • Human resource utilization through diversity promotion and workplace improvements
  • Thorough customer data protection and security enhancements
  • Promotion of sustainable regional healthcare and welfare measures
  • Establishment of environmentally considerate investment and lending criteria
  • Environmental load reduction via paperless promotion and digitalization
  • Funding support for regional disaster prevention and mitigation activities
  • Strengthened social ties through regional culture and sports support
  • Support for women's social advancement and managerial promotions
  • Employee training systems for sustainable banking