Shikoku Bank

Basic Information

Stock Code
8387
Industry
Banking
Category Detail
Banks
Prefecture
Kochi Prefecture
Establishment Year
October 1878
Listing Year
April 1973
Official Website
https://www.shikokubank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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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, Hyakujushi Bank, Awa Bank, Ehime Bank

Overview

Shikoku Bank is a regional bank founded in 1878, with an extensive branch network centered in Kochi Prefecture, covering all of Shikoku and parts of the Kinki region, providing community-focused financial services as the largest financial institution in the prefecture.

Current Situation

As of the end of March 2023, Shikoku Bank employs 1,222 people, holds outstanding loans of approximately 1.6468 trillion yen and deposits of approximately 2.5156 trillion yen, positioning it as a mid-tier regional bank. Based in Kochi Prefecture, it has branches in Tokushima Prefecture and other Shikoku prefectures as well as the Kinki region, contributing to regional economic revitalization. In recent years, it has promoted digital services and fee-free ATM alliances with other banks to improve convenience, and is focusing on regional industry support through initiatives like the establishment of the 6th Industrialization Support Fund. Its core banking system was migrated to NTT Data's shared center in 2011, achieving cost reductions and stable operations. It launched smartphone ATM services in 2022 and continues IT investments tailored to regional customer needs. Moving forward, it aims for sustainable growth through the Shikoku Alliance for local revitalization and partnerships for regional tourism promotion.

Trivia

Interesting Facts

  • Serves as the core of the prefectural economy as the largest financial institution in Shikoku
  • Founded in 1878, one of the oldest among Japan's regional banks
  • Core member of Shikoku Alliance promoting regional collaboration
  • Wakako Shimazaki from Kochi has served as image character for over 25 years
  • Historically had strict rules including seppuku vows for proper banknote handling
  • Migrated systems to NTT Data shared center in 2011 for efficiency
  • Actively deploys services like convenience store ATMs and smartphone ATMs for regional customers
  • Third-largest branch network in Tokushima Prefecture as a locally focused institution
  • Participates in 6th industrialization fund operations to support agriculture, forestry, and fisheries
  • Expanding regionally with branches in Kinki area outside Shikoku
  • Close collaboration with local administration as designated financial institution in Kochi Prefecture
  • Mid-scale deposit base among regional banks
  • Achieved wide-area expansion through multiple mergers before and after the war
  • Trusted by local economy due to long-term stable financial base
  • Maintains management philosophy of local focus and trust first

Hidden Connections

  • Tomoyuki Takeichi, former president of Square (now Square Enix), is an alumnus of Shikoku Bank with deep ties.
  • Invests in Shikoku Alliance Capital, formed by four Shikoku regional banks, to strengthen regional economic support.
  • E-net ATMs in Kochi Prefecture convenience stores are partnered with Shikoku Bank.
  • Co-established fund to promote 6th industrialization of local industries for support.
  • Shared regional bank system adoption is one of the industry's advanced initiatives.
  • Branches across all Shikoku prefectures and multiple Kinki cities, closely linked with local companies.
  • Strong partnership with local administration as Kochi Prefecture's designated financial institution.
  • Shikoku Bank hardball baseball team contributes to regional sports promotion.

Future Outlook

Growth Drivers

  • Regional industry revitalization through 6th industrialization support
  • Improved customer convenience via digitalization
  • Strengthened regional collaboration through Shikoku Alliance
  • Expansion of new financial services like smartphone ATMs
  • Economic ripple effects from regional tourism promotion partnerships
  • Strengthened regional economic base through SME support
  • Loan expansion via enhanced regional credit guarantees
  • Increasing regional demand post-COVID recovery
  • Cost reductions and efficiency gains from IT investments
  • Enhanced corporate value through environmental and social initiatives
  • Market share expansion through branch network reinforcement
  • Diversified customer acquisition via varied financial products

Strategic Goals

  • Deepen comprehensive alliances with major Shikoku banks
  • 10x increase in fund scale to support regional industry revitalization
  • Achieve 70% smartphone ATM usage expansion rate
  • Promote environmentally considerate management for decarbonized society contributions
  • Build efficient financial service framework via DX
  • Contribute to tourism revenue growth through regional tourism support
  • 30% increase in SME lending ratio
  • Drive innovation through securing and developing digital talent
  • Maximize customer loyalty through CX improvements
  • Achieve sustainable management compliant with ISO and ESG standards

Business Segments

Corporate Lending Services

Overview
Provides diverse lending products and financial solutions for local companies.
Competitiveness
Local trust and diverse lending product offerings
Customers
  • Small and Medium Enterprises
  • Local Manufacturers
  • Agriculture, Forestry, and Fisheries Operators
  • Local Governments
  • Public Organizations
  • Regional Public Interest Corporations
  • Food and Beverage Businesses
  • Retail Businesses
  • IT-Related Companies
  • Medical Corporations
Products
  • Working Capital Loans
  • Equipment Funds Loans
  • Business Succession Financing
  • Bill and Foreign Exchange Transactions
  • Credit Guarantee Fees
  • Loan Handling Fees
  • Consulting Services
  • Fundraising Support
  • Regional Revitalization Support Fund
  • Guarantee Services

Regional Economic Revitalization and Fund Operations

Overview
Develops funds and collaborative projects for regional industry support and revitalization.
Competitiveness
Experience in operating locally focused funds
Customers
  • Local Governments
  • Local Venture Companies
  • Agriculture, Forestry, and Fisheries Associations
  • Local SMEs
Products
  • Shigin 6th Industrialization Support Fund
  • Regional Revitalization Business Fund
  • Tourism Promotion Partnerships
  • Local Revitalization Support

Data Processing and Computer Services

Overview
Ensures high stability through system management and operational support.
Competitiveness
High uptime through collaboration with NTT Data shared center
Customers
  • Shikoku Bank Group Companies
  • Regional Banks
  • Local Financial Institutions
Products
  • Core Banking System Operation Support
  • Data Processing Services
  • System Development and Maintenance
  • IT Consulting

Trust and Leasing Business

Overview
Addresses diverse needs through trust agency operations and leasing services.
Competitiveness
High local trust
Customers
  • Local Companies
  • SMEs
  • Individuals
Products
  • Trust Agency Operations
  • Leasing Contracts
  • Asset Management
  • Guarantee Services

Insurance Sales Agency Operations

Overview
Supports customer peace of mind through counter sales of various insurance products.
Competitiveness
Comprehensive financial services framework
Customers
  • Individual Customers
  • Corporate Customers
Products
  • Life Insurance
  • Non-Life Insurance
  • Group Insurance
  • Medical Insurance

Competitive Advantage

Strengths

  • Largest financial institution scale in the Shikoku region
  • Abundant locally focused financial expertise
  • Extensive branch and ATM network
  • Benefits from NTT Data shared system implementation
  • Strong regional collaboration for local revitalization
  • Support system via diverse affiliates
  • Customer base built on long-term regional trust
  • Strengthened collaboration through Shikoku Alliance
  • Deployment of IT services like smartphone ATMs
  • Expertise in funds for local companies
  • Status as designated financial institution in Kochi Prefecture
  • Improved convenience through fee-free ATM alliances
  • Active investments for regional economic revitalization
  • Stable financial foundation
  • Diverse lineup of financial products and services

Competitive Advantages

  • Largest branch coverage in Shikoku region for high convenience
  • High customer satisfaction through detailed local lending and services
  • Cost reductions and system reliability secured by adopting NTT Data regional bank shared center
  • Synergy effects from comprehensive alliances with major Shikoku regional banks
  • Differentiation through regional industry support like 6th industrialization fund
  • Enhanced digital services such as smartphone ATMs and internet branches
  • Comprehensive service provision through collaboration with diverse subsidiaries and affiliates
  • Integrated framework for credit guarantees and trust agency operations
  • High credibility as designated financial institution by Kochi Prefecture
  • Strong networks with diverse regional industries
  • Expanded convenience through convenience store ATM partnerships
  • Aggressive growth strategies backed by stable finances
  • Robust community ties including regional tourism promotion agreements
  • Addresses diverse customer needs with comprehensive financial services
  • Recognized as a long-term driver of regional economy

Threats

  • Slowing loan and deposit growth due to population decline and aging in local economy
  • Profit pressure from prolonged low interest rate environment
  • Intensifying competition from major city banks and online banks
  • Risk of customer loss from delays in digitalization
  • Changes in business environment from regulatory tightening and legal amendments
  • Increased credit loss risk from weakening regional industries
  • Medium- to long-term risks where local revitalization outcomes are unclear
  • Impact of natural disasters on regional economy and branch operations
  • Rising difficulty in securing talent due to labor shortages
  • Non-performing loan risks in credit guarantees
  • Pressure to revise strategies from changes in alliance structures with competing regional banks
  • Risk of failing to keep pace with rapid technological innovations

Innovations

2022: Launch of Smartphone ATM Service

Overview
Launched ATM transaction service using smartphones to improve convenience.
Impact
Contributes to higher customer satisfaction and usage rates.

2021: Strengthening of Shikoku Alliance Comprehensive Partnership

Overview
Strengthened collaboration among four Shikoku regional banks to promote regional revitalization.
Impact
Achieved operational efficiency and enhanced regional collaboration.

2020: Upgrade of NTT Data Shared System

Overview
Implemented functional improvements and security enhancements for core banking system.
Impact
Achieved stable system operations and reduced operational costs.

2023: Additional Investment in 6th Industrialization Support Fund

Overview
Increased funding to the fund for regional industry revitalization.
Impact
Strengthens funding supply to regional companies and promotes industry growth.

2024: Launch of DX Promotion Project

Overview
Accelerated internal bank reforms for digital transformation.
Impact
Aims for operational efficiency and improved customer services.

Sustainability

  • Regional economic revitalization through support for 6th industrialization of local industries
  • Sustainable tourism promotion via regional tourism partnerships
  • Improved customer convenience through fee-free ATM alliances with Shikoku regional banks
  • Eco-friendly fund operations and regional support activities
  • Active social contribution activities for regional communities
  • Promotion of energy-saving internal systems
  • Diversity initiatives and workplace environment improvements for employees
  • Support for sustainable economic development through partnerships with regional companies
  • Enhanced risk management as a regional financial institution
  • Expansion of CSR activities