Seven Bank

Basic Information

Stock Code
8410
Industry
Banking
Category Detail
Banks
Prefecture
Tokyo
Establishment Year
April 2001
Listing Year
February 2008
Official Website
https://www.sevenbank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Seven & i, Rakuten Bank, SBI Sumishin Net Bank, NTT

Overview

Seven Bank is an innovative distribution bank that boasts a high market share as the leading player in the convenience store ATM business in the banking industry since its founding in 2001, deploying ATM networks across Japan and overseas.

Current Situation

Seven Bank recorded consolidated net profit of 18.854 billion yen and net assets of 213.08 billion yen for the fiscal year ended March 2023, establishing a stable management foundation. As a subsidiary of Seven & i Holdings, the company operates approximately 27,422 ATMs nationwide, providing highly convenient financial services. Its distinctive business model relies on ATM usage fee income, structured to meet diverse payment needs. Leveraging digital technology, it is sequentially deploying fourth-generation ATMs with facial recognition and QR code reading to enhance customer experience. Overseas, it has expanded into the United States, Indonesia, and the Philippines to diversify its business. Additionally, it is actively strengthening corporate services and integration with electronic money nanaco. Moving forward, it aims to deepen digital banking, expand its global ATM network, and promote sustainability to maintain and enhance its market competitiveness.

Trivia

Interesting Facts

  • Seven Bank has the most ATMs in the domestic convenience store ATM business.
  • First bank in Japan to implement Windows Server-based core banking system.
  • Bills inside ATMs are stained with special ink as a robbery countermeasure.
  • ATM 'ATM+' is a next-generation model with facial recognition and QR code reading.
  • The company holds registered trademarks for electronic money top-ups.
  • Smartphone ATM service is the only nationwide service of its kind.
  • All branch names are flower names corresponding to the account opening month.
  • Originally named IY Bank, renamed in 2005.
  • Seven Bank cash cards are IC-enabled with no issuance fee.
  • Currently operating in the US, Indonesia, and Philippines overseas.
  • As of fiscal 2023, 1,016 consolidated employees and 549 standalone.
  • Corporate sales deposit services are one of the main revenue sources.
  • All ATM equipment is designed and manufactured by NEC.
  • ATM installation network complies with ISO8583 standards.
  • ATM secondary displays feature digital signage functionality.

Hidden Connections

  • Subsidiary of Seven & i Holdings with strong ties to retail distribution.
  • Early operations supported by Sanwa Bank (now Mitsubishi UFJ Bank).
  • Partners with electronic money nanaco to provide points services.
  • Offers card loans utilizing Acom credit guarantees.
  • Pioneer in Japan's convenience store ATM business.
  • Realized new banking model through Big Bang deregulation.
  • Seven Bank ATMs widely installed in Seven & i affiliated stores nationwide.
  • Strength in system development through partnerships with major IT firms.

Future Outlook

Growth Drivers

  • Strengthened competitiveness through fusion of digital channels and physical ATMs
  • Expanded branch network via deeper Seven & i Group collaboration
  • Overseas expansion through partnerships with convenience store operators
  • Further updates to energy-saving, environmentally friendly ATMs
  • Increased usage through smartphone ATM enhancements and promotion
  • Strengthened integration with new electronic money services
  • Diversification and expansion of corporate payment services
  • Operational efficiency and customer experience improvements via AI and IoT
  • New service demand from cashless payment growth
  • Deployment of public-private initiatives for regional revitalization

Strategic Goals

  • Complete update of all ATMs to latest generation models
  • Expand overseas ATM installations by 1.5 times
  • Surpass 5 million smartphone ATM users
  • Halve environmental impact and thoroughly promote energy savings
  • Expand and diversify electronic money integration services
  • Expand corporate payment solution business
  • Maintain and improve customer satisfaction above 90%
  • Provide community-rooted financial services
  • Continuously introduce cutting-edge security technologies
  • Establish sustainable financial business model

Business Segments

ATM Installation and Management

Overview
Provides ATM installation and operational management domestically and overseas.
Competitiveness
Overwhelming track record in ATM installations across a wide range of locations
Customers
  • Convenience stores
  • Shopping centers
  • Train stations and airports
  • Partner financial institutions
  • Hotels
  • Highway service areas and parking areas
  • Distributors
  • Public institutions
Products
  • ATM installation services
  • ATM equipment management and operations
  • Payment network services
  • Security monitoring services

Payment Services

Overview
Provides diverse financial payment services as a revenue base.
Competitiveness
Diverse payment integrations leveraging group synergies
Customers
  • Financial institutions
  • Retail companies
  • Corporate customers
  • Business companies
  • Internet banking users
Products
  • ATM transaction fee income
  • Direct debit services
  • Card transaction processing
  • Electronic money top-ups

Account Services

Overview
Provides convenient account management and diverse personal financial products.
Competitiveness
Account services integrated with a highly convenient ATM network
Customers
  • Individual customers
  • Corporate customers
  • Internet banking users
Products
  • Ordinary deposit accounts
  • Fixed deposit accounts
  • Internet banking
  • Card loans

Overseas Business

Overview
ATM deployments centered on the United States, Indonesia, and the Philippines.
Competitiveness
Strong partnerships with major overseas convenience store operators
Customers
  • Seven-Eleven overseas entities
  • Local financial institutions
  • Local retailers
Products
  • Overseas ATM installation and management
  • Overseas remittance services
  • International payment services

Financial IT Solutions

Overview
Builds and manages highly reliable banking systems and networks.
Competitiveness
Technological capabilities through partnerships with major IT vendors
Customers
  • Financial institutions
  • Business entities
  • System development companies
Products
  • Core banking system implementation
  • Network system operations
  • Equipment manufacturing support

Corporate Payment Services

Overview
Cash payment and account integration services for corporate customers.
Competitiveness
Sales channels integrated with Seven & i Group
Customers
  • Small and medium-sized enterprises
  • Large corporations
  • Distributors
  • Business corporations
Products
  • Sales deposit services
  • Account payment services
  • Expense settlements
  • Corporate card services

Third-Party Allotment Capital Increases and Investments

Overview
Capital procurement activities aimed at strengthening management and expanding partnerships.
Competitiveness
Reliable major financial and distribution shareholders
Customers
  • Institutional investors
  • Financial institutions
  • Strategic partners
Products
  • Capital increase subscriptions
  • Capital alliances
  • Investment deals

Electronic Money Integration

Overview
Deploys electronic money top-ups and points services.
Competitiveness
Strong integration with Seven & i affiliates
Customers
  • Electronic money operators
  • Consumers
  • Merchant stores
Products
  • nanaco top-up
  • Points services
  • Electronic money balance inquiries

Competitive Advantage

Strengths

  • Nation's largest convenience store ATM network
  • Strong ties with Seven & i Group
  • Advanced ATM equipment technology and security
  • Revenue structure from diverse payment services
  • Business diversification through overseas ATM deployments
  • Introduction of advanced digital technologies like facial recognition
  • Stable financial base and net assets scale
  • Growing number of users and accounts
  • Enhanced user convenience with smartphone ATMs etc.
  • Reliable IT infrastructure and core banking systems
  • Diverse corporate payment solutions
  • Comprehensive customer support (phone and monitoring call centers)
  • Registered trademarks for electronic money top-ups
  • Wide installation coverage across all 47 prefectures

Competitive Advantages

  • ATM deployments leveraging synergies with the largest convenience store chain
  • Sequential updates of all ATMs to fourth-generation for latest technology
  • Highly convenient services integrated with various electronic money
  • Realization of cutting-edge ATM operations with facial recognition and QR codes
  • Formation of multinational customer base through expansion into key overseas regions
  • Expanded usage via extensive partner financial institution network
  • High-security features like anti-theft ink installations
  • Enhanced customer experience through fusion of digital channels and on-site ATMs
  • New banking model enabled by post-Big Bang deregulation
  • Stable and flexible funding through strong capital backing
  • Comprehensive product and service offerings for diverse customer needs
  • Efficient system operations and updates through IT major partnerships

Threats

  • Intensifying competition from internet banks and other convenience store ATMs
  • Potential increase in new entrants due to deregulation
  • Risk of revenue decline from reduced cash usage amid electronic payment growth
  • Rising risks of financial crimes and ATM misuse
  • Local environmental and legal risks in overseas operations
  • Increasing system update costs due to technological advancements
  • Risks from strategic changes by partner financial institutions
  • Concerns over shrinking customer base due to population decline and aging
  • Fluctuations in ATM demand from geopolitical risks or economic changes
  • Risk of disruptions from over-reliance on digital infrastructure

Innovations

2024: Completed replacement of all ATMs with fourth-generation models

Overview
Introduced latest ATMs equipped with facial recognition and QR code readers.
Impact
Significantly contributes to improved customer convenience and security.

2023: Nationwide rollout of Smartphone ATM service

Overview
Launched contactless deposit and withdrawal service linked to smartphones.
Impact
Creates new customer touchpoints and enhances convenience.

2022: Expanded electronic money top-up functions

Overview
Began support for Rakuten Edy and transportation IC card top-ups.
Impact
Expands electronic payment users and increases fee income.

2021: Introduced AI-based ATM operation optimization system

Overview
Implemented AI to optimize cash replenishment and maintenance for ATMs.
Impact
Achieves operational cost reductions and improved uptime.

2020: Expanded overseas ATM network

Overview
Completed increase in installations in the US, Indonesia, and Philippines.
Impact
Contributes to expansion of overseas revenue base.

Sustainability

  • Reduced environmental impact through energy-saving ATM modes and LED lighting
  • Promoting barrier-free access with multilingual voice guidance
  • Enhanced security to deter crime and ensure customer peace of mind
  • Supporting community safety improvements through local ATM installations
  • Reduced paper usage by promoting electronic transactions
  • Creating safe and comfortable transaction environments with facial recognition technology