Taiko Bank

Basic Information

Stock Code
8537
Industry
Banking
Category Detail
Banks
Prefecture
Niigata Prefecture
Establishment Year
March 1942
Listing Year
February 1990
Official Website
https://www.taikobank.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 Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Toyama Bank, North Japan Bank, Daito Bank

Overview

Taiko Bank is a second-tier regional bank founded in 1942, headquartered in Nagaoka City, Niigata Prefecture, focusing on community-based financial services for small and medium-sized enterprises and individuals with solid management.

Current Situation

Taiko Bank recorded net profit of approximately 2 billion yen, net assets of about 76.4 billion yen, and total assets of about 1.7 trillion yen on a standalone basis for the fiscal year ended March 2022. It is the second largest bank in Niigata Prefecture after the Fourth Hokuriku Bank and serves as the only ordinary bank headquartered in Nagaoka City, providing a stable financial foundation for the regional economy. It operates 62 branches in the prefecture, 8 branches outside the prefecture, and 1 internet branch to meet diverse financial needs. Having learned from past improper lending scandals, it maintains rigorous management practices. In recent years, it has focused on business expansion through strategic partnerships with SBI Holdings and digital transformation initiatives. It has built a new head office with superior disaster prevention measures, earning regional trust. Moving forward, it aims to strengthen support for SMEs and provide diverse financial services to individual customers to revitalize the regional economy and achieve sustainable growth.

Trivia

Interesting Facts

  • The 1979 improper lending scandal was one of the largest bank scandals in history
  • Has featured local idol group Negicco as image character since 2015
  • Head office rebuilt in 2018 with the latest disaster prevention equipment
  • Homegrown president appointed in 2019, the first in about 40 years
  • Second to Fourth Hokuriku Bank in number of main bank relationships in Niigata Prefecture
  • Has concluded strategic capital business alliance with SBI Group
  • Operates 8 branches outside the prefecture, mainly in the Tokyo metropolitan area
  • Shifted to prudent management emphasizing small loans, maintaining stable growth
  • Pioneering introduction of lunch breaks in branches within the prefecture
  • Mascot characters 'Najirakko' and 'Kirarakkko' are beloved locally
  • Small-scale embezzlement incident by staff discovered in 2016
  • Internet branch 'Echigo Ohanabi Branch' is the prefecture's first initiative
  • Strong customer base centered on Nagaoka City as a regional financial institution
  • Improved smartphone payment convenience through collaboration with Lawson Bank
  • One of the stable regional banks listed on the Tokyo Stock Exchange Standard Market

Hidden Connections

  • The improper incident from the former Taiko Mutual Bank era was raised in the Diet, with political connections pointed out
  • Received low-interest loans from 88 city banks, regional banks, and mutual banks during postwar regional finance reconstruction, forming the foundation of management stability
  • Advancing initiatives in digital finance through collaborations with SBI Holdings-affiliated net banks and others
  • Deeply rooted in the regional community and economy as Nagaoka City's only ordinary bank
  • Contributes to regional globalization through business alliance with public foundation for foreign talent hiring support
  • Merger with former Hokuriku Bank created Fourth Hokuriku Bank, leaving Taiko Bank as Nagaoka City's sole remaining bank
  • Strengthened IT infrastructure by changing financial system outsourcing provider and acquiring shares in IT company
  • Deploys different sales strategies within and outside the prefecture to meet varying regional financial needs

Future Outlook

Growth Drivers

  • New business opportunities from regional economic digitalization
  • Strengthened collaboration with SBI Group and new financial product development
  • Expansion of financing and support needs for SMEs
  • Diversification of asset management services for individual customers
  • Enhanced collaboration with regional communities and improved brand trust
  • Revenue growth from promoting cashless payment adoption
  • Increased proposals for asset management products suited to aging society
  • Promotion of ESG finance addressing environmental and social issues
  • Promotion of utilizing public funds for local revitalization
  • Operational efficiency and customer experience improvements through DX investments
  • Enhanced customer information protection via security strengthening
  • Financial education dissemination and regional talent nurturing support

Strategic Goals

  • Achieve over 50% digital channel usage ratio
  • Expand regional market share to increase assets by 20%
  • Expand new businesses through collaboration with SBI Group
  • Achieve over 30% ESG investment and financing ratio in regional society
  • Complete branch DX and introduce unmanned settlement technology
  • Secure top regional ranking in asset management product sales
  • Strengthen financial services for women and youth
  • Maintain financial services with disaster prevention and BCP functions
  • Enhance regional issue resolution financing programs
  • Create regional employment through talent recruitment support

Business Segments

SME Financial Support

Overview
Provides diverse financing and financial support services to regional SMEs, contributing to the maintenance and growth of the regional economy.
Competitiveness
Community-based detailed customer service and long-standing trust relationships
Customers
  • Local Manufacturing
  • Construction
  • Retail
  • Services
  • Food and Beverage
  • Agriculture-Related Corporations
  • Medical and Welfare Organizations
  • Chamber of Commerce Member Companies
  • Local Government-Related Businesses
  • Logistics
Products
  • Working Capital Loans
  • Equipment Fund Loans
  • Guaranteed Financing
  • Business Improvement Support
  • Risk Management Support
  • Cash Flow Consulting
  • Settlement Agency Services

Corporate Fund Management Support

Overview
Offers comprehensive financial services, including fund management, operations, and risk hedging, to a wide range of corporate customers.
Competitiveness
Flexible responsiveness as a local financial institution
Customers
  • Mid-Sized Companies
  • Cooperative Enterprises
  • Public Institutions
  • Educational Institutions
  • Medical Institutions
  • Real Estate Management Companies
  • Construction Companies
  • Distributors
  • Insurance Agencies
  • NPO Corporations
Products
  • Fund Procurement Support
  • Securities Trading
  • Corporate Pension Services
  • FX Risk Hedging
  • Interest Rate Swaps
  • Settlement Services
  • Asset Management

Technology-Related Services

Overview
Supports IT infrastructure provision and service development for the digitalization of regional finance.
Competitiveness
Advanced system operations through partnership with BIPROGY
Customers
  • Fintech Companies
  • IT Vendors
  • SMEs
  • Financial Industry-Related Companies
  • Regional Service Providers
  • Non-Profit Organizations
  • Service Industries
  • Local Governments
Products
  • Internet Banking Platform
  • Settlement Systems
  • Data Management Services
  • Security-Related Services
  • API Provision
  • Digital Account Services

Card Settlement and Credit

Overview
Deploys diverse card settlement services to provide a highly convenient transaction environment.
Competitiveness
Rapid service provision rooted in the region
Customers
  • Individual Customers
  • SMEs
  • Commercial Facilities
  • Merchant Members
  • Retail
  • Services
  • Restaurants
Products
  • Visa Debit Card
  • Credit Card Issuance
  • Settlement Agency Services
  • ATM Usage Services

SBI Collaborative Operations

Overview
Provides new services integrating regional finance and IT utilization through collaboration with the SBI Group.
Competitiveness
Strategic capital alliance and network utilization
Customers
  • SBI Group Companies
  • Financial Product Sales Companies
  • Regional Banks
  • Investors
  • Corporate Customers
Products
  • Joint Services through Capital Business Alliance
  • Co-Managed SBI Money Plaza
  • Online Asset Management Support
  • Financial Education Programs

Community-Based Individual Services

Overview
Deploys various financial products to support long-term life planning for regional individual customers.
Competitiveness
Personalized counseling rooted in the community
Customers
  • Individual Customers
  • Seniors
  • Women
  • Students
  • Local Residents
  • Asset Builders
Products
  • Housing Loans
  • Asset Management Consulting
  • Insurance Product Introductions
  • Child-Rearing Support Loans
  • Points Program

Public and Local Government Financial Services

Overview
Provides financial support for local government fund management and facility construction, contributing to strengthening regional community foundations.
Competitiveness
Stable services based on regional trust
Customers
  • Local Governments
  • Public Organizations
  • Local Public Corporations
  • Education Boards
  • Welfare-Related Organizations
  • Environmental Business Entities
Products
  • Public Fund Handling
  • Facility Construction Financing
  • Welfare Fund Management
  • Local Government Settlement Services

Real Estate Financial Services

Overview
Addresses diverse funding needs related to real estate, supporting the development of regional housing and commercial environments.
Competitiveness
Specialized financial advice rooted in the region
Customers
  • Real Estate Developers
  • Housing Construction Companies
  • Land Owners
  • Individual Investors
  • Commercial Facility Operators
Products
  • Real Estate Collateral Loans
  • Asset Utilization Consulting
  • Rental Property Loans
  • Renovation Loans

Settlement Agency and ATM Services

Overview
Provides diverse settlement and ATM services aimed at improving regional convenience.
Competitiveness
Collaborations with Seven Bank and Lawson Bank
Customers
  • Convenience Stores
  • Other Financial Institutions
  • Corporate Customers
  • Local Residents
Products
  • ATM Installation and Management
  • QR Code Settlement Services
  • Cash Dispenser Services
  • Electronic Money Recharge

Credit Guarantee Services

Overview
Credit guarantee-related operations to strengthen creditworthiness and facilitate smooth loan execution.
Competitiveness
Local financial institution's credit network
Customers
  • SMEs
  • Sole Proprietors
  • Local Government-Related Facilities
  • Startups
Products
  • Financing with Credit Guarantee Association Guarantees
  • Credit Investigation Services
  • Guarantee Intermediation Services

Talent Recruitment Support Services

Overview
Supports regional corporate talent recruitment and development through business alliance with Mirai Works.
Competitiveness
Fusion of local focus and national network
Customers
  • Local SMEs
  • New Entrepreneurs
  • Regional Organizations
  • Local Governments
  • Job Seekers
Products
  • Corporate Employee Recruitment Support
  • Side Job Talent Matching
  • Regional Talent Development Programs

Competitive Advantage

Strengths

  • Community-based solid management
  • Strong trust relationships with SMEs
  • Diverse branch network
  • Advanced system operation capabilities
  • Partnership with SBI Holdings
  • Enhanced disaster prevention functions in new head office
  • Comprehensive financial product lineup
  • Long track record in regional finance
  • Specialization in local SME support
  • Expansion of digital channels
  • Robust settlement services
  • Stable financial base
  • Flexible response to corporate customers
  • Experienced management team
  • Promotion of regional contribution activities

Competitive Advantages

  • The only ordinary bank headquartered in Nagaoka City, securing regional superiority
  • Community-based financial services for local SMEs and individuals
  • Strategic partnership with SBI Group for digitalization and service expansion
  • Ownership of a disaster-resilient head office equipped with high-performance backup generators
  • Improved convenience through ATM collaborations with Lawson Bank and Seven Bank
  • Adaptable to diverse needs with a wide range of lending products
  • Contributes to economic revitalization through region-specific talent recruitment support
  • Strengthened non-branch expansion via internet branch
  • Maintained solid financial base after overcoming management crisis
  • Covers diverse customer segments with broad financial products and services
  • Flexible lending decisions leveraging regional economic expertise
  • Creditworthiness and community trust built over years of experience
  • Provides peace of mind through proactive safety measures
  • Thoroughly maintains community focus with comprehensive branch network
  • Maximizes customer touchpoints through diverse sales channels

Threats

  • Shrinking customer base due to population decline and aging in regional economy
  • Intense competition with other regional banks
  • Profit pressure under low interest rate environment
  • Risk of lagging in digital financial services
  • Concerns over credit decline from scandal recurrence
  • Loan loss risk from deteriorating performance of local companies
  • Burden of stricter financial regulations and compliance
  • Impact of natural disasters on regional economy
  • Increased system investment costs accompanying DX promotion
  • Management risk from success or failure of new business ventures
  • Difficulty differentiating from competitors' digital financial services
  • Impact of unforeseen economic shocks such as new infectious diseases

Innovations

2022: Strategic Capital Business Alliance Concluded with SBI Holdings

Overview
Partnered with SBI to integrate digital services with regional finance.
Impact
Achieved product/service expansion and improved customer convenience

2020: Launched Niigata Prefecture's First Internet Branch 'Echigo Ohanabi Branch'

Overview
Opened an internet branch to strengthen non-face-to-face transactions.
Impact
Successfully attracted younger and remote customers

2023: Joined Lawson Bank's Instant Account Settlement Service

Overview
Enabled au PAY recharge from Lawson Bank ATMs.
Impact
Improved customer satisfaction through enhanced convenience

2021: New Head Office Construction and Enhanced Disaster Prevention Functions

Overview
Completed a new head office with 6,070㎡ floor space, enriched with disaster prevention equipment.
Impact
Improved bank operational continuity during disasters

2023: Began Handling Visa Debit Cards

Overview
New service responding to customer cashless payment needs.
Impact
Contributed to transaction activation and new customer acquisition

2022: Business Alliance with Mirai Works for Talent Recruitment Support

Overview
Implemented alliance to support regional companies' employee and side job talent recruitment.
Impact
Contributed to alleviating regional talent shortages

2024: Enhanced Digital Banking Functions and AI Chatbot Introduction

Overview
Introduced AI chatbot to improve customer service efficiency.
Impact
Improved customer satisfaction and operational efficiency

Sustainability

  • Energy-saving design and high-performance backup generator installation in new head office
  • Strengthened disaster prevention measures through collaboration with regional community
  • Launch of environmentally considerate financial products for customers
  • Promotion of diversity and work-style reforms
  • Activation of CSR activities and hosting of regional contribution events
  • Paperless promotion through digitalization
  • Business process improvements aimed at reducing environmental impact
  • Promotion of women's empowerment and next-generation nurturing support
  • Deployment of programs supporting sustainable regional economic growth
  • Expansion of financing for regional issue resolution in collaboration with customers
  • Promotion of financial support for sustainable agriculture and fisheries
  • Financial support for comprehensive community care advancement