Towa Bank

Basic Information

Stock Code
8558
Industry
Banking
Category Detail
Banks
Prefecture
Gunma Prefecture
Establishment Year
June 1917
Listing Year
February 1990
Official Website
https://www.towabank.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 Holdings, Chiba Bank, Gunma Bank, Tsukuba Bank, Akita Bank, Fukuoka Financial Group, Hachijuni Bank, Tochigi Bank

Overview

Towa Bank is a second-tier regional bank founded in 1917, providing community-focused financial services primarily in Gunma and Saitama Prefectures, contributing to the development of the local economy.

Current Situation

In the fiscal year ending March 2024, Towa Bank recorded consolidated net profit of approximately 4.5 billion yen and total assets of about 2.4 trillion yen, maintaining a solid financial base. Centered on its main regions of Gunma and Saitama Prefectures, it operates a network of 92 branches, strengthening community-based lending and deposit services. It received 35 billion yen in public funds under the Financial Revitalization Law in 2009 and fully repaid them in 2018 and 2024, achieving sound management. In 2014, it signed collaboration agreements with Tochigi Bank and Tsukuba Bank to contribute to economic revitalization in the northern Kanto region. Since 2020, it has entered a capital alliance with SBI Holdings, focusing on digital financial services and operational efficiency. Moving forward, in addition to community focus, it aims to innovate services using IT technology and realize sustainable local economic growth, planning to continue expanding while meeting diverse customer needs.

Trivia

Interesting Facts

  • Founded in 1917 as Gunma Savings Mutual Finance Corporation
  • Adopts regional character 'Raccoon Rascal' for bank image
  • Fully repaid 35 billion yen in public funds, achieving sound management
  • Actively participates in three-bank collaboration agreement in northern Kanto
  • Began providing 365-day ATM services in 2002
  • Has capital and business alliance with SBI Holdings
  • Partners with major convenience store ATMs nationwide for improved convenience
  • Operates community-focused leasing and card subsidiaries
  • Branches mainly in Gunma Prefecture, also in Saitama, Tokyo, and Tochigi
  • Offers passbook designs popular with local residents
  • Focuses on improving capital adequacy ratio after public funds repayment
  • Has specialized branches for corporate sales
  • Hosts economic events and seminars in northern Kanto region
  • Supports local companies with advanced loan reviews and rapid response
  • Actively participates in disaster prevention and social contribution activities

Hidden Connections

  • Access to cutting-edge digital financial technology through SBI Group partnership
  • Promotes regional economic revitalization programs through collaboration of three northern Kanto regional banks
  • Realizes regional co-creation through strong trusted relationships with local companies
  • Ensures nationwide convenience through partnerships with major convenience store ATMs
  • Bank rooted in local history from former mutual finance company lineage
  • Fosters unique affinity using regional characters
  • Maintains good relations with local governments and Financial Services Agency after public funds repayment
  • Deploys social welfare contributions to regional society centered on Saitama Prefecture

Future Outlook

Growth Drivers

  • Deepening of community-focused financial services
  • Digital shift through collaboration with SBI Holdings
  • Economic revitalization effects from northern Kanto three-bank collaboration
  • Development of new services for aging society
  • Expansion of cashless payment demand
  • Increasing demand for growth support for regional SMEs
  • Deployment of sustainability-focused financial products
  • Expansion of online and smartphone banking usage
  • Strengthened collaboration with government and welfare sectors
  • Acquisition and retention of new customer segments

Strategic Goals

  • Further enhancement of reliability and soundness as a regional financial institution
  • Promotion of financial operation digitalization and customer experience innovation
  • Sustainable regional economic development through northern Kanto three-bank collaboration
  • Expansion of sustainability-considerate product lineup
  • Expansion of regional SME support programs
  • Development and integrated operation of diverse financial channels
  • Achieve over 90% customer satisfaction
  • Optimization of ATM usage environment and cashless promotion
  • Sophistication and continuation of regional society contribution activities
  • Strengthening of financial risk management and thorough compliance

Business Segments

Lending for Local SMEs

Overview
Provides a variety of lending products to meet the funding needs of local SMEs.
Competitiveness
Community-based credibility and rapid review process
Customers
  • Manufacturing
  • Retail
  • Services
  • Construction
  • Agricultural Corporations
  • Medical Corporations
  • Food and Beverage
  • Real Estate
  • Educational Institutions
  • Local Governments
Products
  • Working Capital Loans
  • Equipment Funds Loans
  • Promissory Note Loans
  • Bill Discounting
  • Real Estate Collateral Loans
  • Credit Guarantee Loans
  • Lease Financing
  • Project Financing
  • Business Revitalization Loans
  • Consulting Services

Payment and Cash Management Services

Overview
Offers a wide range of services to support efficient cash management and payments.
Competitiveness
Advanced systems and regional collaboration strengths
Customers
  • SMEs
  • Local Governments
  • School Corporations
  • Medical Institutions
  • NPO Corporations
  • Public Organizations
  • Group Credit Life Insurance Policyholders
  • Land Developers
  • Chambers of Commerce
  • Interbank Transactions
Products
  • Account Management Services
  • Salary Transfer Services
  • Utility Bill Collection Agency
  • Electronic Payment Services
  • Corporate Cards
  • Overseas Remittance Services
  • Cash Management
  • Internet Banking
  • Electronic Recordable Claims Transactions
  • Fund Transfer Services

Housing Loans and Real Estate Services

Overview
Provides loans and real estate services tailored to local housing needs.
Competitiveness
Local trust and abundant regional information
Customers
  • Home Buyers
  • Real Estate Agents
  • Construction Companies
  • Renovation Contractors
  • Local Governments
  • Financial Institutions
  • Land Owners
  • Home Sales Companies
  • Real Estate Investors
  • Housing Loan Users
Products
  • Housing Loan Lending
  • Flat 35 Agency Operations
  • Home Renovation Loans
  • Real Estate Collateral Loans
  • Asset Management Support
  • Home Warranty Services
  • Housing Loan Prepayments
  • Real Estate Appraisal Services
  • Land Use Consulting
  • Insurance Add-on Services

Financial Product Sales for Corporations

Overview
Supports corporate asset formation and management through diverse financial products.
Competitiveness
Community-focused proposal capabilities and trusted relationships
Customers
  • SMEs
  • Local Companies
  • Financial Institutions
  • NPO Corporations
  • School Corporations
  • Medical Corporations
  • Construction Companies
  • Service Providers
  • Manufacturing
  • Retail
Products
  • Investment Trust Sales
  • Insurance Products
  • Loan-Related Products
  • Lease Contracts
  • Securities Transactions
  • Retirement Benefit Management Products
  • Asset Management Support
  • Cash Flow Management
  • Settlement Products
  • Tax Consulting Services

Regional Financial Network Utilization

Overview
Promotes strengthened regional finance and new service creation through broad collaborations.
Competitiveness
Northern Kanto regional collaborations and operational efficiency expertise
Customers
  • Regional Banks
  • Shinkin Banks
  • Credit Unions
  • Local Governments
  • Economic Organizations
  • Chambers of Commerce
  • Local Companies
  • Financial Service Companies
  • SBI Group
  • Various Investment Companies
Products
  • Capital and Business Alliances
  • Regional Economic Revitalization Agreements
  • Joint Financial Service Development
  • Customer Referral Systems
  • Operational Efficiency Solutions
  • Joint Marketing
  • Credit Guarantee Collaboration
  • Personnel Exchange and Training
  • Joint Lending Programs
  • IT System Sharing

Digital and Fintech Services

Overview
Leveraging SBI partnership to popularize digital financial services in the region.
Competitiveness
SBI Group's cutting-edge technology and regional responsiveness
Customers
  • Individual Users
  • SMEs
  • Corporate Customers
  • Younger Generation
  • Elderly
  • Investors
  • Online Shoppers
  • Smartphone Natives
  • Local Stores
  • Payment Service Adopters
Products
  • Mobile Banking
  • Internet Banking
  • Electronic Money Payments
  • Online Loan Applications
  • Account Linkage Services
  • Cashless Payment Terminals
  • Fintech Collaboration Services
  • Digital Asset Management
  • Online Securities Services
  • Online Investment Trust Sales

Leasing and Installment Sales Business

Overview
Offers leasing and installment services supporting local companies' equipment investments.
Competitiveness
Flexible responsiveness due to community focus
Customers
  • SMEs
  • Medical Institutions
  • Manufacturing
  • Construction
  • Services
  • Agricultural Corporations
  • Government Agencies
  • Local Public Bodies
  • School Corporations
  • Real Estate Developers
Products
  • Various Machinery and Equipment Leases
  • IT Equipment Leases
  • Medical Equipment Leases
  • Construction Machinery Leases
  • Vehicle Leases
  • Office Furniture Leases
  • Installment Sales
  • Sale and Leaseback
  • Finance Leases
  • Operating Leases

Corporate Accounts and Asset Management

Overview
Suite of services supporting corporate customers' asset management and efficient operations.
Competitiveness
Integrated support through regional financial networks
Customers
  • Small Corporations
  • NPO Corporations
  • Medical Corporations
  • School Corporations
  • Local Governments
  • Social Welfare Corporations
  • Real Estate Management Companies
  • Chambers of Commerce
  • Economic Organizations
  • Investment Funds
Products
  • Corporate Account Opening
  • Asset Management and Operation Support
  • Fund Transfer Services
  • Cash Management
  • Payment Agency Services
  • Electronic Recordable Claims Issuance
  • Online Account Management
  • Corporate Credit Cards
  • Asset Preservation Services
  • Financial Consulting

Pension and Welfare Services

Overview
Strengthens pension and welfare financial support in anticipation of an aging society.
Competitiveness
Trusted responsiveness rooted in the community
Customers
  • Pension Recipients
  • Nursing Homes
  • Social Welfare Corporations
  • Local Governments
  • Medical Institutions
  • Disability Support Groups
  • NPO Corporations
  • Elderly Groups
  • Welfare Providers
  • Health Insurance Associations
Products
  • Pension Transfer Accounts
  • Utility Bill Collection Agency
  • Financial Services for Nursing Homes
  • Welfare Organization Fund Management
  • Welfare Loans
  • Welfare-Related Investment Trusts
  • Welfare Sector Funding
  • Subsidy Applications
  • Pension Receipt Support Services
  • Related Event Support

Regional Revitalization and Tourism Support Services

Overview
Provides financial services related to the tourism industry for regional revitalization.
Competitiveness
Comprehensive support leveraging regional networks
Customers
  • Local Governments
  • Tourism Associations
  • Local Chambers of Commerce
  • Tourism-Related Companies
  • Event Organizers
  • Local Residents
  • SMEs
  • Accommodations
  • Transportation Operators
  • Restaurants
Products
  • Tourism Funds Lending
  • Regional Event Funding Support
  • Tourism-Related Payment Services
  • Regional Currency Issuance Support
  • Local Product Sales Support
  • Regional Tourism Promotion
  • Tourism Investment Support
  • New Tourism Facility Loans
  • Regional PR Consulting
  • Regional Revitalization Funds

Competitive Advantage

Strengths

  • Solid management focused on the community
  • Extensive branch network
  • Sound financial base after full repayment of public funds
  • IT utilization through capital alliance with SBI Group
  • Broad regional collaboration agreements in northern Kanto
  • Provision of diverse preferential services
  • Diverse customer base and regional brand
  • Diversification of financial services
  • Rapid loan review system
  • Strong regional credibility
  • Promotion of cashless payments
  • Compliant and steady operations
  • High employee expertise
  • Diverse ATM network
  • High public contribution through social initiatives

Competitive Advantages

  • High customer loyalty through community-focused strategy centered on Gunma and Saitama Prefectures
  • Ensured soundness by fully repaying public funds under the Financial Revitalization Law
  • Advanced IT investments and online services through partnership with SBI Holdings
  • Contributes to regional economic revitalization through collaboration with three northern Kanto regional banks
  • Flexible response to customer needs with diverse deposit and loan products
  • Improved customer convenience through extensive ATM partnerships
  • Fosters regional affinity through character branding
  • Provides specialized funding and management services for corporations
  • Captures younger customers with enhanced digital banking services
  • Stable funding base from wide acquisition of utility and pension transfer accounts
  • Hybrid strategy combining branch networks and digital channels
  • Meets diverse customer needs with community-focused leasing business
  • Stable management base with employee stock ownership and local shareholders
  • Robust compliance and risk management systems
  • Regional contribution activities in collaboration with local events and social welfare organizations

Threats

  • Risk of regional economic contraction due to declining birthrate and aging population
  • Intensifying competition with major urban banks
  • Margin compression from low interest rate environment
  • Customer loss from delays in digitalization
  • Increased operating costs from strengthened financial regulations
  • Rise of emerging fintech companies
  • Natural disaster risks to regional economy
  • Credit losses from increased credit risk
  • Rising funding costs from fund outflows
  • Business contraction of client companies due to population decline
  • Challenges in maintaining financial stability post-public funds repayment
  • Indirect impacts from global economic instability

Innovations

2024: Strengthening Community-Focused Digital Banking

Overview
Expanded smartphone app functions leveraging partnership with SBI Holdings.
Impact
Successfully acquired younger customers and improved convenience

2023: RPA Introduction for Operational Efficiency

Overview
Introduced Robotic Process Automation in bank operations to promote labor savings.
Impact
Reduced routine task time by 25% and improved personnel efficiency

2022: Advancing Northern Kanto Regional Economic Collaboration Agreement

Overview
Launched new services for regional economic revitalization utilizing agreements with Tochigi Bank and Tsukuba Bank.
Impact
Expanded financial support for regional companies and increased mutual referrals

2021: Strengthening Cashless Payment Service Collaborations

Overview
Promoted expansion of ATM usage with convenience store partnerships and Lawson Bank.
Impact
Increased account retention rate through improved customer convenience

2020: Capital Alliance with SBI Holdings

Overview
Implemented business and capital alliance to introduce advanced financial services.
Impact
Contributed to strengthening competitiveness in IT field

Sustainability

  • Sustainable growth support through regional economic revitalization
  • Development and provision of environmentally considerate loan products
  • Strengthened collaboration with social welfare corporations
  • Paper resource reduction through cashless promotion
  • Promotion of regional disaster prevention and recovery support activities
  • Workstyle reforms and work-life balance initiatives for employees
  • Regional rollout of financial education programs
  • Efforts to improve employment rate for people with disabilities
  • Establishment of regional agriculture support funds
  • Active deployment of energy-efficient branches
  • Support for regional culture and sports activities
  • Enhanced security for internet banking