Fukushima Bank

Basic Information

Stock Code
8562
Industry
Banking
Category Detail
Banks
Prefecture
Fukushima Prefecture
Establishment Year
November 1922
Listing Year
October 1992
Official Website
https://www.fukushimabank.co.jp/
TSE Information
TSE Information
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Overview

Fukushima Bank is a second-tier regional bank founded in 1922, operating primarily in Fukushima Prefecture and extending to the southeastern Tohoku and northern Kanto areas, providing financial services that support the local economy.

Current Situation

Fukushima Bank recorded consolidated sales of approximately 13.3 billion yen and a consolidated net loss of approximately 1.7 billion yen for the fiscal year ended March 2021. With a network of about 57 branches in the prefecture, it also has branches in Sendai City and the northern Kanto region, maintaining a stable customer base as a regional financial institution. Through a capital and business alliance with SBI Holdings, it introduced a next-generation core banking system in 2024, aiming for digitalization and improved operational efficiency. Although it has experienced cash embezzlement incidents and administrative improvement orders in the past, it is strengthening internal controls to achieve corporate soundness. It is also enhancing ties with local industries and educational institutions to contribute to regional revitalization. Moving forward, it will promote service expansion through ICT utilization and new financial solutions, aiming for stable growth and regional contribution.

Trivia

Interesting Facts

  • Regional bank with long history in Fukushima Prefecture since 1922.
  • Pursuing IT innovation through capital and business alliance with SBI Holdings.
  • High community integration among Tohoku's second-tier regional banks.
  • Overcoming multiple administrative improvement orders to pursue management reconstruction.
  • Promoting mutual free ATM alliance 'Tohoku Omusubi Corps' in prefecture.
  • Collaborating with Fukushima University to contribute to regional industry promotion.
  • Integrated and reorganized branches to strengthen sales in Koriyama City.
  • Introduced latest core banking system in 2024.
  • Operates net branch 'Branch Anytime Anywhere'.
  • Expanding beyond prefecture as a regional bank.
  • Multiple related subsidiaries handling card and leasing businesses.
  • Past cash embezzlement issues addressed through improved management systems.
  • President Yutaka Kato from Toho Bank background.
  • Strength in loans for local SMEs.
  • Major shareholders include Japan Trustee Services Bank and others.

Hidden Connections

  • Collaborates with SBI Group's financial network for multifaceted financial expansion.
  • Supports regional economic revitalization through industry-academia-government collaboration with local universities.
  • Enhances customer convenience through ATM service alliances with multiple southeastern Tohoku regional banks.
  • Strengthening internal controls based on past administrative improvement order experiences.
  • Stable shareholder structure with multiple trust banks as major shareholders.
  • Actively involved in regional recovery support post-Great East Japan Earthquake.
  • Deeply addresses funding needs of local companies as main bank.
  • Implemented management rationalization through partial virtual branches and branch reorganizations.

Future Outlook

Growth Drivers

  • Operational efficiency gains from IT infrastructure renewal in collaboration with SBI Group.
  • Expected increase in SME lending demand accompanying regional economic regeneration.
  • Customer base expansion through digital financial service enhancements.
  • Market expansion via branch network growth in northern Kanto and southeastern Tohoku.
  • Improved customer convenience through mutual free ATM alliances among regional banks.
  • Social contributions via strengthened ties with local universities and governments.
  • Enhanced response to regional needs with diverse lending products and services.
  • Service innovation from cashless and non-face-to-face transaction growth.
  • Building strong regional relationships through financial education activities.
  • New revenue sources from supporting corporate DX initiatives.
  • Credit recovery by clearing Financial Services Agency improvement orders.
  • Financial product development and support for aging society.

Strategic Goals

  • Complete renewal and penetration of digital banking infrastructure.
  • Expand ratio of SME lending contributing to regional economic growth.
  • Aim to be top-level regional bank in customer satisfaction.
  • Strengthen ESG (Environment, Society, Governance) initiatives.
  • Target 50% expansion in new financial service sales.
  • Build regional collaboration model through strengthened partnerships.
  • Achieve profitability improvement and sound management via operational efficiency.
  • Sustainably strengthen regional disaster prevention and recovery support.
  • Enhance organizational strength through employee diversity promotion.
  • Strengthen new business development and investments for future creation.

Business Segments

Financial Services for SMEs

Overview
Provides diverse financial services to support the growth of local SMEs.
Competitiveness
Fine-tuned support system rooted in the community
Customers
  • Local SMEs
  • Startups
  • Agriculture-Related Businesses
  • Tourism Operators
  • Local Chambers of Commerce
  • Construction Companies
  • Manufacturers
  • Restaurants
  • Retailers
  • Service Providers
Products
  • Working Capital Loans
  • Equipment Financing
  • Unsecured Loans
  • Financial Guarantees
  • Cash Flow Support
  • Business Succession Support
  • Consulting Services
  • Internet Banking
  • Settlement Services
  • Tax Support

Housing Loans and Personal Financing

Overview
Offers diverse financing and asset management products to individual customers.
Competitiveness
Meticulous responsiveness attuned to local lifestyles
Customers
  • Individual Home Buyers
  • Renovation Customers
  • Newlywed Families
  • Seniors
  • Freelancers
  • Self-Employed
  • Salaried Workers
  • Younger Generation
  • Job Changers
  • Student Parents
Products
  • Housing Loans
  • Renovation Loans
  • Card Loans
  • Education Loans
  • Auto Loans
  • Free Loans
  • Credit Cards
  • Investment Trust Account Openings
  • Insurance Sales

Corporate Payments and Cash Management

Overview
Provides payment and management services to corporate customers to support efficiency.
Competitiveness
Flexible payment solutions leveraging regional networks
Customers
  • Local Corporations
  • Chamber of Commerce Member Companies
  • Medical Corporations
  • Educational Corporations
  • Public Interest Corporations
  • Logistics Companies
  • IT Companies
  • Manufacturers
  • Service Providers
  • Agriculture-Related Corporations
Products
  • Remittance and Foreign Exchange Services
  • Bill and Check Handling
  • Corporate Cards
  • Cash Management Systems
  • Corporate Internet Banking
  • Payroll Remittance Services
  • Credit Guarantees

Support for Local Governments and Educational Institutions

Overview
Financially supports fund management and regional revitalization for local governments and educational institutions.
Competitiveness
Stable support framework through regional collaboration
Customers
  • Fukushima Prefecture Local Governments
  • Fukushima City Hall
  • Fukushima University
  • Local Elementary Schools
  • Public Facility Managers
Products
  • Fund Management
  • PR Support
  • Public Finance Services
  • Scholarship Programs
  • Business Restructuring Support

IT Systems and Financial Infrastructure Support

Overview
Promotes introduction and operation of cutting-edge systems to innovate financial services.
Competitiveness
Advanced IT technology utilization through SBI Group collaboration
Customers
  • System Subsidiaries
  • Local Financial Institutions
  • SBI Group
  • Collaborative Corporations
Products
  • Core Banking System Provision
  • Net Banking Platform
  • Security Services
  • Digital Payment Infrastructure

Competitive Advantage

Strengths

  • Extensive branch network rooted in the community
  • IT capabilities strengthened through capital and business alliance with SBI Group
  • Strong relationships with local businesses and individual customers
  • Diverse lending products and flexible service provision
  • Comprehensive internet banking services
  • Trusted brand in the Tohoku region
  • Efforts to stabilize financial foundation
  • Strengthened collaboration with local industries and universities
  • Improved customer convenience through mutual free ATM alliances
  • Deep understanding of regional information and customer needs
  • Comprehensive financial service provision framework
  • Long-term contributions to regional economy and trust building
  • Advanced cash management and settlement services
  • Employees' regional knowledge and responsiveness
  • Robust support for local SMEs

Competitive Advantages

  • As a second-tier regional bank, possesses stable market and customer base centered in Fukushima Prefecture
  • Advancing core system renewal using SBI Group's advanced IT technology
  • Regional strategy with expansion to out-of-prefecture branches and northern Kanto
  • Competitive edge through diverse lending products and services tailored to local needs
  • Enhanced customer convenience with robust net and mobile banking
  • Focus on continuous operational improvements and compliance strengthening
  • Service expansion through alliances with other regional financial institutions
  • Diversification into card services and leasing via specialized subsidiaries
  • Strength in close ties with local companies, governments, and educational institutions
  • Trust built through meticulous, community-rooted customer service
  • Flexible management decisions as a second-tier regional bank
  • Philosophy centered on contributing to sustainable regional economic development
  • Financial base strengthening via capital alliances enabling future investments
  • Differentiated convenience through mutual free ATM alliances
  • Meticulous risk management leveraging regional information

Threats

  • Declining lending demand due to population decrease and shrinking local economy
  • Intensifying competition from other regions and major banks
  • Net interest margin compression risk in ultra-low interest rate environment
  • Customer loss from delays in digitalization response
  • Potential increase in non-performing loans and credit risk
  • Rising regulatory pressures and compliance costs
  • Revenue instability from regional economic fluctuations
  • Increasing market volatility and foreign exchange risks
  • Challenges in keeping pace with rapid fintech changes
  • Business disruptions from disaster risks
  • Growing cyber security threats
  • Risks from changes in business environment of capital alliance partners

Innovations

2024: Full Renewal to Next-Generation Core Banking System

Overview
Introduced latest IT infrastructure via SBI Regional Revitalization Banking System, achieving operational efficiency and service enhancement.
Impact
Improved system stability and new service provision foundation

2023: Enhanced Net Branch 'Branch Anytime Anywhere'

Overview
Advanced functions of web and mobile-only branch to improve non-face-to-face customer convenience.
Impact
Successful user expansion and younger customer acquisition

2022: Extension of Capital and Business Alliance with SBI Holdings

Overview
Accelerated financial DX and new financial service development through strengthened alliance.
Impact
Enhanced competitiveness and management stability

2021: Business Transformation via Cloud Services

Overview
Enhanced operational efficiency and system flexibility through cloud technology adoption.
Impact
Reduced operating costs and faster service delivery

2020: Regional Financial Collaboration Service Development

Overview
Established mutual free ATM service 'Tohoku Omusubi Corps' among southeastern Tohoku regional banks.
Impact
Strengthened customer convenience and maintained competitiveness

Sustainability

  • CSR activities emphasizing contributions to local society and environment
  • Environmental load reduction through energy savings and paperless initiatives
  • Promoting sustainable economic growth via regional industry support
  • Respecting employee diversity through diversity promotion
  • Strengthened regional disaster prevention and recovery support activities
  • Improving local residents' financial literacy through financial education outreach