Orient Corporation

Basic Information

Stock Code
8585
Industry
Other Financial Services
Category Detail
Consumer & Business Finance
Prefecture
Tokyo
Establishment Year
March 1951
Listing Year
October 1974
Official Website
https://www.orico.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Towarize, Premier Group, Credit Saison, AEON FS, Acom, JACCS

Overview

Orient Corporation is a major Mizuho FG-affiliated installment sales company founded in 1951, having established a top-tier position in the industry in the credit card and auto loan sectors.

Current Situation

Orient Corporation has consolidated total assets of approximately 5.329 trillion yen and net assets of approximately 303.9 billion yen, with credit card membership reaching 11.01 million as of 2020. In its mainstay sales credit and auto loan business, it leads competitors through rapid screening and a robust sales network to dealers. With strong support from Mizuho Financial Group, it has implemented management reforms and capital strengthening since the 2010 management crisis, establishing a stable business foundation. From a sustainability perspective, it is strengthening customer information management and exclusion of antisocial forces. In recent years, it has expanded its business areas through acquisitions such as Aeon Product Finance. From 2024 onward, it aims to acquire customers and diversify its business by promoting big data utilization and digitalization centered on the card business. While monitoring intensifying market competition and regulatory trends, it pursues sustainable growth.

Trivia

Interesting Facts

  • Auto loan screening results available in as fast as 30 minutes
  • Valid Orico Card membership exceeds 11 million
  • Principal Member serving on MasterCard's international board
  • Involved in operating the Ancient Orient Museum
  • Multiple capital increases since listing for fundraising
  • Past incident of attempted yakuza extortion
  • Strengthened screening system following renovation scam case
  • Mizuho Financial Group is the largest shareholder
  • Management team from former Dai-Ichi Kangyo Bank has led for long term
  • Rich lineup of tie-up cards related to anime and sports
  • Airport lounge services for card members
  • Improved payment convenience with contactless IC cards
  • More robust sales visit system to merchants than competitors
  • Owns one of Japan's largest debt collection companies
  • Prominent Orico Card branding on Mizuho Bank ATMs

Hidden Connections

  • Itochu Corporation is a major shareholder with strong group ties
  • Inherited Mizuho Bank's personal loan guarantee business
  • Competes with JACCS, AEON Financial Service, etc.
  • Owns and operates Ancient Orient Museum, involved in cultural activities
  • Influences global payments as MasterCard international board member
  • Deploys financial services across sales credit and auto loans
  • Enhanced credit evaluation through big data analysis of customer data
  • Strengthened compliance post-past scandals and business improvement orders

Future Outlook

Growth Drivers

  • Service efficiency and new customer acquisition through digitalization
  • Synergy realization from strengthened Mizuho FG collaboration
  • Expansion of tie-up card and online lending markets
  • Growth in auto loans and used car-related business
  • Advanced credit evaluation via big data and AI
  • Introduction of next-gen payment technologies like contactless
  • Enhanced response to environmentally and socially considerate management
  • Revenue stabilization through horizontal expansion of diverse financial services
  • New market development via regionally rooted sales system
  • Flexible management strategies adapting to regulatory changes
  • Expansion of sustainability and social contribution businesses
  • Long-term customer retention through customer satisfaction initiatives

Strategic Goals

  • Achieve 15 million card members
  • Complete digital transformation across all channels
  • Expand new lending services to approx. 200 billion yen in sales
  • Strengthen development of sustainable finance products
  • 20% cost reduction through business efficiency
  • Advanced anti-social measures and compliance systems
  • Enhance market competitiveness and presence domestically and internationally
  • Business area expansion through broader industry partnerships
  • Continued social contributions and regional collaboration network building
  • Strengthened customer information security and privacy

Business Segments

Credit Guarantee Business

Overview
Provides a variety of credit guarantee services to Mizuho Group financial institutions.
Competitiveness
Extensive guarantee expertise and broad customer base
Customers
  • Regional banks
  • Financial institutions
  • Corporate customers
  • Sales agents
  • Installment sales companies
Products
  • Personal loan guarantees
  • Corporate credit guarantees
  • Tie-up financing guarantees
  • Captive loan credit guarantees

Payment Solutions

Overview
Provides high-performance payment infrastructure to meet diverse payment needs.
Competitiveness
International payment capabilities through MasterCard partnership
Customers
  • Merchants (retail, dining, services)
  • E-commerce operators
  • Partner companies
  • Logistics companies
Products
  • Credit card merchant payments
  • Contactless IC cards
  • Online payment systems
  • Mobile payment support

Credit Card Business Support

Overview
Provides comprehensive support from card business launch to operations.
Competitiveness
Advanced data analysis and customer management systems
Customers
  • Credit card issuers
  • Financial institutions
  • Merchants
  • Marketing companies
Products
  • Card issuance support
  • Customer data analysis
  • Points management system
  • Customer support

Loan Sales Business

Overview
Offers a wide range of loan products for autos and housing-related needs.
Competitiveness
Fast screening speed and comprehensive sales support network
Customers
  • Used car dealers
  • Retailers
  • Renovation companies
  • Individual customers
Products
  • Auto loan products
  • Shopping credit
  • Renovation loans
  • Loan screening agency

Data Analysis and Research Services

Overview
Market and customer analysis services through Orient General Research Institute.
Competitiveness
Specialized expertise in the installment sales industry
Customers
  • Group companies
  • Partner financial institutions
  • Market research firms
  • Policy agencies
Products
  • Market research reports
  • Big data analysis
  • Customer behavior analysis
  • Credit risk assessment

Debt Collection Services

Overview
Conducts collection operations centered on Japan Debt Collection Co., Ltd.
Competitiveness
Broad collection network and legal support system
Customers
  • Financial institutions
  • Credit card companies
  • Installment sales companies
  • Corporate enterprises
Products
  • Debt collection agency
  • Legal consultation services
  • Debt securitization support
  • Collection consulting

Insurance Services

Overview
Offers a variety of insurance products through Itochu Orico Insurance Service.
Competitiveness
Product development leveraging group synergies
Customers
  • Individual customers
  • Corporate customers
  • Financial institutions
  • Sales agents
Products
  • Credit guarantee insurance
  • Loan insurance
  • Life insurance agency operations
  • Damage insurance sales

Leasing and Business Services

Overview
Provides various leasing services to support corporate funding efficiency.
Competitiveness
Comprehensive finance proposal capabilities
Customers
  • Corporate customers
  • Medical institutions
  • Educational institutions
  • Service industries
Products
  • Auto leasing
  • Business leasing
  • IT equipment leasing
  • Capital investment support

In-House Contact Center and Services

Overview
Contributes to business efficiency through comprehensive services by Staff Orico.
Competitiveness
Highly specialized staff and IT integration
Customers
  • Internal group businesses
  • Partner companies
  • Retail
  • Financial institutions
Products
  • Customer support
  • Credit management
  • Data analysis
  • Marketing support

Real Estate Related Services

Overview
Expands real estate related services through Orico Estate.
Competitiveness
Reliability from customer network and credit guarantees
Customers
  • Individual investors
  • Corporate customers
  • Management companies
  • Real estate operators
Products
  • Real estate information services
  • Rental guarantees
  • Management support
  • Investment advice

Digital Technology and System Development

Overview
Provides cutting-edge financial IT solutions through System Orico.
Competitiveness
Fusion of high technical skills and business knowledge
Customers
  • Internal business divisions
  • Group companies
  • Partners
  • External clients
Products
  • Financial system development
  • Business app development
  • Big data utilization
  • System security

Competitive Advantage

Strengths

  • Strong capital support from Mizuho FG Group
  • Rapid response capabilities in auto loan screening
  • Rich customer base (approx. 11 million members)
  • International credibility as MasterCard Principal Member
  • Unique sales system linking with used car dealers
  • Wide deployment of credit card brands
  • Comprehensive provision of diverse financial services
  • High market share and top-class industry position
  • Advanced credit guarantee expertise and risk management
  • Robust collaboration system with group companies
  • Track record in data analysis and big data utilization
  • One of Japan's largest debt collection networks
  • High brand recognition (Orico Card)
  • Financial soundness achieved through proactive management reforms
  • Established diverse sales channels

Competitive Advantages

  • Funding and credibility unique to Mizuho Bank affiliation
  • Rapid screening and follow-up system in auto loans
  • Abundant customer data and credit management capabilities in domestic installment sales
  • Utilization of MasterCard's international payment network as a board member
  • Customer needs response via diverse tie-up cards
  • Service diversification leveraging group consolidated subsidiaries
  • Strategic expansion in corporate cards and guarantee business
  • Regionally rooted sales and nationwide branch network
  • 対応 to advanced digital and contactless payments
  • Sustainable management and compliance emphasis
  • Cost structure improvement and efficiency gains from management reforms
  • Synergy promotion within major financial group
  • Flexible product development and speed to market changes
  • Maintaining competitive edge in used car market specialized loans
  • Diverse customer touchpoints through wide industry partnerships

Threats

  • Concerns over loan loss provisions from rising credit risk
  • Strengthening trends in financial regulations like the Money Lending Business Act
  • Intensifying customer acquisition competition from rivals
  • Technology adaptation burden from rapid cashless shift
  • Brand damage risk from declining social credit
  • Revenue decline from reduced personal consumption in economic downturns
  • Enhanced FSA supervision due to yakuza lending issues
  • Increasing risk of non-performance on credit guarantee obligations
  • Risk of failure in new business investments
  • IT security risks and data breaches
  • Potential customer base shrinkage from demographic changes
  • Administrative penalties and social sanctions from scandals

Innovations

2024: Acquisition of Aeon Product Finance

Overview
Acquired related company from AEON Financial Service to expand business.
Impact
Contributes to increased product range and strengthened customer base

2023: Expansion of online lending services

Overview
Strengthened online lending services for SMEs in collaboration with JCB and others.
Impact
Achieved new customer acquisition and improved lending efficiency

2022: Enhancement of digital payment platform

Overview
Advanced support for contactless IC card payments such as MasterCard Contactless.
Impact
Improved merchant convenience and increased payment volume

2021: Promotion of big data utilization

Overview
Utilized AI to enhance customer credit evaluation and marketing precision.
Impact
Achieved reduced credit risk and improved customer satisfaction

2020: Launch of smartphone app

Overview
Launched smartphone app integrating points management and card services.
Impact
Successfully improved customer engagement

Sustainability

  • Strengthened personal information protection system and acquired Privacy Mark
  • Business improvement measures to exclude antisocial forces
  • Promotion of environmentally considerate offices and sale of building co-ownership
  • Paperless promotion and resource savings through digitalization
  • Implementation of regional social contribution activities and educational support programs