Tomony Holdings

Basic Information

Stock Code
8600
Industry
Banking
Category Detail
Banks
Prefecture
Kagawa Prefecture
Establishment Year
April 2010
Listing Year
April 2010
Official Website
https://www.tomony-hd.co.jp/
TSE Information
TSE Information
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Other Companies
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Overview

Tomony Holdings is a bank holding company established in 2010 with strengths in the Shikoku and Kinki regions, providing community-focused financial services through its subsidiaries, Tokushima Taisho Bank and Kagawa Bank.

Current Situation

Tomony Holdings achieved consolidated sales of approximately 79.8 billion yen in the fiscal year ended March 2023, maintaining a stable business base centered on Shikoku and the Kinki region. It holds Tokushima Bank, Kagawa Bank, and Taisho Bank as subsidiaries, proactively expanding into the Kinki region in anticipation of declining regional funding demand. The acquisition of Taisho Bank has expanded outstanding loans in the Osaka area, yielding results in operational efficiency improvements and business matching. Integration of core banking systems is enhancing administrative efficiency and reducing costs. The consolidated number of employees is 2,237, with a corporate mission to support sustainable regional economies, strengthening support for SMEs and housing/real estate sectors. Moving forward, it will focus on mergers of subsidiary banks and expansion of its sales base in the Kinki region, aiming to revitalize the regional economy and improve profitability.

Trivia

Interesting Facts

  • Pioneer among regional banks as Shikoku's first cross-border bank integration
  • Expanding beyond regional bank scope through entry into Kinki region
  • Acquired Mitsubishi UFJ-affiliated Taisho Bank to strengthen Kinki base
  • Achieved core system integration with NEXTBASE system introduction
  • Fostering employee unity through employee stock ownership association
  • Named Tokushima Youth Center as 'Tokugin Tomony Plaza'
  • Considering transition to company with nomination committee
  • Manages operations as a bank holding company under the Banking Act
  • Tokushima Bank and Taisho Bank merged in 2020 to form Tokushima Taisho Bank
  • Promoting multi-regional expansion strategy anticipating slowdown in regional funding demand
  • Taisho Bank acquisition expanded Kinki base from 15 to about 30 branches
  • Collaborates with EY ShinNihon LLC for auditing
  • Exploring partnerships and M&A candidates with major regional banks
  • Focusing on management support for regional SMEs
  • Improving customer satisfaction through financial product development tailored to regional characteristics

Hidden Connections

  • Taisho Bank acquisition resulted from aligned interests following relationship adjustments with Mitsubishi UFJ
  • Historical strong ties in people, goods, and money between Tokushima and Kinki effectively promote business matching
  • Next-generation core system based on Hitachi's NEXTBASE for regional banks
  • Employee stock ownership association is a key initiative for community-focused management
  • Acquired naming rights for Tokushima Youth Center to balance regional contributions and brand strengthening
  • Multiple subsidiaries cover wide range from lending, credit guarantees, to card issuance
  • Holding company structure contributes to flexible management and risk control for bank group
  • Integration of Osaka's second regional bank Taisho Bank marks Shikoku regional banks' first full-scale Kinki entry

Future Outlook

Growth Drivers

  • Expansion and market share growth of sales base in Kinki region
  • Addressing diverse financial needs of regional SMEs
  • Operational efficiency and customer convenience improvements through IT system renewal
  • Accelerating hybrid business development for regional economic revitalization
  • Increasing demand for ESG-compliant financing and green loans
  • Expanding high-value-added services in response to regional population decline
  • Strengthening proposals for sustainable asset management products
  • Acquiring younger customers through digital channels
  • Service innovation through fintech collaborations and partnerships
  • Local industry business matching through regional collaborations

Strategic Goals

  • Achieve 1 trillion yen in outstanding loans in Kinki region
  • Complete DX promotion through full core system renewal
  • Expand ratio of ESG-compliant financial products to over 50%
  • Achieve over 80% customer satisfaction with community-focused services
  • Contribute to maintaining and creating regional employment through SME support
  • Expense reductions through management integration of group banks and subsidiaries
  • Achieve over 70% digital banking usage customer ratio
  • Establish environmentally considerate lending as national regional bank model case
  • Strengthen governance and ensure transparency as holding company
  • Promote ongoing social contribution activities to regional society

Business Segments

Financial Services for SMEs

Overview
Various financial services aimed at funding and growth support for local SMEs.
Competitiveness
Detailed support for management challenges through community focus
Customers
  • SME Manufacturing Companies
  • Wholesale Businesses
  • Retail Businesses
  • Construction Companies
  • Service Businesses
  • Local Venture Companies
  • Chamber of Commerce Member Companies
  • Agriculture, Forestry, and Fisheries Related Companies
Products
  • Working Capital Loan
  • Equipment Investment Loan
  • Bill Discounting
  • Loans Guaranteed by Credit Guarantee Corporation
  • Loans Utilizing Public Funds
  • Cash Flow Support Consulting
  • Cashless Payment Introduction Support

Housing and Real Estate Related Finance

Overview
Addresses funding needs for individual home purchases and real estate businesses.
Competitiveness
Top-class regional expertise in housing loans
Customers
  • Individual Home Buyers
  • Real Estate Developers
  • Rental Management Companies
  • Renovation Contractors
Products
  • Housing Loan
  • Real Estate Collateral Loan
  • Renovation Loan

Corporate Payment Solutions

Overview
Diverse services meeting corporate funding management and payment needs.
Competitiveness
Payment convenience through group card company collaboration
Customers
  • SME Corporations
  • Medical Corporations
  • School Corporations
  • NPO Corporations
Products
  • Corporate Credit Card
  • Debit Card
  • Direct Debit Service
  • Electronic Money Payments

Leasing and Equipment Funding

Overview
Provides funding support for business equipment investments, contributing to management stability.
Competitiveness
Strengthened group collaboration via Tomony Lease
Customers
  • Manufacturing Industry
  • Store Owners
  • Service Industry
Products
  • Equipment Lease
  • Various Finance Leases

System Operation Support

Overview
Services supporting stable operation of IT systems for group banks.
Competitiveness
Advanced maintenance and operation of Hitachi's NEXTBASE system
Customers
  • Companies under Tomony Holdings
  • Related Financial Institutions
Products
  • Core Business System Operation
  • IT Infrastructure Development
  • System Integration Support

Competitive Advantage

Strengths

  • Strong sales base in Shikoku and Kinki regions through community focus
  • Scale expansion through integration of multiple banks
  • Improved administrative efficiency via system integration
  • Group-wide deployment of diverse financial services
  • Stable financial position and capital scale
  • Aggressive market expansion strategy in Kinki region
  • Proven track record in supporting regional SMEs
  • Management flexibility through holding company structure
  • Strong funding supply from extensive customer base
  • Lending support in collaboration with credit guarantee corporations

Competitive Advantages

  • Succeeded in Shikoku's first cross-border integration as a regional bank
  • Expanded sales base by acquiring Taisho Bank in Kinki region
  • Advanced IT integration by adopting Hitachi's NEXTBASE system
  • Synergistic effects from network of three banks in Tokushima, Kagawa, and Osaka
  • Improved customer satisfaction through business matching
  • Diversified strategy anticipating regional economic decline risks
  • Fostering employee unity through employee stock ownership plan
  • Securing customer loyalty with community-focused services
  • Pioneering expansion into Kinki beyond regional bank framework
  • Strengthened governance as a company with audit and supervisory committee

Threats

  • Declining regional funding demand due to population decrease
  • Risk of prolonged low interest rate environment in financial industry
  • Share pressure from intensified competition with major banks
  • Operational risks and system failures from IT integration
  • Increased credit loss risks due to economic fluctuations
  • Intensified competition with existing regional banks in Kinki
  • Increased business burden from strengthened regulations
  • Competition from digital banks and fintech entrants
  • Uncertainty from changes in regional economic industry structure

Innovations

2023: Merger of Tokushima Taisho Bank and Taisho Bank Completed

Overview
Implemented merger of both banks to improve regional efficiency and reduce costs.
Impact
Improved profitability through administrative efficiency and expense reductions

2022: Core System NEXTBASE Renewal Plan Launched

Overview
Promoting enhancement of integrated core system functionality and stability.
Impact
Reduced system failures and improved service quality

2021: Digital Banking Enhancement Initiatives Started

Overview
Enhancing smartphone app functions and expanding online services.
Impact
Contributed to improved customer convenience and acquisition of younger customers

2020: My Number Compatible System Introduced

Overview
Achieved legal compliance and advanced customer information management.
Impact
Balanced compliance strengthening and operational efficiency improvements

2024: Strengthening Corporate Services for Kinki Region

Overview
Expanding corporate consulting and equipment investment support.
Impact
Succeeded in acquiring new sales bases and expanding transactions

2023: Strengthened Collaboration with Credit Guarantee Corporation

Overview
Enhanced SME support by improving loan guarantee schemes.
Impact
Achieved increased lending and reduced credit costs

2022: Environmentally Considerate Lending Program Introduced

Overview
Launched green loans to promote sustainable investments.
Impact
Improved trust by supporting regional companies' environmental initiatives

2021: AI Customer Analysis System Introduced

Overview
Began utilizing AI for customer financial needs analysis and optimal proposals.
Impact
Achieved simultaneous improvements in sales efficiency and customer satisfaction

2020: Online Loan Application System Launched

Overview
Enabled rapid response through online loan procedures.
Impact
Promoted new customer acquisition and increased loan applications

2024: Diversified Funding through Enhanced ESG Evaluation

Overview
Promoting funding corresponding to environment, society, and governance.
Impact
Improved investor evaluation and cost reduction effects

Sustainability

  • Providing financial services emphasizing regional economic revitalization
  • Promoting environmentally considerate lending programs
  • Supporting regional SMEs and promoting sustainable development
  • Active participation in regional volunteer activities
  • Reducing paper resources through digitalization promotion