Briefing Session on Mid-Term Business Plan2016/04/07 · April 7, 2016 Briefing Session on Mid-Term...
Transcript of Briefing Session on Mid-Term Business Plan2016/04/07 · April 7, 2016 Briefing Session on Mid-Term...
April 7, 2016
Briefing Session on Mid-Term Business Plan
Presenter: Akihiko Fukai, Executive Managing Director
The Gunma Bank, Ltd.
I. Overview of the Previous Mid-term Business Plan (V-Plan)
Overview of the Previous Mid-term Business Plan ……………………………………………P. 1Main Outcomes of the Basic Strategies ……………………………………………P. 2Changes in Key Indices ……………………………………………P. 3(Reference) Numerical Review ……………………………………………P. 4
II. Framework of the Mid-term Business Plan
Surrounding Environment and Business Issues ……………………………………………P. 5Framework of the Mid-term Business Plan ……………………………………………P. 6Direction of Strategies ……………………………………………P. 7Basic Policies ……………………………………………P. 8Numerical Targets ……………………………………………P. 9Focused Staff Deployment in Key Areas ……………………………………………P. 10Breakdown of Changes to Profit Figures of Numerical Targets …………………………… P. 11
III. Key Measures
Basic Strategy and Key Measures ……………………………………………P. 12Proactive Measures for Regional Revitalization ……………………………………………P. 13Measures Based on evaluation of customers business potentials …………………………P. 14Reinforcement of Consulting-based Sales (Corporate Customers) …………………………P. 15Reinforcement of Consulting-based Sales (Individual Customers) …………………………P. 16
……………………………………………………………………P. 17
BPR Promotion and Productivity Improvement through the Use of IT ………………………P. 18Innovation of Work Styles and Support for Every Individual Employee …………………P. 19
Overhaul of Sales Structure Based on RegionalStrategy and Bolstering of Channel Alliance
<Table of Contents>
Value for Tomorrow
The Gunma Bank, Ltd.
I. Overview of the Previous Mid-term Business Plan (V-Plan)
Value for Tomorrow
The Gunma Bank, Ltd.
Enhancement of the function for corporate customer
consulting service
Actively offered attractive proposals to customers
-1-
Overview of the Previous Mid-term Business Plan
V-Plan April 2013 to March 2016
–Evolution into a value-proposal bank–
Aimed for enhancement of profitability while maintaining growth potential and status of
soundness
Value-added proposals Expansion of market
Expansion of retail customer marketing and direct
banking
Improvement in the value-added proposal
capabilities
Reinforcement of management
foundation and pursuit of management
eff iciency
Emphasis on staff development and reinvigoration of
organization
Contribution to the regional community
Sales Strategies Management Foundation Strategies
Strategies for corporate customers
Strategies for individual customers
Regional and channel strategies
Market investment strategies
Risk management strategies
IT/Operations strategies
Management/capital strategies
Organization/HR strategies
Contribution to regional community
4 Basic Policies
9 Basic Strategies
Basic Policies and Strategies Previous Mid-term Business Plan
Value for Tomorrow
The Gunma Bank, Ltd.
Main Outcomes of the Basic Strategies
Continuing to open branches in promising markets
(Dec. '14 Ogikubo Branch, Oct. '15 Kaw asaki Branch Loan Station, May '16 Kasai Branch Loan Station (planned))
Increased investment in JGB for rolling effects and in pass-through MBS (guaranteed by GNMA)
Deployed a designated representative for lending to non-residents, aiming to build up assets w ith high profit margins of interest rates
Launched "IT Strategy Office" to establish "IT investment policy." Launched "Gungin CSIRT" in the cyber security f ield
Reinforcement of risk management by preparing to respond to RCSA and opening the "Operational Risk Management Section"
Support of employee development by holding the "Gungin Financial College" and the introduction of the "brow sing at home system"
Promotion of w omen in the w orkforce by setting up "Women in the Workforce Promotion Committee" and "Women-focused teams"
Contribution to regional community
Man
agem
ent
Foun
datio
n St
rate
gies
IT/Operation strategy
Risk management strategy
Organization/HR strategy
Management/capital strategy
Sale
s st
rate
gies
Reinforcement of cost management through the new "Cost Management Section" and the introduction of "Cost Management System" and "ProcurementPlans"
Enhancement of individual marketing functions by introducing/expanding the "EBM system," "portfolio analysis system," and "mobile information devices"
Launch of "Smile Partner," a card loan product, partnered (student/home improvement) loans, and "Gungin online loans," an Internet-based loan product
Working on streamlining operational processes through "BPR Implementing Project" and the "Loan Operation Streamlining Project"
Strategies for corporatecustomers
Strategies for individual customers
Regional/channel strategy
Assistance for corporate rehabilitation by external entities like SME Business Rehabilitation Support Co-operative and REVIC, as w ell as DDS and ABL
Market investment strategy
Capital management by issuance of euro/dollar-denominated convertible bonds and responding to Basel III and other regulations
Taking advantage of the registration of Tomioka Silk Mill and related sites as w orld heritage sites, and the Volleyball team being promoted to the V-League
Enhanced support system for regional revitalization through cooperation betw een the regional revitalization promotion manager and the HQ
Offering information by the "Gunma Bank Management Club," holding the "Gunma Bank Management School," information dissemination and assistancefor applications by the "Help Desk for Subsidy," start of the "SME Revitalization Support Service" and other services to help solve companies' issues
Bolstering support for companies' overseas expansion, revamping the overseas sites netw ork in Asia, sending the "Investment EnvironmentInspectorate" to the Philippines and Vietnam. Enhancement of the corporate IB forex function, reinforced hedging proposals by reintroducing currencyderivatives w ith knock-out provisions
-2- Value for Tomorrow
The Gunma Bank, Ltd.
18.9 18.221.6
25.5
20.6 19.8
25.9 27.5
5.0%4.4%
5.3% 5.3%
FY 2012 FY 2013 FY 2014 FY 2015
34.2 33.7 33.9 34.0
58.9 57.8 58.3 57.6
93.2 91.5 92.2 91.6
63.3% 63.2% 63.2% 62.9%
FY 2012 FY 2013 FY 2014 FY 2015
1,553.2 1,588.7 1,691.6 1,786.0
1,650.4 1,777.8 1,912.4 2,032.0
3,203.6 3,366.5 3,604.1 3,818.0
+ 5.1% + 7.1%+ 5.9%
FY 2012 FY 2013 FY 2014 FY 2015
Retail loans
Core business gross profit
SME
Individuals
Core business net profit
Expenses
Core business
profit
OHR
Retail
Net income
ROE
Consolidated
Stand-alone
3,022.8 3,220.9 3,548.5 3,632.8
11.5%11.7% 11.7%
12.2%
FY 2012 FY 2013 FY 2014 FY 2015
Tier 1 ratio
Tier 1
Risk assets
Changes in Key Indices
-3-
(Unit: billion yen)
(Projection)
(Projection)
(Projection)
(Projection)
349.9 378.6 417.6 445.7
Value for Tomorrow
Consolidated common equity Tier 1 ratio
The Gunma Bank, Ltd.
Retail loan balance at year-end
Loans to individuals
・ The retail loan balance grew across all areas in both SME and individual sections, greatly exceeding the targets.�
・ Newly opened branches contributed greatly to the growth in retail loans�.
Core business gross profit
Core business net profit
Net income
However, net income greatly exceeded the target owing to the decrease in credit cost.
Core business net profit ROA
OHR
Core business net profit ROA narrowly missed the target.
Slightly below target due to the decrease in core business gross profit.
The ratio remained around the 12% level owing to the increase in risk assets from the stable growth in loans.
%
Status ofsoundness
index
13.5 %approx. 12.2 % -1.3
Profit margins of interest rates for loans contracted due to the continued low-interest environment exceeding expectations. Wereduced the bond portfolio and emphasized retail loans, the international division, and fee business, but core business net profitfailed to reach the target.
Consolidated common equity and other Tier1 capital ratio
%
bil yen
%
%approx. 62.9 % 0.9Efficiencyindices
0.5 %approx. 0.47 % -0.03
62
Profitabilityindices
bil yen
36 bil yen 34.0 bil yen -2.0 bil yen
96 bil yen 91.6 bil yen -4.4
19 bil yen 25.5 bil yen 6.5
bil yen
1,932 bil yen 2,032 bil yen 100 bil yen
bil yen 3,818 bil yen 298 bil yen
1,588 bil yen 1,786 bil yen 198 Loans to SMEs (excl. strategic branches)
ItemPlan's final year (FY 2015)
Numerical targetProjection
Difference
Growth potentialindices
3,520
(Reference) Numerical Review
-4- Value for Tomorrow
The Gunma Bank, Ltd.
II. Framework of the Mid-term Business Plan
The Gunma Bank, Ltd.
Value for Tomorrow
Surrounding Environment and Business Issues
Surrounding environment Business issues
-5-
* “Fin-tech” is a combination of “finance” and “technology” and mainly refers to innovative financial services that make active use of IT.
While there is uncertainty about the world economy, the domestic economy continues on a moderate recovery trend.
Quantitative and qualitative easing with negative interest rates. Inflation rate likely to stay subdued from the economic outlook, and easing monetary policies likely to continue.
Declining regional population, rising gap between regions and concentration in metropolitan areas. Hopes for women and older people to enter into the workforce as working population declines
Gunma offers an advantageous business environment. Hopes for development of growth industries. Advantageous location adjacent to the Tokyo metropolitan market with growth prospects
Increasing needs for consulting-based sales. Diversified needs in transaction methods, transaction hours and more use of IT
Achieving larger business size through reorganization of regional financial institutions. Entry into banking from other fields. Expansion of Japan Post Bank (e.g. increase of deposit limit)
Economy
Monetarypolicy
Social structure
Region
Customerneeds
Competition
Organization/governance
Regulation
Increase in value added through Fin-tech, spread of smartphones and tablet PCs, demand for strengthened cyber securityTechnology
Basel regulation, extension of the operating hours of the Zengin System, "My Number" system, amendment of Act on Prevention of Transfer of Criminal Proceeds, changes to the financial group regulations, increase in the consumption tax and introduction of a reduced tax rate
Expecting productivity improvements through operational streamlining. Demand for improved governance and ROE-based management. Increased awareness of work-life balance.
Contribution to regional revitalization and nurturing of and support for regional industry
Bolstering retail loans to respond to local financial needs
Securing of various revenue sources through implementation of value-added proposals
Use of Fin-tech and enhancement of cyber security
Reinforcement of group capabilities with a view to increasing ROE
Enhancement of the status of governance and risk management
Development and deployment of personnel with high levels of expert knowledge
Increased job satisfaction and promotion of diverse personnel
The Gunma Bank, Ltd.
Value for Tomorrow
: 2016 Mid-term Business Plan “Value for Tomorrow,” or value-added proposals for tomorrow
Name
Plan period
What we aspire to be
Strategic themes
: April 2016 to March 2019 (three years)
: A regional financial group that supports the regional community and customers into the future and that grows together with them
Internal name: VT-Plan
Framework of the Mid-term Business Plan
-6-
Inheriting "value-added proposals," which is the basic concept of 2013 Mid-term Business Plan "V-Plan," we are aiming to construct a sustainable business model for tomorrow by creating new revenue opportunities, and have named the plan "Value for Tomorrow." Taking the first letters, the plan will be internally called the "VT- Plan."
We will face squarely the diverse needs of the regional community and customers and provide truly helpful financial solutions, thereby aiming to become a regional financial group that takes a step forward together with them to the next stage.
We will continue with our growth strategy centering on bolstering retail loans and will further develop value-added proposal actions, thereby helping the regional community and customers to grow.
Further development New endeavors
<Continuation of the growth strategy and further development of value-added proposals>
<Expansion of business domains and deployment of group capabilities>
Through the reinforcement of fee-based businesses by way of bank-brokerage collaborations, the overhaul of the consulting-based sales structure, and the strategic use of Fin-tech, we will aim to secure diverse revenue sources as a regional financial group.
The Gunma Bank, Ltd.
Value for Tomorrow
Direction of Strategies
-7-
Establishment of a sustainable
business modelValue-added proposalsfor tomorrow
Value for Tomorrow(VT-Plan)
Apr. 2016 to Mar. 2019
<With an eye toward 10 years from today>
Further development
Continuation of growth strategy and further development of value-added proposals
A regional financial group that helps the regional community and customers look forward to tomorrow and to grow together
Expansion of business domains and deployment of group capabilities
New endeavors
Two strategic themes
What we aspire to be
<Securing diverse revenue sources>
Reinforcing brokerage business through bank-brokerage collaborations
Overhaul of the consulting-based sales structure
Strategic use of Fin-tech
Actual measures under "new endeavors"
The Gunma Bank, Ltd.
Value for Tomorrow
Basic Policies
Basic policies To become the group of companies that we aspire to be
-8-
New challenges
Proactiv e measures f or regional rev italization
Pursuit of v alue-added proposals and bolstering
of prof itability
Strengthening the management f oundation and deploy ment of group
capabilities
Innov ation in work sty les and support f or each indiv idual employ ee
Regional revitalization strategy
Strategies for corporate customers
Strategies for individual customers
Regional/channel strategy
Market investment strategy
IT/Operations strategy
Risk management strategy
Management/capital strategy
Organization/HR strategy
Contribution to regional community
A regional financial group that helps the regional community and customers look forward to tomorrow and to grow together
Further development
Proactive measures for regional revitalization
Pursuit of value-added proposals and bolstering of profitability
Strengthening the management foundation and deployment of group capabilities
Innovation in work styles and support for each individual employee
We will strengthen the management foundation toward providing a broad range of financial services while streamlining operations and enhancing internal control such as governance. We will also aim to increase the corporate value as a group by working together to enable each company to demonstrate their capabilities.
We will endeavor to foster an active corporate culture where each employeethinks independently and works proactively through innovation of work styles for a better work-life balance and the development and deployment of personnel with expert knowledge.
We will implement customer-centered, consulting-based sales based on customer relations. We will also bolster the content and convenience of financial solutions through strengthening key organizations and using fin-tech, with a view to reinforcing loan management and the fee-based business.
We look to live up to community expectations through active participation in regional revitalization by the implementation of a regional comprehensive strategy and measures for regional economy reactivation by way of enhanced support for companies.
Management foundation strategiesSales strategies
The Gunma Bank, Ltd.
Value for Tomorrow
Numerical Targets
Numerical targets for the plan’s final year (FY 2018)
-9-
Retail loans outstanding at year-end
Non-interest business profit (consolidated)
Net income (consolidated)
ROE (consolidated)
OHR (consolidated)
Common equity Tier 1 ratio (consolidated)
Item Target
4,350.0 Bil yenGrowth potential index
FY2015 estimate
Bil yen
12
5.3
60.8 %
Profitability indices
Status of soundness index
Efficiency index
Bil yen18.0
65 % level
5 % level
28.0 Bil yen
Bil yen
Bil yen
% level
3,818.0
15.0
27.5
%12.2
%
(Glossary) :
:
:
:
:
:
Retail loans outstanding at year-end
Non-interest business profit(consolidated)
Net income (consolidated)
ROE (consolidated)
OHR (consolidated)
Common equity Tier 1 ratio(consolidated)
Net income attributable to the parent company's shareholders
Sum of SME (excl. local governmental entities and Tokyo/Osaka branch accounts) and individual loans
Sum of service fee income and other business profit minus losses or gains from bonds
ROE (consolidated) = Net income (consol.) / Average shareholders' capital (consol.)
OHR (consol.) = Operating expenses (consol.) / (Gross business profit (consol.) - Losses or gains frombonds (consol.))
Common equity Tier 1 ratio (consol.) = Common equity Tier 1 (consol.) / Risk assets (consol.)
The Gunma Bank, Ltd.
Value for Tomorrow
Focused Staff Deployment in Key Areas
Numerical targets and key measures Measures for focused staff deployment
-10-
Loans to SMEs
*Excl. local government entities,Tokyo/Osaka Branch accounts
Loans to individuals
Unsecured consumerloans
Marketing capability fordeposit financial assets
(consolidated)
Retail loans outstanding at year-
end 4,350 bil yen (Plan's final year)
Non-interest business profit (consolidated)
18 bil yen(Plan's final year)
Bolstering corporate service fees
Boosting foreign exchange service revenues
Promoting protection-oriented insurance
Boosting base service commissions
Setting branch offices that promoteretail loans
Overhaul of sales structure based onregional strategy
Efficient promotion of housing loans at loan stations
Bolstering of the team to promoteapartment loans
Improvement of products
Enhancement of non-face-to-faceservices
Bolstering asset management-oriented sales
Establishment of Gungin Securities and bank-brokerage collaboration
○ Establishment of the team to promotecorporate customer consulting
○ Providing optimal solutions based on evaluation of customers business potentials
○ Establishment of loan/insurance consulting plaza
○ Fostering core customer relationships
Streamlining existing branches
Overhaul of HQ organization
Promotion of BPR
Revamping HR systems
Promotion of diversified personnel
Development and deployment ofpersonnel with expert knowledge
Organizational/operational efficiency
Enhancing staff capabilities by supporting and promoting their
activities
The Gunma Bank, Ltd.
Value for Tomorrow
0.2
15.0
18.0
1.1-0.9
0.2
Mar. '16 Mar. '19
0.20.5
0.2
1.5
Base service commissions
Corporate service fees
Derivatives
Marketing capability for deposit f inancial
assets
Gungin Securities
Gunma Credit Guarantee Service expenses
(Guarantee fees)
Gungin Leasing
Mar. '19
-5%
-1.5
Mar.'16
+5% +2.5% +8% +20%
56.5
55.5
1.8-2.3
1.3
1.7
SMEs Housing loans
Apartment loans
Unsecured loans
V: +4.0 (Increase in outstanding annual 2.7%)R: -3.0 (Decrease in profit margin of interest rates -0.06%)
Change in outstanding
(annual %)
Large/second-tier,
gov ernment entities
Breakdown of Changes to Profit Figures of Numerical Targets
-11-
(Unit: billion yen)
Deployment of group capabilities <Interest scenario>
ST rates to remain low. No change in ST prime rate.
LT rates to rise moderately in response to stimulus measures (Feb. ’16: 0.04% Apr. ’19: 0.82%)
Interest on domestic loans (+1.0) Non-interest business profit (consolidated ) (+3.0)
The Gunma Bank, Ltd.
Value for Tomorrow
III. Key Measures
The Gunma Bank, Ltd.
Value for Tomorrow
Basic Strategy and Key Measures
-12-
Regional revitalization strategies IT/Operation strategies
Active participation in regional revitalization Productivity improvement through BPR promotion Enhanced company support for reactivation of regional economy Strategic use of IT and improvement of system infrastructureMeasures based on business viability Reduction of operational errors by ensuring proper operations
Strategies for corporate customers Risk management strategies
Strengthening consulting-based sales for corporate customers Strengthening of compliance structure
Reinforcing SME loans and non-interest business profit Bolstering management structures, such as customer protection
Expansion of customer base through indiv idualized management and f ostering of core customers Increasing the sophistication of the risk management structure
Support for overseas expansion and bolstering foreign exchange service revenues Strengthening of the cyber security management structure
Bolstering support for management improvement and rehabilitation Enhancement of the risk management structure
Bolstering and streamlining of business with local government entities Increasing the sophistication of the internal control structure
Strategies for individual customers Management/capital strategies
Strengthening consulting-based sales for individual customers Increasing the sophistication of the corporate governance structure
Implementation of asset-management-based sales through bank-brokerage collaborations Increasing the sophistication of the revenue management structure
Expansion of customer base through marketing implementation and f ostering of core customers Bolstering the capital management structure
Promotion of housing loans and bolstering apartment loans Deployment of group capabilities and measures to improve corporate value
Bolstering unsecured consumer loans Responding to legal/regulatory changes
Reinforcing funding base by bolstering deposits by individuals
Organization/HR strategiesRegional/channel strategies
Promotion of innovation in work styles for a better work-life balance
Overhaul of sales structure based on regional strategy Efforts to promote the activities of diverse personnel
Active use of fin-tech and bolstering of channel collaborations Development and deployment of personnel with expert knowledge
Improvement in customer satisfaction and loyalty
Contribution to regional communityMarket investment strategies
Efforts to promote environmental protection and social contributions
Enhancing investment capabilities by diversifying investment/loan targets
Bolstering foreign currency funding measures and cash flow stability
Sales strategies Management foundation strategies
The Gunma Bank, Ltd.
Value for Tomorrow
- Participation in council of adv isors
- Help implement regional comprehensiv e strategy
- Industry clusters through collaboration betweenindustry , academia, gov ernment, f inancialcommunity and labor
The Bank's Regional revitalization promotion organization
Local governments
Industry
Business associations
Universities and research institutes
Labor organizations
Mass media
Collaboration
Size and profitability
We recognize that regional revitalization is important from the perspective of maintaining and reinforcing our operating base.
Active participation in regional economic revitalization
Bolstering of support for companies with a view toward regional revitalization
We will work to reactivate the regional economy by efforts to support local companies, such as helping start-ups and fostering growth industries.
Time
Help solve management issues in accordance with each individual company's stage
Business launch
GrowthSlowdown of
growth
Decline and revitalization
Securing personnel w ith expert know ledge and funding
Improvement of productivity, f inancing for growth
Business management, strengthening f inancial position, business conversion, M&A, company split
Radical business revitalization(Reduction of excessive debt, restructuring of
business)
Top manager(Director in charge)
Branch in charge of local governments
Branch in charge of local governments
Branch in charge of local governments
Promotion manager(Manager in charge of regional
revitalization)
Promotion contacts
We position the general manager of branches in charge of local governments as regional revitalization promotion managers, and look to foster smooth collaboration with local governments.
We will actively help SMEs with business succession with a view to ensuring local employment and economic restructuring.
Regional revitalization
Value-added proposals
Management foundation
Support for active
engagement
Proactive Measures for Regional economic revitalization
-13-
The Gunma Bank, Ltd.
Value for Tomorrow
Upon completing the evaluation of customers business potentials, thebranch determines the business stance that takes account of thecustomer's management issues, and introduces a response andmanagement mechanism that is continuous and consistent with HQ
Implementing loans that are based on an evaluation of customersbusiness potentials, and which do not rely excessively on collateral orguarantees
Ascertaining business status through contact w ith customers
Gathering information concerning trends in the industry and regional
economy
Utilizing external expertise such as assessments and analysis
methods and application expertise
Implementation of evaluation of customers
business potentialsProposal of optimal
solutions
We identify management issues and report on them to the customer.We provide optimal
solutions, including various financial services and loans.
Support for a wide range of manufacturers
Number of evaluation of customers business potentials:1,000 in three years
Finished product maker
We assess the SMEs and second-tier businesses, centering on clusters of manufacturers in the region.We evaluate the growth potential of businesses based on qualitative analysis and ascertaining/analysis of business models.We will contribute to the growth and development of customers and the regional economy through appropriate risk-taking that does not rely excessively on guarantees or collateral.
Industry-by-industry evaluation of customers business potentials by HQ
Company-by-company evaluation of customers business potentials by branches
Tier 1
Tier 2
…
Analysis and assessment through analysis of distribution channels,operational flow and industryWe emphasize manufacturers that
are clustering in Gunma Prefecture.
Review ratings, policies, and plans accordingly as information is updated
Company rev iew Sales activ ity, proposals rev iews, middle management
Inf ormation obtained through daily activ ities
RatingsQualitativ e analy sis
Business policy
Business plan and its promotion
Structuring and rev iewing proposals
Ascertaining changes in
circumstances
Support by HQ (Inspection & Audit, Corporate Banking, Financial Markets & International, Business Planning & Administration Departments)
Updating and accumulating information in a database that can be viewed at a glance
Measures Based on evaluation of customers business potentials
-14-
Regional revitalization
Value-added proposals
Management foundation
Support for active
engagement
The Gunma Bank, Ltd.
Value for Tomorrow
Identifying customer's business issues and proposing solutions based on business assessment Bolstering support for customers through collaboration with special organizations Active financing of growth areas (medical and nursing-care services, environment and energy, food and agriculture) Expansion of customer base through company-by-company management and promotion of core customers
Helping customers go global and expand their overseas distribution networks by collaborating with overseas offices and other banks Bolstered the overseas support network, opened the Bangkok Representative Office Active proposal of forex functions in the online banking service for corporate customers as well as currency derivatives
Close monitoring of rehabilitation customers and continued support for the achievement of the rehabilitation plan Proactive support for customers with ratings-related concerns
In addition to the function-focused Promotion Managers at HQ, we have appointed Corporate Consulting Sales Managers. We have created a one-stop support structure linked with branches, to roll out value-added proposals extensively and meticulously, thereby earnings due revenues.
Enhanced support for management improvement and business
Bolstering of consulting-based sales
Helping companies expand overseas and reinforcing foreign exchange
transactions
Establishment of the team to promote corporate consulting
Through the use of the consulting function aimed at solving customer company's issues, we meet funding needs and provide optimal solutions, thereby increasing non-interest business profit.
Start-up Grow th Maturity Revitalization
Gungin Leasing
Funding
Smooth f unding Gunma Medical-Industry Collaboration Rev italization Fund Gunma Bank Business Support Fund
Sy ndicate loans Priv ate placements
Business matching Helping go global and expand overseas sales networksExpansion
Gungin Business Net Banking Gungin Densai Net Convenient store payment service Fee-based money delivery and collection serviceRationalizing
Gunma Bank Management Club SME Revitalization Support Service Help Desk for SubsidyBusiness strategies
Business succession M&A
Support for entrepreneurs
Gungin Business Support Grand Award
More
MoreLess
Less Number of cross selling dealsBu
sine
ss v
olum
e(
Dep
osits
and
loan
s) Increase volumes of deposits and loans
Increase in cross-selling
Growthstage
Promotion of core customersMain solutions appropriate for growth stage
Work to spread value-added proposals and aim to strengthen relations and customer-by-customer
Core customers
Reinforcement of Consulting-based Sales (Corporate Customers)
-15-
Value-added proposals
Management foundation
Support for active
engagement
Regional revitalization
The Gunma Bank, Ltd.
Value for Tomorrow
* Fiduciary duty is broadly defined as the wide range of roles and responsibilities held by one who performs specified duties in fulfillment of trust by others.
Bank customers
Brokerage subsidiary High risk
Low riskBo
lster
ing
prod
uct
sele
ctio
n
Appealing to a wide range of customers
Mass market, asset Wealthy
Major products and services according to the life stage Bolstering proposal capabilities through bank-brokerage collaborations
We aim to increase lifetime transactions by utilizing consulting functions in accordance with the life stage.We work to enhance marketing sophistication to provide services by optimal channels at the optimal time.
Enhancing asset management proposal capabilities and implementation of fiduciary duties Bolstering proposal capabilities to the wealthy through revamping estate management operations Expanding customer base through proposals of NISA (and junior NISA) and savings-type investment trust Increased contact with customers by opening Loan and Insurance Consulting Plaza
Bolstering of consulting-based sales Establishment of Gungin Securities
To be established in February 2016 and to start business in October. We will actively approach customers, centering on the wealthy, by proposing a wide array of products including foreign bonds and structured bonds. We will look to bolster employees' specialized knowledge and proposal skills through personnel exchange with the Bank.
Enhance product appeal in response to the needs of customers and businesses Set up an effective promotion structure for apartment loans
Promotion of housing loans and bolstering apartment loans
Enhancement of product appeal and bolstering of non-face-to-face servicesBolstering unsecured consumer
SeniorYouth Asset formationLife stage
Event
Asset management Small-lot investment (NISA) Savings-oriented
insuranceInv estment trust Securities account Estate management
Protection-oriented insuranceInsurance
Salary account, pension crediting, bank transfer, credit card, online bankingSavings and settlement
Loans Auto loan Housing loan Student loan Home improvement loan
School Buys a home
Child starts college
Rev erse mortgageCard loan
RetirementBirth of a childMarriageStart of a
career
Reinforcement of Consulting-based Sales (Individual Customers)
-16-
Value-added proposals
Management foundation
Support for active
engagement
Regional revitalization
The Gunma Bank, Ltd.
Value for Tomorrow
Regional strategy
Revamping of branch/loans station/ATM networks
Bolstering of sales structure by deploying sales promotion staff in focus areas
Designating branch offices that promote retail loans
With a high prefecture-wide market share, we will work toward regional revitalization and take advantage of the growth potential of a promising market outside the prefecture.
Focused deployment of sales promotion staff in promising markets
Revamping of sales structure in existing branchesInput of management resources into promising markets
Bolstering of channel alliances
We will strengthen non-face-to-face channels by strengthening online banking functions and introducing smartphone apps, thereby bolstering channel alliances, centering on the CRM system and EBM system.
Active use of fin-tech
We will work to provide high level of convenience and new financial services through the use of cutting-edge IT technology
Family bookkeeping app for individual customers
Cloud bookkeeping for corporate customers
CRM SystemEBM System
Branches Consulting plaza
ATMs
Loan stations
Direct Center
Smartphone apps
Online banking Website
Customer information and gathering and analysis of
needs
Introduction of "Pepper," a humanoid robot
Overhaul of Sales Structure Based on Regional Strategy and Bolstering of Channel Alliance
-17-
Value-added proposals
Management foundation
Support for active
engagement
Regional revitalization
The Gunma Bank, Ltd.
Value for Tomorrow
Streamlining of complicated operational f low <Measures under consideration>
Increased centralization of operations Increased centralization of deposit/exchange/estate management operations
Easing the load of labor-intensiv e operations Linear traf f ic line at the counter through the use of nav igation sy stem
Rev amping of ov erall administrativ e operations Simplif ied consulting memo f or assets-in-custody -based sales, etc.
Sophistication of credit management <Measured under consideration>
Ensuring error-f ree operation Introduction of company assessment (company -by -company handling)
Bolstering coordination of related sy stems Rationalizing deal proposal and assessment by redesigning application f orms
Rationalizing operation processes Automatic printing of contracts, ticketless execution, etc.
BPR implementing projectDeposit
and exchange operations
Loan operation
30% reduction on
deposit/exchange
operations load
30% reduction on back office work for loan/sales
divisions
Freeing-up time and deploying more personnel to strengthen face-to-face sales capabilities
Main points for improvement
Main points for improvement Loan operation streamlining project
BPR promotion
Use of ITIntegrating and bolstering the sales strategy systems that takes into account the system renewal and overall optimization that incorporates BPRmeasures.
We are aiming to reduce the operations workload at branches by 30% through two projects and to bolster non-face-to-face sales capabilities.
Operations Streamlining Promotion Conference
Cross-sectional efforts to improveproductivity
Materialization of BPR measures and progress management
Deliberating redeployment of personnel that accompanies operational streamlining
Deposit and exchange operations
Operation for marketing capability for deposit financial assets Loan operationCustomer management
Branch system Investment trust sales system
Front office compliance system CRM system Loan support system
Bolstering of collaboration and optimization
BPR Promotion and Productivity Improvement through the Use of IT
-18-
Value-added proposals
Management foundation
Support of active
engagement Regional
revitalization
The Gunma Bank, Ltd.
Value for Tomorrow
Ability to think independentlyand work proactively
Improvement of job satisfaction levels for all employees
Measures to innovate the work styles
Improvement and implementation of structure to innovate work styles
Revision in HR systems that allow all employees to aspire to step up
Improvement of job satisfaction levels for all employees
Support for activities of diverse personnel
Promotion of women in the workforce
Promoting operational staff aged 56 and over/senior employees
Creating a mechanism to develop younger employees
Development and deployment of personnel with expert
knowledge
Increasing staff with specialized skills and helping them obtain certifications
Training expert staff with proposal capabilities
Development of staff in specialized HQ divisions and appropriate deployment of staff
Bolstering management capabilities with an eye to developing leaders
Support in skill improvement for active engagement
Through measures to innovate the work styles, to support the activities of diverse personnel, and the development and deployment of personnel with expert knowledge, we help each employee to think independently for himself or herself, and to work proactively.
Innovation of Work Styles and Support for Every Individual Employee
-19-
Value-added proposals
Management foundation
Support for active
engagement
Regional revitalization
The Gunma Bank, Ltd.
Value for Tomorrow
(Reference) Gunma Bank Group
-20-
Improvement in consolidated ROE through deployment of the Group's comprehensive capabilities
The Gungin Card Co., Ltd.
Credit card business, moneylending
Gungin Leasing Co., Ltd.
Leasing operations
Gungin System Service Co.,
Development and sale of software, dispatch of IT
engineers
Gunma Chuo Kogyo Co., Ltd.
Transport of goodsMaintenance of ATMs
Gunma Finance (Hong Kong) Limited
Finance and brokerage businessSupport for companies advancing
into Asia
Gungin Securities Co., Ltd.
Dealing in securities, intermediary trading of securities, brokerage
and proxy handling
Providing credit guarantee for individual loans
Gunma Credit Guarantee Co., Ltd.
The Gunma Bank, Ltd.
Value for Tomorrow
The Gunma Bank, Ltd.
This document contains descriptions on the future performance
of the banking group. These descriptions do not guarantee such
future performance, for which naturally there are risks and uncertainty.
Please note that future performance may deviate from the targets
due to changes in the business environment and other reasons.
If you have further inquiries, please contact:
Business Management Office (in charge of IR), Corporate Planning Department,The Gunma Bank, Ltd.
HP: http://www.gunmabank.co.jp
The Gunma Bank, Ltd.
Value for Tomorrow