Intensifying Competition in Financial Services Driven by Low Interest Rates, Population Decline and FinTech Entry
First written in FY2019. 4 of 5 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Aozora Bank moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 12 of 22 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition, competition with other banks to attract deposits has begun following the lifting of negative interest rates. The Bank aims to further stabilise its funding base by flexibly setting deposit rates and focusing on attracting large deposits, but there is no guarantee that it will be able to secure stable funding in the future.」
Competition risk has become more concrete not only through FinTech and digitalisation, but also through competition to attract deposits and rising funding costs following the normalisation of interest rates. - 2026-05-14WorsenedFinancial Results Presentation
「国内預⾦総量の頭打ちに伴う預⾦獲得競争の激化」
預金総量の伸び鈍化を前提とした預金獲得競争の激化を外部環境として明示した。 - FY2025WorsenedAnnual report
「Competition with other banks to attract deposits has begun following the lifting of negative interest rates. The Bank aims to further stabilise its funding base by flexibly setting deposit rates and focusing on attracting large deposits, but there is no guarantee that it will be able to secure stable funding in the future.」
Competition risk has become more concrete not only through FinTech and digitalisation, but also through competition to attract deposits following the lifting of negative interest rates and rising funding costs. - FY2021WorsenedAnnual report
「The competitive environment in Japan's financial services market is becoming increasingly challenging due to population decline, an ageing population and the prolonged low-interest-rate environment. In addition, as digitalisation advances, providers of financial services known as FinTech companies are entering from other industries.」
The disclosure explicitly identifies intensifying competition driven by digitalisation and entrants from other industries, in addition to low interest rates and demographic trends. - FY2019First statedAnnual report
「The competitive environment in Japan's financial services market is becoming increasingly challenging due to population decline, an ageing population and the prolonged low-interest-rate environment. In addition, technological advances have enabled providers of financial services known as FinTech companies to enter from other industries, and the Bank competes with numerous financial services companies.」
The Bank has identified intensifying competition from entrants from other industries, including FinTech companies, in addition to population decline, population ageing and low interest rates, as a new external risk.