Investment Platform for Regional Banks

「The joint-venture securities business with partner banks is not simply a system for receiving customer referrals from partner banks. It is a locally rooted financial model that combines the trust and customer contact cultivated by banks over many years in their communities with our Group's platform functions, including securities products and services, specialist personnel, training and market information.」

「We are deepening the JV Model 2.0, which combines financial and non-financial services, through the introduction of an agency-based business model at joint-venture securities companies established with regional banks and the rollout of services for affluent customers and corporations.」

「A memorandum of understanding was signed with Japan Post Bank to establish collaboration and cooperation in supporting startups, and full-scale discussions began toward building regional startup ecosystems.」

「In November, the Company signed a memorandum of understanding with ゆうちょ銀行 to realize cooperation and collaboration in supporting startups, with the aim of building local startup ecosystems, and began full-scale discussions. Going forward, we will undertake various initiatives that contribute to regional economic revitalization and regional development by leveraging the Group's expertise and network in supporting startups together with ゆうちょ銀行's strong nationwide network and the respective functions and knowledge of both parties.」

「In July, as part of an alliance with Powerful Partners, identified as a priority initiative toward the next dimension, our company and our subsidiary TT Digital Platform Co., Ltd., which provides digital services such as the Regional Revitalization Platform, entered into a basic agreement with Japan Post Bank Co., Ltd. concerning collaboration to revitalize regional economies and achieve regional revitalization. As the first initiative under this collaboration, we will jointly propose the introduction of premium digital shopping voucher programs to local governments. Going forward, we plan to deploy measures contributing to regional revitalization to local governments nationwide by leveraging both parties’ functions and expertise, including digital services such as the Regional Revitalization Platform and Japan Post Bank’s nationwide network.」

「In July, as part of an alliance with Powerful Partners, identified as a priority initiative toward the next dimension, our company and our subsidiary TT Digital Platform Co., Ltd., which provides digital services such as the Regional Revitalization Platform, entered into a basic agreement with Japan Post Bank Co., Ltd. concerning collaboration to revitalize regional economies and achieve regional revitalization. As the first initiative under this collaboration, we will jointly propose the introduction of premium digital shopping voucher programs to local governments. Going forward, we plan to deploy measures contributing to regional revitalization to local governments nationwide by leveraging both parties’ functions and expertise, including digital services such as the Regional Revitalization Platform and Japan Post Bank’s nationwide network.」

「In addition, through an organizational reform in October, Tokai Tokyo Securities established the Platform Corporate Solutions Department under the Platform Division of the Global Markets Company to propose multi-product solutions to corporate customers of affiliated joint-venture securities companies. It also newly established Tokyo Orque d’Or IV under the Wealth Management Company to conduct sales activities focused on developing new customers, including corporate managers, with the aim of expanding its customer base among wealthy customers in the Tokyo metropolitan area. Going forward, we will promote further expansion of the platform’s functions and the customer base of the wealth management division. TTDP entered into business-matching agreements with Hokuriku Bank, Ltd. in June and Tochigi Bank, Ltd. in December to promote the regional economy and consumption and support the digital transformation of local governments. In November, it also began providing the Regional Revitalization Platform to Kosai City, Shizuoka Prefecture, to support its premium digital shopping voucher program, with the aim of revitalizing the regional economy and promoting the digital transformation of the local community through the digitalization of shopping vouchers.」

「In addition, our subsidiary TT Digital Platform Co., Ltd. (TTDP) entered into a business-matching agreement with Hokuriku Bank, Ltd. to promote the regional economy and consumption and advance the digital transformation of local governments. TTDP will contribute to regional revitalization by providing digital regional currencies and regional points equipped with advanced technologies such as blockchain and robust security functions. Under the Group’s distinctive “Tokai Tokyo Digital New World” concept, TTDP aims to deploy a range of solutions to regional financial institutions, operating companies and local governments. This agreement represents the realization of that concept, and we will continue to implement it steadily.」

「As part of the Regional Bank Support Program, in April we entered into an agreement on a comprehensive business alliance with Tochigi Bank, Ltd., with which we jointly operate the joint-venture securities business, and in August we entered into an agreement with Ikeda Senshu Holdings Corporation concerning collaboration and cooperation in corporate business. Beyond the framework of the existing joint-venture securities business, we will broaden the range of products and services provided with the partner parent banks and strengthen bank-securities cooperation, with the aim of earning greater customer support and contributing to broader regional communities. In addition, following discussions under the basic agreement on an alliance in financial instruments intermediary services concluded in May with Fidea Holdings Co., Ltd., a wide-area regional banking group operating mainly in Yamagata and Akita prefectures, Tokai Tokyo Securities entered into outsourcing agreements with Shonai Bank, Ltd. and Hokuto Bank, Ltd. concerning financial instruments intermediary services and other matters, and began handling these services in October. We plan to expand the sales area for financial instruments intermediary services sequentially. Furthermore, to make a greater contribution to regional economic revitalization, which we have promoted through business collaboration with leading regional banks and their affiliated joint-venture securities companies, in May we invested ¥1 billion in Japan Co-Investment Platform Co., Ltd. (JPiX), an investment and business management company established by IGPI, Inc. for regional revitalization. We were the only securities company to invest.」

「As part of the Regional Bank Support Program, in April we entered into an agreement on a comprehensive business alliance with Tochigi Bank, Ltd., with which we jointly operate the joint-venture securities business of Tochigin TT Securities Co., Ltd. The affiliated joint-venture securities companies we have built with leading regional banks are steadily producing results. Going forward, beyond the framework of the existing joint-venture securities business, we will broaden the range of services provided with the partner parent banks under the themes of wealth management, corporate services, digital services, human resources development and training, and asset management, thereby strengthening bank-securities cooperation and contributing to broader regional communities in ways that are more strongly supported by customers. We also entered into a basic agreement in May with Fidea Holdings Co., Ltd., a wide-area regional banking group operating mainly in Yamagata and Akita prefectures, concerning an alliance in financial instruments intermediary services, and began discussions toward implementation. In addition, in May we invested ¥1 billion in Japan Co-Investment Platform Co., Ltd. (JPiX), an investment and business management company established by IGPI, Inc. for regional revitalization. We were the only securities company to invest.」

「Regional banks were divided into 3 groups, and business collaboration strategies were proposed and implemented for each bank. For partner parent banks: expand wealth management and corporate businesses, collaborate in digital fields, and develop individual alliances into comprehensive partnerships. For regional banks with securities subsidiaries: provide products tailored to their needs and develop and train specialist personnel. For regional banks without securities subsidiaries: support entry into the securities business through financial instruments intermediary schemes and other methods, and provide products and services.」

「During the fiscal year, we newly established the Digital Strategy Group to accelerate and strengthen the Group’s digitalization strategy in support of this management plan. We also established the Great Platform Business Promotion Department to provide and facilitate the use of a broad range of business platform functions by regional banks, including our existing partner banks and second-tier regional banks, as well as telecommunications and distribution companies. Through these initiatives, we are working to further enhance and expedite the realization of the Group’s strategic functions.」

「The number of affiliated joint-venture securities companies established with leading regional banks had been 6 through the previous fiscal year. During the fiscal year, we launched the seventh, Juroku TT Securities Co., Ltd., with Juroku Bank, Ltd. in June. Each is a joint venture with a financial institution that has an overwhelming business and customer base in its region, and we aim for sustainable long-term growth by focusing on further developing the market through bank-securities cooperation. We have also reorganized and strengthened our IFA business as a new transaction channel. In addition, we are pursuing alliances with promising FinTech companies and developing digital financial services to provide enhanced services to customers. We entered into a capital and business alliance with HOBE JAPAN Co., Ltd., which has strengths in cryptocurrency and blockchain-related businesses, and Tokai Tokyo Global Investments Pte. Ltd., our Singapore subsidiary, invested in ICHX TECH Pte. Ltd., which operates a security token exchange in Singapore. We have also established 3.0 Securities Preparatory Company, a smartphone-only securities company providing smartphone trading functions, and Money Compass Japan Co., Ltd., operator of the “Money Compass” asset management app. We are accelerating preparations to provide new digital service functions.」

「From the second quarter of fiscal 2019, Asset Management Platform Preparatory Company, newly established in July 2019 and renamed Money Compass Japan Co., Ltd. in November 2019, was included in the scope of consolidation.」

「The total number of affiliated joint-venture securities companies established with leading regional banks had reached 6, and during the fiscal year we proceeded with preparations to establish a seventh affiliated joint-venture securities company with Juroku Bank, Ltd. Each is a joint venture with a financial institution that has an overwhelming business and customer base in its respective region, and we expect sustainable growth over the long term by focusing on further developing regional markets that remain largely untapped. In addition, to provide enhanced services to customers, we have pursued alliances with promising FinTech companies. During the consolidated fiscal year, we invested in TORANOTEC Inc., operator of the “Torano-ko” app for investing spare change; Money Design Co., Ltd., provider of the “THEO” robo-advisor; and One Tap BUY Co., Ltd., provider of the “One Tap BUY” smartphone securities trading app.」

「Going forward, using the new head office as our starting point, we will advance our metropolitan-area strategy, strengthen the functions of our markets division, promote the Great Platform strategy and a productivity revolution, while also strengthening our business continuity planning framework, with the aim of further enhancing corporate value.」

「In addition to the back-office and systems services, training, information and products that our Group has provided to affiliated joint-venture securities companies and other securities companies, we aim to provide an enhanced level of service by integrating M&A capabilities and the marketing approaches used within our Group.」

「In addition, in August we established All Nippon Asset Management Preparatory Company to provide an asset management platform for regional banks. In December, its corporate name was changed to All Nippon Asset Management Co., Ltd., and in March of this year, several regional banks and Development Bank of Japan Inc. also invested in the company.」