Hokuhoku Financial Group was established in 2004 through the merger of Hokuriku Bank and Hokkaido Bank, which operate in geographically separate regions. To overcome long-standing organizational barriers, President Hiroshi Nakazawa says that “reform will not move forward unless one of the banks takes the lead.”
Hokuhoku FG was established in 2004 through the merger of Hokuriku Bank and Hokkaido Bank, which operate in geographically separate regions. The merger reflected the fact that although the two banks had deep historical ties, their business areas differed, and they chose to maintain 2 brands under a holding company.
Even after the merger, integrating the organizations, personnel and strategies took many years, and barriers remained that prevented greater integration within the group. Hokuriku Bank holds the top share in the Hokuriku region, while Hokkaido Bank has supported small and midsize businesses mainly in Hokkaido.
President Hiroshi Nakazawa has indicated a policy of further integrating the head-office functions and moving toward a “one-bank” model that makes quick, low-cost management decisions while preserving the distinct characteristics of the 2 brands.
The interview article touches on scathing comments from an anonymous employee survey, the struggles involved in organizational reform and discussions of an equal merger, raising questions about the outlook for further management integration and the shift to a one-bank model.