Community-based regional securities firms are pursuing broader alliances and business-model shifts to survive. As demand from their former core customers, affluent older people, continues to decline, a range of initiatives is emerging, including creating new IPO companies and transitioning to IFA businesses.
The number of community-based regional securities firms has been declining year by year, while the regional affluent population that forms their core customer base is shrinking as the population ages. Against this backdrop, they are exploring broader alliances and business-model shifts to survive.
今村証券, together with 長野証券 and 大熊本証券, established a consortium aimed at creating new IPO companies. 西村証券 joined in the latter half of the 2020s, and the consortium is promoting cross-regional business matching and cooperation among investors. The president of 今村証券 indicated a policy of moving away from its former earnings model.
To reduce the burden of system costs on regional securities firms, Okasan Securities Group is supporting their transition to IFA businesses. Efforts are under way to specialize settlement and customer asset management in neutral asset management. Assets held in the fund wrap offered by the wealth management division have grown to more than ¥3 billion.
The Japan Securities Dealers Association is working to reduce the industry's overall back-office burden and established a Securities Business Infrastructure Management Company. It aims to provide an account-opening application in line with the mandatory use of identity verification through IC chips next year.