Hokkaido Electric Power will launch the banking service “Hokuden BANK” on 14 October and, in partnership with UI Bank, a subsidiary of Tokyo Kiraboshi Financial Group, will provide deposit-taking, loans and foreign exchange transactions. By linking the service to its member points programme “Enemall,” it will offer up to 10% in points based on bill payments.
Hokkaido Electric Power announced that it will begin offering the new banking service “Hokuden BANK” on 14 October. This will mark the first banking business operated by an electric utility, with the company establishing a framework to provide deposit-taking, lending and foreign exchange transactions in partnership with UI Bank, a subsidiary of Tokyo Kiraboshi Financial Group.
The service uses UI Bank's system and allows customers to open accounts through a smartphone app. Customers can link their accounts to Hokkaido Electric Power's member points programme “Enemall” and receive 1% in points when paying electricity and gas bills by automatic bank transfer. The rate can increase depending on conditions such as using the account to receive salary or pension payments, reaching a maximum of 10%.
Accumulated points can be applied to electricity and gas bills or transferred to points programmes operated by partner companies. Hokkaido Electric Power will act as a bank agency for Hokuden and handle contract intermediation for UI Bank. The target number of account openings has not been disclosed. The company aims to curb customer outflows by expanding customer touchpoints going forward.
The background includes intensifying competition caused by progress in electricity-market liberalisation and the expansion of new electricity providers. The share of new electricity providers in Hokkaido has reached a high level.