Presentation Material for BIDV

The Hiroshima Bank, Ltd.

June 20, 2019

１．Time Table

Time Agenda Working Unit Speaker

Mr. Akira Maeda
(Managing Executive Officer)
9:00～9:15 Greeting -
Mr. Koji Sakai
（Executive Officer）
Outline of Hiroshima Prefecture and Mr. Keitaro Masui
9:15～9:20 Hiroshima bank （p2~7）
International Business Division
（General Manager）
Mr. Kazuyuki Ishihara
9:20～9:30 Digital Banking （p8,9） Digital Strategy Division
（Senior Manager）
Mr. Toshihiko Maekawa
9:30～9:40 SME Banking （p10） Corporate Planning Division
（Senior Manager）
Mr. Masanori Shintaku
9:40～9:50 Retail Banking （p11） Retail Loan Division
（Senior Manager）
Mr. Yasuhiro Ono
9:50～10:00 Asset Management （p12,13） Asset Management Division
（Senior Manager）
Initiatives for structural reform and
10:00～10:05 the work-style reform （p14,15） Mr. Masaaki Okayama
International Business Division
（Senior Manager）
10:05～10:15 Money Transfer Service （p16~18）

10:15～11:00 Q&A

1
2. Profile of Hiroshima Prefecture

In terms of key indexes, Hiroshima Prefecture accounts for about 2.3% of

Japan and falls around 11th place in the national ranking.

[Comparison between Hiroshima Prefecture and

Hiroshima Prefecture’s ranking and share of Japan
national average]

National Share of
Actual data As of
ranking Japan
Area
2
Area km 8,479 11th/47 2.2 Oct. 2017 (105.4)
Regionality

Prefectural
Thousand income per capita Populatio
Population 2,849 12th/47 2.2 Jan. 2018
people (96.4) n
(104.8)
Thousand
No. of households 1,308 11th/47 2.3 Jan. 2018
households
Nominal gross prefectural
Trillion yen 11.9 12th/47 2.2 FY2015 Wholesale and No. of
domestic product
retail sales household
No. of business Thousand (100.8) s
establishments
131 11th/47 2.3 2016 (106.0)
establishments
Economy

Shipment value of
Trillion yen 9.9 10th/47 3.3 2016
manufactured goods, etc. Shipment value Nominal gross
of manufactured prefectural
Wholesale and retail sales Trillion yen 12.5 10th/47 2.1 2016 goods, etc. domestic
(154.7) product
Prefectural income per Thousand (102.7)
3,074 11th/47 －　 FY2015 No. of business
capita yen establishments
(110.4)
Deposits outstanding Trillion yen 12.9 11th/47 1.7 Mar. 2018
Finance

Note: Each index of Hiroshima Prefecture is calculated based on a

national average=100.
Loans outstanding Trillion yen 9.4 11th/47 1.9 Mar. 2018 Source: Compiled by Hirogin Research Institute
Source : Ministry of Internal Affairs and Communications, Ministry of Economy, Cabinet Office, Bank of Japan

2
3. Hiroshima Prefecture and Four Local Prefectures
(Chugoku and Shikoku regions) Comparisons

Population in the Chugoku and Shikoku Number of business establishments in the

regions by prefecture Chugoku and Shikoku regions by Prefectural GDP (nominal)
prefecture

（万人） (ten thousand) (thousand) (trillion yen)

Population ranking by prefecture Number of business establishments

ranking by prefecture Country/region GDP(nominal)
Hong Kong SAR 37.4trillion yen
(ten thousand people) (thousand)
Singapore 36.8trillion yen
1 Tokyo 1,364 1 Tokyo 686
2 Kanagaw a Prefecture 917 2 Osaka Prefecture 423 342 Philippines 35.4trillion yen
3 Osaka Prefecture 886 756 3 Aichi Prefecture 323 thousand Four local prefectures 30.5trillion yen
4 Aichi Prefecture 755 ten thousand 4 Kanagaw a Prefecture 307
…
Chile 29.5trillion yen
…
12 Hiroshima Prefecture 285 11 Hiroshima Prefecture 131 Finland 28.2trillion yen
13 Kyoto Prefecture 256 12 Kyoto Prefecture 119
…
Portugal 24.2trillion yen
…
20 Okayama Prefecture 192 21 Okayama Prefecture 83 Hungary 14.9trillion yen
…
…
27 Yamaguchi Prefecture 140 26 Ehime Prefecture 65 Morocco 12.2trillion yen
28 Ehime Prefecture 139 28 Yamaguchi Prefecture 63 Hiroshima Prefecture 11.9trillion yen
… …
47 Tottori Prefecture 57 Ukraine 11.0trillion yen
47 Tottori Prefecture 26
Total 12,771 Sri Lanka 9.6trillion yen
Total 5,579
Source : The number of the population based on the Basic Resident
Register, the population dynamics and the households by the Ministry Source : Economic census 2016 Myanmar 7.2trillion yen
of Internal Affairs and Communications(as of 1 January 2018)
Source : Prefectural accounts by the Cabinet Office 2015, IMF 3
４．Outline of Hiroshima Bank
Foundation November 1878 Hiroshima Bank Head Office
(Temporarily relocated)(Image of new Head Office bldg.)
From January 2018 to Spring 2021Scheduled to be completed in January 2021
Capital 54,573 million yen

5,057 employees (including contract workers, 1,557 part-

No. of employees
time workers and temp-staff workers)
Listed on the first
section of the
Tokyo Stock
February 1971
Exchange
In February 2018, Head Office was relocated in line with its
Subsidiaries and Hirogin Securities Co., Ltd., Hirogin Lease Co., Ltd., Hirogin Card reconstruction.
associated Service Co., Ltd., Hirogin Guarantee Co., Ltd., Shimanami Servicer Business will continue at the relocated place until the new
companies Co., Ltd., and six other companies As of September 30, 2018 Head Office building is completed in Spring 2021.

Branch network Representative Office

Shimane Okayama
Prefecture Prefecture
1 office 10 offices Tokyo
Hiroshima Nagoya Shanghai Office
Prefecture （from February 1996）
Osaka

1 each
136 offices*
Yamaguchi
Kobe NEW
Prefecture Himeji Hanoi office
7 offices (scheduled to open in July
2019)
Kitakyushu
Ehime Bangkok Office
Prefecture
Fukuoka （from April 2009)
6 offices Dispatch of bank personnel to the Bank
for Investment and Development of
Vietnam in Ho Chi Minh (from April
*Including transfer-specialized offices and internet offices as of September 30, 2018 2016)

ATM network
Singapore Office
829 domestic ATMs owned by the Bank About 28,800 partner ATMs owned by （from July 2013）

(Two ATM compatible with cards issued overseas) Japan Post Bank(As of March 31, 2018)
About 4,100 ATMs owned by other About 50,800 partner ATMs owned by
5partner banks free of charge convenience stores
About 84,500 domestic ATMs in total As of September 30, 2018 4
 ５．Hiroshima Bank’s deposit volume (trend of term-end balance)
The Bank’s deposit* volume as of September 30, 2018 ranked 10th among 105 regional banks
nationwide.
(*) Deposits include NCD.
Deposit balance ranking among 105 regional banks
Year-on-year (unit: billion yen)

(Billion yen) + 17.3 billion yen Ran Bank name Deposit

YoY
(yoy +0.2%) k (Location of H.O.) balance

7,477.4 7,494.7 Bank of Yokohama

7,211.6 1 (Kanagawa)
14,110.2 5.8%
6,793.5 Chiba Bank
2 (Chiba)
12,571.2 4.0%
Corporate
deposits Bank of Fukuoka
+2.6 billion yen
3 (Fukuoka)
10,445.6 4.0%
(yoy+0.1%)
Shizuoka Bank
4 (Shizuoka)
9,792.6 2.1%

Joyo Bank
Personal 5 (Ibaraki)
8,723.2 4.5%
deposits
+55.9 billion yen North Pacific Bank
(yoy+1.2%) 6 (Hokkaido)
8,502.5 3.0%
Nishi-Nippon City
7 Bank (Fukuoka) 8,345.6 3.4%
Bank of Kyoto
8 (Kyoto)
7,859.8 2.6%
Public and
financial 77 Bank
institutions’ 9 (Miyagi)
7,766.5 0.2%
deposits
-41.3 billion yen Hiroshima Bank
(yoy -8.2%) 10 (Hiroshima)
7,494.7 0.2%
6
5
 ６．Hiroshima Bank’s loan volume (trend of term-end balance)
The Bank’s balance of loans (as of September 30, 2018) ranked eighth among 105 regional banks nationwide.
Despite the minus interest rate environment, the amount of loan interest increased for the first time in an
interim period for 10 years due to an increase in the loan balance (on a full-year basis, it increased in FY2017
for the first time in 10 years).
(Billion yen)
Year-on-year Loan balance ranking among 105 regional banks
+181.9 billion yen (unit: billion yen)

(yoy +3.2%) Ran Bank Name Loan

YoY
k (location of H.O.) balance
5,947.2
5,765.3 Bank of
5,150.0 5,352.7 Business loans etc.
1 Yokohama 10,916.5 3.6%
+118.1 billion yen
(yoy +2.7%) (Kanagawa)
Chiba Bank
2 (Chiba)
9,995.8 4.5%
Personal loans
+63.8 billion yen
Bank of Fukuoka
(yoy +4.4%) 3 (Fukuoka)
9,600.7 6.1%

Shizuoka Bank
Increase in
4 (Shizuoka)
8,384.6 3.0%
interest amount
Amount of for the first time Nishi-Nippon City
loan Interest 31.9 30.5 30.4 30.7 in ten years
5 Bank (Fukuoka) 7,001.2 4.0%
North Pacific
State of fund-raising for foreign-currency loans (as of Sep. 30, 2018, all currencies in total) 6 Bank (Hokkaido)
6,268.0 0.6%
(Billion yen)
Item Balance Joyo Bank
7 (Ibaraki)
6,130.6 2.1%
Loans 241.6
Total 241.6 Hiroshima Bank
Stable capacity of fundraising
8 (Hiroshima)
5,947.2 3.2%
Deposits 136.5
Stable fund-

(credit line)
raising

Gunma Bank
Long-term fund-raising 91.6
+62.8
9 (Gunma)
5,549.5 2.0%
Commitment line 76.3
7 Bank of Kyoto
Total 304.4 10 (Kyoto)
5,399.1 6.3%
6
７．Hiroshima Bank’s business results and profitability 1) Core banking profit*
The Bank’s core banking profit ranked 8th among 105 regional banks nationwide.
(*) This is an index to indicate net income from the core banking business. The figure represents net income mainly Core banking profit ranking among 105 regional banks
resulting from subtracting deposit interests and other expenses from the total revenue amount of loan interests,
securities interests, and fees and commissions. nationwide (unit: billion yen)

(Billion Bank Name Core banking

Rank
yen) (location of H.O.) profit
Bank of Yokohama
1 (Kanagawa)
37.8

Chiba Bank
2 (Chiba)
36.1

Bank of Fukuoka
3 (Fukuoka)
33.8

Shizuoka Bank
4 (Shizuoka)
32.3

Suruga Bank
5 (Shizuoka)
29.7

Ashikaga Bank
6 (Tochigi)
23.6

Joyo Bank
7 (Ibaraki)
22.4

Hiroshima Bank
8 (Hiroshima)
17.6

Gunma Bank
9 (Gunma)
17.3
Nishi-Nippon City Bank
10 (Fukuoka) 16.3

8
7
８．Response to financial digitalization — Branch office strategies —

In the face of changing consumer needs and behavior patterns and declining customer branch visits, urgent
challenges include building channels (face-to-face and indirect), providing services that expand points of contact
with customers, and delivering more sophisticated services.
Study on revamping branch operations in light of deregulation and integrating external offices with branches

Changing customer needs, fewer customers visiting branches Overhaul of branch functions

Administrative Branch counters ATM/IB Enhance customer services by building a network

procedures (face-to-face channel) (non-face-to-face channel) Changes in of core branches and small, compact branches.
customer behaviors  Transform the form and functions of branches by
Visit to home, and needs reducing administrative burdens.
Consultations Visit to branch
workplace, etc.  Specify the roles of branch offices and optimize
personnel assignments based on market
characteristics.
 Increase the number of joint offices with Hirogin
Trends in number of customers visiting branch counters at our bank
(average per month)
Securities, focusing on core branches.
Achieve flexible branch office management in
response to deregulation.
The number of customers
visiting branch counters is  Flexibly determining operating days and hours.
declining year after year  “Strengthen interactions with and improve service
(and is expected to continue
falling in the future).
for customers”; “enhance efficiency” in accordance
with local conditions and customer needs.
(10,000 people)

Integrate three external offices with branches

Urgent (closure of external offices).
With the number of visiting customers declining due to the
We must enhance customers interactions and popularity of other channels, we plan to close them (in
January and March 2019) based on their proximity to their
continue to provide sophisticated services. mother branches.

8
９．Response to financial digitalization
— Responding to diversification in payment methods —

Seek to expand points of contact with new customers and increase earning opportunities by introducing a brand
debit card and providing a smartphone app through a partnership with iBank Marketing Co., Ltd.
Develop an AI credit-screening model for small businesses that doesn’t require human involvement; begin making
preparations to deploy the system.

Provide new means of payment. Create “Wallet+” smartphone app.

Provide functions not available
JCB/Visa-brand debit card Spring 2019
with the Hirogin app (planned).
<Hiroshima Toyo Carp <Hirokun design> Debut!
design> Equity  Balance confirmation/managing
partnership with income and expenses
iBank  Automatic deposits
 Loan functions
First regional bank in the  Investment functions, etc.
Chugoku and Shikoku regions
First time our
bank has to offer Through this partnership, which utilizes an open
collaborated on a
design with the
both JCB and Visa brands API, we will expand points of contact with young
Carp
Note: Actual designs may differ from these illustrations.
people, with whom we currently have little
interaction.
To date, we have lacked transaction points with the
Field testing of sophisticated loan screening involving AI
following customers (we lacked initiatives to attract them): (2nd round)
 Young people We will make an effort to
 Credit-averse people attract such customers. Financial data Account balance trend data
Profitability indicators
This is our future goal: Liquidity indicators
Increases in sales
Shareholders’ equity ratio,
Achieve a smooth transition etc.
to Hirogin Value One.* Obtain data that can’t be
captured from users of Hirogin AI
Value One. Analyze correlations with data for Calculate risk of
Reference: Value credit-card bankruptcy.
transactions handled (billion yen)
borrowers who have defaulted in
the past.
Develop strategies
involving use of the  Build an AI credit-screening model for small businesses.
new data.  Begin marketing ahead of the launch of loan products
for small businesses (release planned for spring 2019).
(*) All-in-one card with ATM card, credit card, and card loan functions 9
１０．Enhancement of high value-added banking business1
— Business loans —

Leverage operational risk as an opportunity to strengthen the consulting business to increase loan
balances to SMEs and boost income from investment banking business.
Leveraging operational risk to strengthen consulting
Mazda-related suppliers' needs
business
 Earthquake in northern Osaka
prefecture Increasing
 Heavy rains in Western Japan Suspension of concerns about
Mazda Relevant suppliers
in July 2018 operational
 2018 Hokkaido Eastern Iburi
operations, declining
Earthquake, etc. sales, etc.
risks  Began launching next  Procure funds and operating
generation of products (7th capital for the next generation of
Actions our bank can take to respond to increased concerns generation) in FY2018
products
[Example risk map]  Formulate business plan to
Impact on business (large) accompany overseas expansion
 Building a new plant in the and respond to exchange risks.
Natural disaster risk Risk of changes US as part of a joint venture
in the external environment with Toyota Amendment of Subcontracting Act
Loans with provision for principal  Exchange rate Derivatives Source: (requires improvements in payment terms)
 Earthquakes repayment waiver in the event of a fluctuations Mazda
disaster
 Fires  Bankruptcies Business matching (introducing insurance For subcontractors:
Loans with insurance to cover business companies)

 Floods continuation expenses  Soaring raw  Increasing cash payments Procurement

 Winds Loans to assist with disaster prevention materials prices  Reducing settlement periods of funds
and BCP  Declining demand for trade notes, etc.

Cyber risks
 Personal information Loans for cybersecurity
leaks
Frequency  Information system failures Frequency Promoting loans for SMEs and business insurance
(low) (high)
Organizational Risk of
administration risk Average balance of loans (1H
accidents to SMEs
 Business Business insurance actual)
continuity Business succession support  Work-related
loans Business insurance
death or
 Securing human Introduce familiar insurance
resources Health management and injuries agents
 Mental health assessment loan schemes  Traffic
accidents 2H
0.45 0.47
Business
Impact on business (small) insurance
premiums
 Offer appropriate solutions to meet the various 0.11 1H
needs identified using the risk map. (Billion yen)
 Expand the lineup of consulting-based loan
products. 10
１１．Enhancement of high value-added banking business 2
— Personal loans —

Increase the balance of personal loans by strengthening related headquarters functions; endeavor to
enhance business efficiency and reinforce governance.

Strengthening efforts to promote housing loans and

apartment loans Promoting personal loans

Trends in average balance of personal loans

1,563.8 1,590.0
1,518.9 Others
Past activities focused on
promoting loans for new and
used homes; now... Apartment loans,
etc.

Personal Loan
Center
Housing loans
Newly assign
 Support with housing loans + Flat 35
dedicated staff to
 Apartment loans (Billion yen)
promote:

Reference: Status of apartment loans

(Proportion of balance by region (Proportion of balance by credit rating
 Expand opportunities for contact with [as of end of September 2018]) [as of end of June 2018])
Support for customers (on holidays and at night).
housing loans  Increase introductions from home Four local
Normal
builders. prefectures
borrowers
 Step up cooperation with builders.
 Integrate/network contact points to achieve rapid
Apartment loans response.
 Reinforce governance through more rigorous loan
screening (Proportion of balance by age (Proportion of loans executed by purpose
[as of end of September 2018]) [loans executed in April–June 2018])
Includes funds for
Under 50 land purchases.
70 or older Funds for building
Between
Free up personnel through enhanced 50 and 60 construction
Between
business efficiencies (reassign to activities that 60 and 70
promote markets).
11
１２．Enhancement of asset management business 1
— Collaboration between banking and securities businesses —

Increase the number of joint offices, strengthen sale forces, and step up mutual introductions of customers; enhance
the efficiency of front office services, integrate banking and securities, and provide products and services that meet
diverse customer needs.

Enhancement of BK/SE unified management Promotion of financial instrument intermediary services

Measures Results (including estimates) Wholly-owned subsidiary

(June 1, 2017)
Number of joint offices
(total number including booths) Number of active
accounts of financial
3  8  16 instrument
(FY2016) (FY2017) (FY2018)
intermediary
services

Increase the number of joint offices

Average
to provide one-stop function YoY change Joint
for all
(FY2018 1H) offices
Number of accounts of
offices 756.8
financial instruments Approx. Approx. 719.1
intermediary services
acquired
+50% +40%
Income from financial Approx. Approx. Hirogin
instruments intermediary
services 2.7-fold 2.2-fold 643.7 Securities
613.7 Balance of
Strengthen sales power to acquire The number of employees of intermediary
the bank seconded to Hirogin Securities transactions
new accounts of financial instrument
intermediary services + 20 persons
(April 1, 2017 to April 1, 2018.)
Hirogin Securities was qualified to conduct
trust agreement agency business and Hirogin
Enhance measures to meet needs bank agency business (January 4, 2018) Securities
for inheritance tax saving Balance of
First in nation (regional bank securities subsidiary) direct
transactions
Introduce customers with Term-end balance
Enhance ability to meet insurance (fair value, billion yen)
insurance needs to the bank
needs
(from October 1, 2018).

Allow digital signing of certain application Proportion of Hirogin

Securities’ net FY2016 FY2017 FY2018 1H
Strengthen ability to adapt to forms used to open intermediary accounts operating income
customer needs + enhance
(from November 3, 2018)
 Enable accounts to be opened and
corresponding to 18.4% 30.8% 44.4%
Intermediary income
business efficiency + go paperless structured notes to be purchased
simultaneously
12
１３．Enhancement of asset management business 2
— Business for HNWIs and corporations —

Have personnel with strong proposal-presenting skills respond proactively to inheritance/gift-related needs. Also
endeavor to offer solutions to corporations that meet their needs not only for financial products, but also for risk
management.
Proactive responses to inheritance needs (including proposals to Strengthen proposals targeting corporations.
corporate owners)

Trends in holdings of shares and investment trusts by private sector non-financial corporations
Before inheritance

Can be handled (Trillion yen)

 Goal: Ensure inheritance  Past gift trust by our bank Strengthen proposals
goes smoothly. (Goal:  Testamentary (existing service)
involving financial
(from April 2018)
Minimize conflict.) substitute trust
 Goal: Minimize  Investment trusts
products.
 Testamentary trust Corporate investment  Foreign-currency time
inheritance tax. (preparation of will)
(Ancestor) deposits
 Insurance, etc. balances are growing year  Structured notes, etc.
Can be handled
by our bank
after year.
Inheritance
(existing service)
starts  Organization of (from April 2018)
inherited assets
 Testamentary trust Respond to risk
 Goal: Complete inheritance (execution of will)
management needs.
After inheritance

procedures smoothly.
 Concerned about second <<Proposal for handling
inheritance second inheritance>>
 Effective use of real Promoting/strengthening
estate
 Testamentary trust insurance (life/non-life)
(Inheritors) (preparation of will) (including introducing insurance
 Insurance, etc.
brokers)
Reference: Bank of Japan “Money circulation, etc.” > Private sector non-financial
corporations > Shares, etc. / investment trust beneficiary certificates
Can be handled
Making inheritance the starting point for by our bank
(existing service)
strengthening the inheritance consulting business (from April 2018)
Income from corporate customers as a proportion of asset
for the next generation management income
(including strengthening measures concerning business succession
for corporate owners)

Trend in numbers of personnel with Improving

FP (financial planning) certifications proposal-making
1,718 1,778 skills
1,402 1,531
FP Grade 2, etc.

FY15 FY16 FY17 FY18

(Person) FP Grade 1
Provide comprehensive solutions that go beyond lending money.
Note: FP Grade 1: Grade 1/CFP of Financial Planning Certification, FP Grade 2: Grade 2/AFP of Financial Planning Certification 13
１４．Initiatives for structural reform
Free up more time for sales promotion and personnel through various structural reform projects; relocate human
resources to promising markets and headquarters departments.
Structural reform project name Outline
 Use sales-supporting devices (tablet)
 Integrate customer information and
management tools dispersed by business
type
Sales Promotion Reform
 Receive application for financial
Project instruments by tablet
 Secure customer service time through
intensive management of actions and
results
 Receive application for a personal loan by
Personal Loan tablet
Low Cost Operation  Centralize back office work to the
headquarters
 Centralize housing loan refinance and
apartment loan sales to the headquarters
 Thorough reduction
Project to Reduce the Labor  Reduce documents
Burden at Branch Offices  Reduce the use of seals or signatures
 Reduce the vault
 Reduce manager’s tasks
 Reduce the use of passbooks
 Implement measures to reform
working styles at the headquarters,
Head Office Reconstruction taking advantage of the temporary
Project Head Office
 Non-territorial office
 Electronic approval
 Internal mobile phones
 Mobile PC
 Enhance functions of new channels
Response to Financial (mobile application)
Digitalization  Diversification and enhancement of
settlement functions
 Step up provision of services based on
new technologies (e.g., AI).
 Respond to open API
 Enhance marketing
Outcomes (including expected outcomes) Effects
Managed to secure
 Increased customer interaction
180
times by 0.5–1.0 hours per day
members of personnel
per person (compared to FY2016 1H)
(FY2017)
 Enhanced business efficiency
 Clearer promotion structure
Reallocated personnel
 Stronger governance (April 2018)
 Experimental deployment of tablets at
branches (from December) To secure about 130
 Promoting self-transactions by customers
members of personnel
 Reducing manager tasks/eliminating
second line of procedures (back office) (in total between FY2018 and
 Ease burden on managers by reducing administrative FY2021)
tasks.
 Electronic approval/deployment of
Free up personnel by
mobile PCs (headquarters)
 Shorten time required for approval by improving productivity
40%. (planned).
 Reduce number of printed sheets by
approx. 50%. (FY2018 to FY2021)
 Explore possibility of creating a smartphone
app, “Wallet+”.
 Build technology infrastructure in partnership Create new earning
with electronic payment service provider.
opportunities
 Participate in project to build a data sharing
infrastructure through Hiroshima Sandbox.
(*) Dedicated smartphone app administered by iBank Marketing Co., Ltd., part of the Fukuoka
Financial Group. For more information, see http://ibank.co.jp. 14
１５．Initiatives for the work-style reform

Proactively and continuously implement various work-style reform measures to improve productivity.

Use of tablets for transactions in the lobby Work-style reform measures at headquarters
(Project to reduce the labor burden at branch offices)

1. Visits branch.  Shorter

Bank wait times Introduced the electronic
Introduced mobile PCs
counters Meet customers in the lobby approval workflow
and guide them to the
ATM appropriate channel.
 Fewer errors (incomplete entries,
Customer

etc.)
 No need for revisions or
seals
2. Enters information into tablet.
Make use of wait times to have to indicate corrections
(when corrections need to be made)
customers complete
transactions by themselves
(self-transactions).
(no need to fill out and affix seals to
 No need for operations
Paper-free
forms)
 No need for superficial checks
(performed automatically by system)
approval/reporting flow
3. Confirms information entered.  Reduced back-office processing
(completed at the counter)
 Reduced manager tasks
Electronic approval away
(no need to affix seal of confirmation)
from office
Hiroshima Bank

Customers check the

information they entered.
Approval Report Numbers of
 No need for detailed
documents documents, etc. printed sheets
4. Administrative processing document checks
 No need to attach
documents FY2015 2H
Detailed check of – 3.8 5.2 FY2017
1H
Approx. four
transaction details million sheets
FY2016 1H days days
(number of days from issuance to approval)

FY2018 Approx. 2.7

1H 2.6 2.8 FY2018
1H million sheets
To reduce about 520,000 work hours
in total a year days
(-1.2 days)
days
(-2.4 days)
(approx. 33% reduction)

by developing the above measures and other measures

(between FY2018 and FY2021, compared with the 2nd half of FY2017) Huge improvement Lower printing
16
Secure about 130 employees and relocate them (FY2018 to FY2021) in decision-making speed costs
15
１６．Money Transfer Service

① Current Status of Remittance (The Hiroshima Bank)

・The number of remittances in 2018 is approximately 36,200.
There are about 4,200 personal remittances.
The percentage of personal remittances accounts for 12% of the total number.
【Number of Remittances (Year:2018)】
Remittance by Remittance Total Percentage
web by bank teller
Corporation 19,000 13,000 32,000 88.4%
Personal 200 4,000 4,200 11.6%
Total 19,200 17,000 36,200

② Current Status of Personal Remittance(The Hiroshima Bank)

・ The number of personal remittances of The Hiroshima Bank in 2018 is approximately 4,200,
Remittance amount per one time is 1,160,000 yen.
・The percentage to Vietnam is very low at around 1%.
The average remittance amount to Vietnam is 1,191,000 yen.
【Personal Remittance Percentage by Country(Year:2018)】
Country name Percentage Average remittance amount
China 36.2% 1,274,000
Thailand 5.5% 656,000
Philippines 5.4% 294,000
Vietnam 1.0% 1,191,000

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③ Number of Vietnamese in Hiroshima Prefecture and Remittance Method

・As of October 2018, there are about 10,000 Vietnamese in Hiroshima Prefecture, the second largest after China.
The number of Vietnamese is still increasing at a pace of about 20% every year
・However, the number of Vietnamese remittances (The Hiroshima Bank) has not increased much.
・Vietnamese living in Japan are estimated to use a cheap remittance company that can remit
for a small amount at low cost.

【Number of Foreigners (Year:2018)】

Country name Total number of Number of Number of foreign
foreigners foreign technical interns students
China 9,097 4,028 1,429
Vietnam 10,529 7,070 2,400
Philippines 5,117 2,250 12
Brazil 1,212 3 0
Total 31,851 15,354 4,545

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④ Problem and Solution

・It is necessary to shift from a cheap remittance company, and a high fee can not be expected (about 1,000 yen).
In the style of accepting remittance at the bank teller and using SWIFT, the cost is severe.
・Customer support in English is not available at the bank teller and on the web.
The Vietnamese language is also not available.
・On the other hand, The Hiroshima Bank has a high market share in Hiroshima Prefecture.
There are many Vietnamese who have account for The Hiroshima Bank in Hiroshima Prefecture .

・The Hiroshima Bank, in cooperation with BIDV, wants to capture Vietnamese remittances
in ways other than the traditional way.
However, there are many problems as mentioned above.
・If there is a successful experience such as a low-cost remittance method by a method other than SWIFT with BIDV,
it will be helpful if you can continue to share information about it.

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