Alliance
Tokai Tokyo Financial Group has formed alliances with many leading regional banks with the idea of sharing operational resources with each other to accomplish mutual benefits. In the process of executing these alliances, we deployed various strategies such as regional revitalization, business portfolio diversification, customer base expansion, and digital transformation initiative. We are proud that this series of our endeavors has established a new business model in the financial industry.
We will continue to place an emphasis on this attitude, to help create a better society and to nurture a culture of mutual respect, observing a groupwide catchword, “Live Together” and “Prosper Together”.
Initiatives to date
Alliances
Allying with regional banks
There are two key growth drivers for our group: The first is our strategy of allying with regional banks; the second is our platform business, in which we provide other securities brokerage houses with the products and services they require.
Affiliated joint venture securities companies with regional banks
As of March 31, 2022, we have founded a total of seven joint venture securities companies with prominent regional banks. Each of our bank partners is a major regional player with solid operating and customer base. We have allowed each one to have the controlling stake in the subject venture. The joint ventures create a win-win consequences: The banks can expand into securities business with minimal initial investment, while we can reach the banks’ clientele and networks and use the earnings from the ventures to accomplish our stable operation.
As of March 31, 2022, there were seven joint venture securities companies with regional banks. These ventures represent a total of ¥1.91trillion in assets under custody, and in the fiscal year ended March 31, 2022, they posted a combined operating revenue of ¥31.4 billion. We remain committed to our strategy of integrating each regional bank’s robust customer base with our formidable expertise in retail, corporate, and marketing operations, so as to maximize the synergistic potential of the joint ventures and strengthen our alliances.
Business collaboration with regional banks
Joint venture securities companies are not the only form of our cooperation with regional banks.
We are building a new alliance model that additionally involves comprehensive business partnerships and financial intermediary services. Through this model, we win trust from customers and contribute to local communities.
In a step toward further collaboration with regional banks that share a stake in our joint venture securities companies, in April 2021, we entered into a comprehensive business partnership with The Tochigi Bank, Ltd. Similarly, in August, we signed a memorandum of understanding (MoU) with SenshuIkeda Holdings, Inc., to cooperate in providing services to corporate clients.
Additionally, in May, we signed a memorandum of understanding (MoU) with FideaHoldings over a plan to provide financial instruments intermediary services. The ensuing negotiations culminated Tokai Tokyo Securities becoming, in October, a broker service provider for two of FideaHoldings’ banks: The ShonaiBank and The HokutoBank.
Powerful Partners
We will deliver our services and products to a wider range of customers by expanding our alliance network to more non-financial business entities and regional governments. In so doing, we will leverage the expertise of the alliance we have acquired over the years of operations.
