Concordia Financial Group, Ltd., through its wholly owned subsidiaries, provides a range of domestic banking products and services to individual and corporate customers.
The company’s subsidiaries include Bank of Yokohama and Higashi-Nippon Bank.
Bank of Yokohama
Bank of Yokohama is a regional bank that serves customers through an extensive network of branches, sub-branches and ATMs, primarily in Kanagawa Prefecture and southwestern Tokyo Prefecture. It offers deposit products, housing loans,...
Concordia Financial Group, Ltd., through its wholly owned subsidiaries, provides a range of domestic banking products and services to individual and corporate customers.
The company’s subsidiaries include Bank of Yokohama and Higashi-Nippon Bank.
Bank of Yokohama
Bank of Yokohama is a regional bank that serves customers through an extensive network of branches, sub-branches and ATMs, primarily in Kanagawa Prefecture and southwestern Tokyo Prefecture. It offers deposit products, housing loans, consumer loans, investment products, and other financial services to meet the various needs of individual customers, and deposit products, various forms of financing and business consulting services, such as M&A advisory services and support for overseas expansion to serve corporate customers, particularly small-and medium-sized enterprises.
Retail Banking
Through an extensive network of branches, sub-branches, and ATMs, primarily in Kanagawa Prefecture and southwestern Tokyo Prefecture, the retail banking business of Bank of Yokohama offers a range of banking products and services to meet the various needs of its individual customers. In addition, Bank of Yokohama offers further ATM coverage through East Japan Railway Company’s VIEW ALTTE ATM network, AEON Bank, Ltd.’s ATM network and the convenience-store based ATM networks of each of Seven Bank, Ltd.; Lawson, Inc.; and E-net Co., Ltd. Bank of Yokohama also provides ATM network services in collaboration with Higashi-Nippon Bank, which has enabled customers of Bank of Yokohama and Higashi-Nippon Bank to use both banks’ ATM networks in the metropolitan area mainly in Kanagawa and Tokyo Prefectures.
Deposit Products: Bank of Yokohama offers various types of deposit accounts and products for individual customers. Its deposit product offerings allow customers to select the products best suited to their savings needs, including ordinary deposit accounts, as well as short- and long-term time deposit products. Bank of Yokohama also offers time deposit products designed to attract investors who seek higher returns, including foreign-currency and variable-rate products. Customers might use their Bank of Yokohama cash cards to make deposits and withdrawals from ordinary deposit accounts and other accounts through Bank of Yokohama and third-party ATMs. Customers might also access their accounts and conduct transactions via Bank of Yokohama’s Internet and telephone banking services, such as Hamagin My Direct. In October 2015, Bank of Yokohama also launched smartphone applications that allow users to open bank accounts, as well as check their account balances.
Housing Loans: Bank of Yokohama offers housing loans that are tailored to its customers’ life plans, financial conditions and needs with respect to building and purchasing homes and apartments. Majority of these housing loans are long-term loans that have floating rates adjusted every six months based on the short-term prime rate. Almost all of the housing loans are secured by the property owned by the borrower. As part of its housing loan-related services, Bank of Yokohama assists its customers in arranging transfers of mortgages from other financial institutions. Yokohama Guarantee Co., Ltd. (Yokohama Guarantee), a consolidated subsidiary of Bank of Yokohama, also provides credit guarantees in connection with Bank of Yokohama’s housing loans and other consumer loans. In a typical credit guarantee arrangement, a borrower enters into a loan agreement with Bank of Yokohama and Yokohama Guarantee guarantees the borrower’s payment obligation under the loan to Bank of Yokohama in return for a one-time credit guarantee fee from the borrower. As of March 31, 2016, Bank of Yokohama provides housing loans for individual customers mainly through its Housing Loan Centers located at Kanagawa and Tokyo Prefectures. Bank of Yokohama also offers housing loan consultations over the telephone and online preliminary loan applications.
Consumer Loans: Bank of Yokohama offers unsecured loans to serve specific financial needs, such as car loans, student loans and home-improvement loans. It also offers loans that could be used for general purposes, including loans for general living expenses and other personal uses. Bank of Yokohama also offers its Card Loan program, which provides customers with same-day notification of loan approval results without the need for an in-person visit to a branch location. In 2014, it began offering preferred interest rates for car loans, education loans, and loans for general living expenses that are only available through online applications.
Investment Products: Bank of Yokohama offers for sale a range of investment products to serve the asset management needs of its customers, as well as various types of life insurance products. As of March 31, 2016, it offered 114 investment fund products, 38 of which were offered exclusively via online and telephone banking, and 58 life insurance products, including single premium and level premium individual annuity insurance and whole life insurance, as well as protection-type life insurance, such as term insurance and health insurance. Bank of Yokohama also offers the core investment strategy fund, which aims to generate income that reflects the growth in the global economy while controlling short-term downward risks through long-term diversified investments. In 2014, Bank of Yokohama began offering Nippon Individual Savings Accounts which are specialized accounts used in connection with Japan’s newly introduced program that provides certain tax break to individual investors for small investments in Japanese and foreign equity securities and investment funds. In 2014, Bank of Yokohama and Sumitomo Mitsui Trust Bank, Limited (Sumitomo Mitsui Trust Bank) jointly established Sky Ocean Asset Management Co., Ltd. (Sky Ocean), an asset management company and a consolidated subsidiary of Bank of Yokohama. Sky Ocean utilizes Sumitomo Mitsui Trust Bank’s infrastructure and know-how concerning asset management to develop stable investment fund products that could be held by Bank of Yokohama’s customers over the long term.
Inheritance-related Services: To serve the needs of its customers arising from Japan’s aging population, Bank of Yokohama provides inheritance-related services, including forming, or advising on the formation of, individual trusts and testamentary trusts, estate administration and estate planning, through its business alliances with Asahi Trust Co., Ltd. and Yamada Escrow and Trust Co., Ltd., both of which are third-party trust companies.
Education Savings: Bank of Yokohama offers an education savings plan that is exempt from Japan’s gift tax when a monetary contribution is paid or deposited for the purpose of covering education costs.
Hamagin My Direct: Internet banking services are offered through Hamagin My Direct, which is available to individual, as well as corporate customers via computers, smartphones and other mobile devices. Hamagin My Direct allows customers to confirm balances, initiate cash transfers and make partial repayments on mortgages, as well as other transactions involving term accounts, investment funds, foreign currency deposits, Japanese government bonds and card loans.
Corporate Banking
The corporate banking business offers deposit products, various forms of financing, business consulting services, such as M&A advisory services and support for overseas expansion to serve corporate customers, particularly small-and medium-sized enterprises.
Deposit Products: Bank of Yokohama offers various deposit accounts and products for corporate customers. Its deposit product offerings allow customers to select the products suited to their savings needs, including ordinary deposit accounts, as well as short and long-term time deposit products. Bank of Yokohama also offers time deposit products with higher returns, including foreign-currency and variable-rate products. Corporate customers might also access their accounts and conduct transactions via Bank of Yokohama’s Internet and telephone banking services.
Business Loans: Bank of Yokohama provides loans to corporate customers in a variety of industries, including the real estate, manufacturing and wholesale and retail industries. To meet the various needs of its corporate customers, such as for new businesses, expansion of existing businesses and working capital, Bank of Yokohama offers various business loans, including lines of credit and term loans that are generally two to five years in term. Majority of the business loans are with floating rates that are adjusted every month based on either the market or the short-term prime rate and a majority of the loans are usually secured by borrower’s real property, receivables, securities and deposits. As of March 31, 2016, Bank of Yokohama offered business loans through approximately one-third of its branch locations, which service mainly medium-sized enterprises.
Business Consulting: Business consulting forms an important part of the support Bank of Yokohama provides to its corporate customers at various stages of their development, starting at establishment, then growth and beyond. In addition to various types of financing tailored to the needs of the business, such as syndicated loans, Bank of Yokohama also provides information and know-how to its customers, including business matching services in which it introduces customers to potential business partners and assistance with collection of receivables as the business seeks to expand existing sales channels. For businesses that are seeking to expand overseas, Bank of Yokohama also provides support for overseas expansion, such as introduction of companies located overseas that are engaged in the import business.
Support for Overseas Expansion: Majority of the existing and potential corporate customers of Bank of Yokohama, which derive a large portion of their revenue from outside of Japan, have a significant presence overseas. Bank of Yokohama provides financial services to its clients who are developing their business in China through its Shanghai branch. Bank of Yokohama also handles RMB-denominated transactions to meet the need for RMB-denominated funding of such clients. In addition to its Shanghai branch, Bank of Yokohama has representative offices in Hong Kong, Bangkok, New York and London. It also has an extensive network of affiliated banks throughout Asia, including Bank of China, Bank of Communications and Bank of East Asia in China, Bangkok Bank in Thailand, Australia and New Zealand Banking Group, as well as Joint Stock Commercial Bank for Investment and Development of Vietnam in Vietnam, Bank Maybank Indonesia in Indonesia, Metropolitan Bank and Trust Company in the Philippines, State Bank of India in India and Standard Chartered Bank in Southeast Asia.
Securities Brokerage Services: Bank of Yokohama offers securities brokerage services through its consolidated subsidiary, Hamagin TT. Hamagin TT’s services include securities brokerage services, investment consulting and online trading. Hamagin TT offers for sale various financial products, including Japanese and foreign debt and equity securities and investment funds, real estate investment trusts, or REITs, and exchange-traded funds, or ETFs.
Leasing Services: Bank of Yokohama offers equipment leasing services for companies operating in a range of industries through its wholly-owned subsidiary, Hamagin Finance. In a typical leasing arrangement, Hamagin Finance enters into a purchase agreement with an equipment manufacturer and leases the purchased equipment to its customer in return for lease payments pursuant to an equipment lease agreement between Hamagin Finance and its customer.
Other Financial Services: Bank of Yokohama offers other ancillary financial services to its customers through its consolidated subsidiaries, Hamagin Research Institute and Yokohama Capital.
Higashi-Nippon Bank
Higashi-Nippon Bank is a regional bank that conducts its business primarily in central Tokyo and also operates in the neighboring prefectures of Ibaraki, Kanagawa, Saitama, Chiba, and Tochigi. Together with its consolidated subsidiaries, Higashi-Nippon Bank offers a range of banking products and services, including deposits, loans, foreign currency exchange and other financial services, such as credit guarantees for home loans and credit cards.
Corporate Banking
Higashi-Nippon Bank’s corporate banking business offers various loan products, as well as financial consulting and Internet banking services to support the needs of its corporate customers, mainly small- and medium-sized enterprises.
Deposits: Higashi-Nippon Bank offers a range of deposit products for its corporate customers, including demand deposits, ordinary deposits, time deposits, certificates of deposit and foreign currency-denominated deposits.
Business Loans: Higashi-Nippon Bank provides loans to corporate customers, mainly small-and medium-sized enterprises, in various industries, including the real estate, wholesale and retail, manufacturing and construction industries. These business loans generally have variable interest rates (adjusted every six months) and an average term of one to three years for working capital loans and 10 to 15 years for equipment purchase loans. The term of construction loans are for up to 30 years. To provide flexible loan products that are not overly dependent on collateral or credit guarantees, Higashi-Nippon Bank offers various unsecured loan products, such as the New Vigor Loan and the Good Partners Loan. The New Vigor Loan is a loan product for first-time customers of Higashi-Nippon Bank that meet certain eligibility conditions. The Good Partners Loan is a loan product that is designed to quickly meet the cash flow needs of small- and medium-sized enterprises and individual business owners. Higashi-Nippon Bank is particularly focused on supporting businesses in certain growth sectors, including the environmental sector and the health and long-term care sector. Higashi-Nippon Bank is also focused on supporting start-up businesses, including through the Tokyo Metropolitan Government’s start-up loan program. It also works with other public finance schemes and the prefectural governments across Japan in providing financing for start-up businesses, mainly in central Tokyo. In connection with its business loans, Higashi-Nippon Bank also arranges asset-based lending guarantees and debtor-in-possession guarantees through third parties.
Business Consulting: To support customers seeking to further expand their existing sales channels and business partnerships, Higashi-Nippon Bank offers business matching services through which Higashi-Nippon Bank introduces customers to potential business partners. Higashi-Nippon Bank also provides referrals to various types of third-party business consultants, including in the areas of business succession, M&A advisory, ISO (International Organization for Standardization) quality management, equipment leasing and taxation, to build long-term relationships with these customers.
Overseas Expansion Support: Higashi-Nippon Bank focuses on offering products and services in support of corporate customers who are entering new overseas markets, especially in Asian countries. Higashi-Nippon Bank caters to the real estate-related needs of its customers, including assistance in connection with the opening of an overseas office, through its partnership with Tokyo Tatemono Real Estate Sales Co., Ltd.
Retail Banking
Higashi-Nippon Bank’s retail banking business provides various financial services to individual customers. It offers an array of financial services, including deposit products, housing loans, and other types of consumer loans, as well as sales of investment funds and insurance products. To improve accessibility for its customers, Higashi-Nippon Bank offers ATM coverage, such as Japan Post Bank Co., Ltd.’s ATM network, East Japan Railway Company’s VIEW ALTTE ATM network, AEON Bank, Ltd.’s ATM network, and the convenience-store based ATM networks of each of Seven Bank, Ltd.; E-net Co., Ltd.; and Lawson, Inc. In March 2015, Higashi-Nippon Bank started to provide ATM network services in collaboration with Bank of Yokohama, which has enabled customers of Higashi-Nippon Bank and Bank of Yokohama to use both banks’ ATM networks in the metropolitan area mainly in Tokyo Prefecture and Kanagawa Prefecture.
Deposits: Higashi-Nippon Bank offers a range of deposit products, including ordinary deposits, saving accounts, time deposits, and foreign currency-denominated deposits.
Loans: Higashi-Nippon Bank provides housing loans with various terms and interest rates to meet diversified customer needs such as the purchase of homes and apartments. In particular, refinancing housing loans are one of the primary products offered by Higashi-Nippon Bank to individual customers. Higashi-Nippon Bank offers various unsecured consumer loan products, including education loans, car loans, elder care loans and card loan products, to its individual customers. In October 2015, to meet the financial needs of more customers, Higashi Nippon Bank launched ‘Super Loan’ which allows customers to borrow on an unsecured basis up to ¥10 million without restriction on use.
Investment Funds: Higashi-Nippon Bank offers for sale various investment funds with varying risk-return profiles, including investment funds that invest in an array of REITs in the United States and other foreign countries, as well as Japanese and foreign equity investment funds.
Insurance Products: Higashi-Nippon Bank offers for sale single-premium whole life insurance, whereby customers who make a one-time payment upon subscription receive lifetime death benefit protection. It also sells a range of insurance products, including individual annuity insurance, cancer insurance, medical insurance and home fire insurance.
Internet-based Services: Higashi-Nippon Bank’s individual customers are able to confirm account balances and make remittances through Higashi-Nippon Bank’s Internet banking service, which had approximately 15,000 registered users at March 31, 2016. Higashi-Nippon Bank also operates its Internet-based branch, the Oedo Nihonbashi branch, which allows customers to access Higashi-Nippon Bank’s services on the Internet without the need for an in-person visit to a physical branch location or teller window. Higashi-Nippon Bank also launched the Oedo Nihonbashi Card Loan program, an unsecured card loan product without restriction on use that customers could apply for through the Internet.
Strategy
The company's strategy is to contribute to creating a vibrant future as a trusted financial group and to improve its corporate value together with the growth of the region by providing the best financial services to its customers through collaboration that utilizes the strengths and uniqueness of each group company.
Regulation and Supervision
The company operates as a joint-stock company incorporated under the Companies Act. Its business activities are subject to significant regulation and supervision by The Financial Services Agency of Japan and The Banking Act.
