Banks take risks themselves Local banks embark on inn management October 18, 19:22

"Increase the prefecture's GDP by 10% = 350 billion yen in 10 years"


It is not a promise of some prefectural governor's election.

In fact, it is the goal of a local bank's business plan.


The management of a luxury inn is about to start in order to achieve the goal.


Banks Enter the Accommodation Business?

Where exactly is that aim?


(Osaka Broadcasting Station Tomokazu Kogi Reporter Junpei Noda Director)

Unusual goal, "fierce debate" even within the bank

The


Nanto Bank, the only regional bank in Nara Prefecture, has set an unprecedented goal as a financial institution that

"increases the prefecture's GDP by 10% = 350 billion yen in 10 years

."


In 2019, we have renewed our management plan for the next 10 years.



"Is it appropriate for us to set goals that the government (government and local governments) can set?"


"How do we achieve them in the first place?"


Said Ryuichiro Funaki, managing director of Nanto Bank.

After joining Fuji Bank (now Mizuho Bank), Managing Director Funaki joined Nanto Bank through a management consulting company and the Financial Services Agency.


This is a different kind of regional bank that has a strong "pure blood principle" to train new graduates and promote them to executive positions.



Managing Director Funaki talks about the true intention of setting new goals.

Managing Director Funaki


"Until now, banks have been lending money, but they said,'The customers are the ones who actually do it, please do your best.' Instead, they share risks to revitalize the local economy. We will do our best. Ultimately, there is a strong sense of crisis within the current bank that we will not know what will happen to our existence base unless we rebuild the local economy, and we will set this goal. rice field"

Focus on local issues

An exceptional goal set at the end of a confusing debate.


To achieve this, we have newly launched a new company, "Nara Mirai Design".



It


can be said that it is a company that symbolizes the attitude that

"banks

themselves

take risks"

.



The deregulation of the country has made it possible to enter the previously restricted “non-financial businesses”, which also helped.

The president is Naoki Ota, who is also an executive officer of the bank.


A total of 8 people, mainly those seconded from banks.


What should be done for regional revitalization?


After repeated discussions, the central policy of the company was "to look at the issues facing the region."

Number of guests Nara prefecture, the lowest in Japan

One of the major issues facing Nara Prefecture.


That is the "accommodation business."



Speaking of Nara Prefecture, there are many tourist attractions such as Nara Park, which is famous for deer, and Horyuji Temple, which is related to Prince Shotoku, and many people may have the image that related industries are thriving.


However, in fact, the number of people staying at hotels and inns in the prefecture is the smallest in Japan.

The reason is that many customers come from Osaka and Kyoto on a day trip.


Especially in the central and southern part of the prefecture, there are few accommodation facilities and people do not flow.



So the new company first decided to build its own accommodation in this area.


By doing so, I thought that the number of tourists staying would increase and the area would become more lively.



President Daejeon himself ran around in search of candidate sites.


The president himself says that his attitude and way of thinking as a bank clerk has changed significantly.

President Daejeon


"The way of thinking of business has changed from" to companies "to" to regions ", and the mission has become to solve the problems of the entire region. It has changed to a "player" that makes up for the lack of money. It's an experience that banks have never had before. "

What accommodation are you aiming for?

Daejeon and his colleagues arrived at a 100-year-old folk house in Yoshino Town in the southern part of the prefecture.


In late September, I bought the ownership from the organization that managed the old folk house.


Originally a mansion where local celebrities lived, the site area is about 1000 tsubo.



Over the next few years, the accommodation facility will be renewed, and the warehouse where books have been stored will also be used as guest rooms.


Targets include wealthy people and foreign tourists.


We are aiming for a "stay-type" inn with a small number of rooms.

We would like to make use of the “strengths unique to regional banks” to enhance their attractiveness.


The key person is a bank clerk from his hometown of Yoshino.


We are considering whether we can take a tour to experience nature at a hidden spot known to those in the know, such as a quiet waterfall in the depths of a forest that we visited when we were little.

Even if the number of guests is small, we would like to create the appeal of being able to stay in the area comfortably and secure profitability.



If the accommodation facilities get on track and restaurants are opened in the vicinity, a new flow of people may be born.


Mr. Daejeon and his colleagues want to use accommodation facilities as a base to revitalize the local economy.

President Daejeon


"It costs a certain amount, but I hope that it will be a successful example by making it a base for regional revitalization. We know the best information about the region, and the locals People are familiar with it. I think the new company's business will be one way to survive as a regional bank. "

There are other "triggers" for activation

The new company has also launched a new sales site on the Internet that handles special products in the prefecture.


We handle foods that are produced in small quantities in the area and handmade crafts by craftsmen.


Employees who think that there are many specialty products in Nara prefecture that are not well known to people outside the prefecture.


Employees walk around the area themselves, aiming to disseminate products that are known only to local banks, which are not found on major sites.



On the site, episodes such as the history of the product and the relationship with the region are also transmitted.


We would like to encourage them to become fans of the region and to actually visit them.

Will the effort work?

Will this effort really work?


Many people will have doubts.


For some people, the appearance of banks after the burst of the bubble economy, which has fallen into unstable management due to excessive financing of real estate such as hotels, may have come to mind.

This time, Nanto Bank will receive support from a company with know-how in the accommodation business, but frankly, we also felt that it was not easy.



The same is true for the members of the new company, including President Daejeon.


However, if we do not sow the "seed" now, looking 10 or 20 years from now, the local economy will decline.


The strong sense of crisis is pushing the backs of our employees.



The company also believes that these efforts will lead to the development of new human resources who will lead the future of banks.

Managing Director Funaki


"When an employee with such experience returns to a general branch office, I hope that he will be able to make more in-depth proposals for further business growth, rather than simply examining the customer's loan. In the long run, there will always be synergies somewhere. "

Regional banks at a crossroads

After the burst of the bubble economy, the problem of non-performing loans became serious, and banks were required to lend cautiously.


Banks are said to be “unwilling to take risks”, and that's why they have been around for so many years.

But now, regional banks are at a major crossroads.


The business environment surrounding regional banks has deteriorated against the backdrop of ultra-low interest rates due to the BOJ's monetary easing and the declining population of the region.


It is a situation of "no waiting".



However, even under these circumstances, there are signs of change in the culture peculiar to banks.



Although it is still small, it is a venture company with a future.


Technology that has the potential to solve global challenges, although it is difficult to determine success.


Banks are also actively responding to loans to these companies and technologies.

It is not yet known how successful Nanto Bank's business will be.


The rebuilding and revitalization of the regional economy, which was hit by the new corona, is becoming more important.



To what extent can this challenge of reassessing the importance of the region help banks to strengthen and revitalize themselves?


I would like to look at the process.


Tomokazu Kogi


, a

reporter for the Osaka Broadcasting Station,

joined in 2007.


Covered the financial industry at the Ministry of Economic Affairs, and is currently in charge of economics at the Osaka Bureau.


Junpei Noda,

Director of Osaka Broadcasting Station


Joined the

station in

2007.


After working in the news bureau, political affairs, and international program department, the Osaka bureau.


Mainly in charge of news programs.