Retail & Business Banking Company
Offering more sophisticated and speedier services than before spanning seamlessly the range from banking, trust banking, securities to asset management and research & consulting to a wide variety of customers
The Retail & Business Banking Company was formed through the consolidation of the Personal Banking Unit, Retail Banking Unit, and Corporate Banking Unit. This Company provides services to individual customers, small to medium–sized enterprises (SMEs) and middle–market corporations.
For individual customers, drawing on the Group's capabilities, the Company offers optimal products and services, in ways that comprehensively satisfy customer needs in the fields of asset management and asset succession. Moreover, Mizuho has banking branches in every prefecture in Japan and stands No. 1 among Japanese megabanks in ATM network and number of joint branches through which it provides banking, trust banking and securities services. Mizuho is also working to increase customer convenience through initiatives that include further developing and increasing the sophistication of its Internet and smartphone banking services.
For SMEs and middle–market corporate customers, the Company provides the best solutions swiftly for their management issues such as growth strategies, dealing with business inheritance issues, launching overseas operations, and others. For corporate owners and others, the Company responds to the wide range of needs of customers for assistance in asset succession, asset management, and other matters by formulating optimal solutions in an integrated manner among banking, trust banking, securities, asset management, and research and consulting functions in the Group.
- *All figures for the number of offices are as of June 30, 2016
Key Aspects of the Company
Conditions in the External Environment
- Concerns about the slowdown in the global economy, changes in the business environment resulting from negative interest rate policies
- Increasing prominence of the shift from savings to investment and the business inheritance issues
- The greater entry into financial sector by companies in other businesses utilizing Fintech
Issues for Mizuho
- Accelerate integrated strategies for banking, trust banking, securities, asset management, and research and consulting as well as integrated strategies for corporations and their owners
- Structuring efficient front–line systems and optimizing service channels
- Expansion of services for beginner and early–stage investors
- Group's areawide strategy promotion structure
- Customer base and channel network
- Corporates: About 600,000 customers
- Individuals: About 24 million
- Staffed locations: 790 locations
New Medium–term Business Plan for the Company (FY2016 through FY2018)
Pursuing optimal solutions to a variety of customer needs and realizing reforms in the profit structure with balance sheet control
Along with changes in the financial environment and rapid progress in financial innovation, customer needs are becoming more and more diverse, sophisticated, and global in scope. By demonstrating comprehensive financial services consulting capabilities, with the group companies working together as a whole, Mizuho will not only respond to emerging customer needs but also identify latent needs and issues that customers have yet to realize, and then offer optimal services.
The Group is steadily expanding its transactions base by supporting individual customers in encouraging their shift from "savings to investment" by providing optimal proposals for responding to their needs for asset management, asset succession, and other services. We are also developing new business domains by innovating businesses that make use of new financial technologies, such as Fintech, and big data.
For small to medium–sized enterprises (SMEs) and middle–market corporations, we are providing support for their growth strategies based on our comprehensive financial services consulting capabilities while also strengthening our initiatives related to business inheritance, initial public offerings (IPOs), and other activities. Through these initiatives, the Group is working together to provide optimal integrated solutions to meet the needs of both corporations and their owners.
- Net Business Profit for Fiscal 2018 (Plan)
- *Before head office expense deduction
- Assets under Management (left scale), Number of Customers (right scale)
- Consulting Support (number of cases)
Major Strategies under the New Medium–term Business Plan
Providing Solutions that Support Sustainable Growth of Customers and Society
The new Area One MIZUHO Promotion Project
To provide the highest quality integrated financial services to customers, drawing on Mizuho's banking, trust banking and securities capabilities, Mizuho initiated its Area One MIZUHO Promotion Project in fiscal 2014. The banking, trust banking and securities functions in each region convene meetings to identify, from a wide perspective, and then implement what will be necessary to become "the most trusted financial services group."
Beginning in fiscal 2016, Mizuho newly launched its Area One MIZUHO Promotion Project with the aim of growing together with regional economies and societies, confront the issues that must be addressed in each region through integrated banking, trust banking and securities functions, and then implementing initiatives to solve various issues in collaboration with regional governments, regional financial institutions, local businesses, members of regional communities, and others. By building cooperative relationships with local cities, towns, and villages as well as regional banks, local chambers of commerce and others, Mizuho will be able to take active initiatives in counteracting the decline in local regions due to shrinking population, the rise in welfare and medical needs along with the demographic aging of the population, and, thereby contribute to regional economies and societies.
Review of Fiscal 2015
Responding to wide–ranging customer financial needs and steadily expanding the transactions base for asset management, corporate lending, etc.
Offering each and every customer optimal products and services, providing in–depth responses to the financial needs of individual customers, we widened the customer base for asset management.
In addition, through the introduction of asset management roboadvisors utilizing Fintech, strengthening smartphone and SNS services, etc., we took initiatives to increase customer convenience. As a result, Mizuho has been awarded the Mobile Computing Promotion Consortium (MCPC) award for five consecutive years.
- Number of Individual Customers Using Mizuho's Investment Products
SME and Middle–market Corporations
In addition to responding actively to fund–raising needs, we offered a wide range of solutions for corporations and their owners that include solving management issues, helping asset succession arrangements and managements for business owners and other customers, and, thereby, worked to expand our customer base.
We also provided support for corporate growth strategies from a "market–in" standpoint, offering assistance in M&A, formulating corporate strategy and financial strategy in entering overseas markets, while also offering support for business inheritance and other related matters appropriate to the growth stage of each customer. Through these activities we endeavored to assist customers in increasing their corporate value.
- Number of Corporate Customers (Number of primary corporate customers)
- Balance of Loans to Middle–Market Corporations, SMEs, etc.
Initiatives to support innovative start–ups
For innovative start–ups that have superior technology and ideas, Mizuho provides both loans and equity financing, while also actively offering business development opportunities such as business matching as well as through collaboration with industry, academia, and government ministries. Other assistance includes holding seminars for training and mentoring.
In April 2016, MHBK newly established its Innovative Start–ups Coordination Department, and MHSC formed a Strategic Research Department with the aim of improving and strengthening our initiatives to support start–ups. Through these activities, Mizuho aims to provide financial support that will lead to sustainable growth in Japanese economy and creation of new jobs.
- Note:The above contains statements that constitute forward–looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See the disclaimer at the bottom of page 3 of 2016 Integrated Report(PDF/10,751KB) for information regarding factors that could cause actual results to differ from those in the forward–looking statements.