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Consumer and Commercial Banking CONSUMER AND COMMERCIAL BANKING The Consumer and Commercial Banking unit is made up of the Commercial Finance Group, which looks after the middle, and small- and medium-sized businesses, and the Consumer and Private Banking Group, which looks after the business with individuals. This division of roles is designed to strengthen relationship marketing to provide services that are extremely well matched to the needs of each customer. Commercial Finance Group Strategy 2. Concrete strategies and key issues The Commercial Finance Group emphasizes The Group’s strategy is to provide speedy ser- the following three policies as a means of vices that satisfy the increasingly diversified achieving its goals. and sophisticated requirements of customers First, we are responding positively to support through advanced multiple channels. middle, and small- and medium-sized customers. Hand-in-hand with the use of the Fuji PC 1. The environment facing the Commercial Banking Service and the Collection Management Finance Group and the Group’s role Service, the Fuji Small- and Medium-size As the backbone of Japan’s economy, Japan’s Business Development Fund (amounting to 600 highly diversified middle, and small- and billion yen) allows companies to receive the most medium-sized businesses constitute one of our preferential interest rates available according to most important target business sectors, and we the loan maturity period. are concentrating on it more and more. The We have established a new Commercial Commercial Finance Group specializes in this Finance Business Division which is staffed market, helping the Bank fulfil a major social with selected expert personnel who can deal role by providing energetic support for meet- with the wide-ranging management issues ing customers’ funding needs, and ensuring that affect businesses in the middle market that the financial system functions and and growth industries, including asset utiliza- expands smoothly. The Group works to satisfy tion, stock exchange listing support and busi- the increasingly diverse and sophisticated ness inheritance. In addition to providing needs of customers by offering the most appro- corporate and asset information, they engage priate services speedily and more efficiently. aggressively in consulting activities. To round To this end, it is strengthening its multi-chan- off our unique, comprehensive services in nel networks, which bring together the spe- this area, we work together with The Yasuda cialist functions of key business offices, head Trust and Banking Co., Ltd., which offers office and subsidiaries in a dynamic fusion superior financial advisory services. that brings it closer to realizing its goal of In order to nurture and encourage new offering customers greater satisfaction than business ventures, we provide support any other bank. through the Charitable Trust for Fuji New It is also strengthening its credit risk man- Business Fund. The Fuyo New Business agement systems to maintain and improve the Forum and the Fuyo Eco-Business Conference health of its loan assets and create a strong, also tackle the task by aggressively supporting sound financial structure. new business start-ups. In this way, we are fulfilling an extremely important role in the development of the new technologies and 16 Review of Operations businesses that will underpin the Japanese economy in the future. Furthermore, Fuji Research Institute Corporation has estab- lished a home page on the Internet to provide information on patents, technologies, busi- ness information and other intellectual prop- erty belonging to members of the Fuyo Group and our customers. Known as the Fuyo Techno Library, it aims to promote distribu- The Fuyo Techno Library is a completely new type of tion and interchange of ideas as a means of Internet business site. Prepared by the expert staff of the Fuji Research Institute Corporation, it matches the needs of orga- encouraging technology transfers between CONSUMER AND nizations such as major companies and universities that wish companies. All these activities are designed to to sell the patents, technologies and other intellectual prop- erty or business information in their possession with those of encourage the development of new enter- middle, and small- and medium-sized businesses who wish to prises and the improvement of industrial buy them. In addition to providing a forum whereby hidden potential can be realized in this way, it also allows the net- technologies in a wide range of areas. works of the Fuji Bank and the Fuyo Group to be used in Second, we are constantly working to following up any business developments that may ensue. enhance our advanced, multi-channel net- work to provide our corporate customers BANKING COMMERCIAL By aggressively creating multiple channels with greater convenience at low cost. for transactions with companies, we are ■ We are increasing the number of branches specializ- steadily establishing a structural framework ing in corporate transactions, deploying professionals that enables us to provide customers with strategically in areas close to corporate customers so prompt, efficient services that match their that we can provide specialist products and services on a highly competitive basis. increasingly diverse and sophisticated needs. ■ In addition to our commercial banking business, we Third, we are striving to accelerate have established the new regional business unit progress in improving our asset and profit “Commercial Finance Division” to concentrate on structures. At the same time, as we enhance transactions with large and middle market enterprises the health and efficiency of loan assets, we are that require more specialized services in areas like creating a firmly established profit structure investment banking. ■ We have boosted our head office staff of experts in that seeks to expand our profit sources with- financing to strengthen the functions of our Business out over-reliance on risk-adjusted assets. We Finance Center, which specializes in direct marketing are strengthening our management control to small- and medium-sized businesses. structure, which is built around a risk man- ■ We have reinforced our specialist product divisions agement system that spans the entire bank. which focus on areas like M&A, derivatives and IT- Risk management itself has been reinforced based settlement business in order to respond to the increasingly sophisticated needs of our customers in a by a drastic overhaul of the credit divisions of timely and accurate fashion. the Commercial Finance Group, improve- ■ Anticipating the imminent arrival of the new era of con- ments in our in-house credit rating system solidated management and accounting, we are working and tougher credit risk management and to enhance the synergy of our services through dynamic credit examination systems. fusion of our subsidiary company functions in areas like As a vitally important component of the the trust business, leasing, factoring and finance. Consumer and Commercial Banking unit, the Commercial Finance Group is aggressively tackling these issues in order to ensure that the Fuji Bank becomes a leading bank in the 21st century. 17 Consumer and Commercial Banking Consumer and Private Banking Group 2. Concrete strategies and key issues Strategy The Consumer and Private Banking Group emphasizes the following three issues as a The Group’s strategy is to build the best possi- means of achieving its role. ble relationship with each individual customer The first issue is strong relationship mar- and create a strong sense of mutual trust. keting. This requires that we get to know individual customers better so that we can 1. The environment facing the Consumer provide them with improved services and and Private Banking Group and the thus ensure a higher level of customer Group’s role satisfaction. The first point to note about the environment The first and core feature of our strategy is facing the Consumer and Private Banking the Fuji First Club (FFC). Its objective is to Group is that competition is intensifying as create a steadily increasing group of satisfied a result of Japan’s Big Bang financial reforms. “Fuji fans” through closer, long-term rela- Increasingly, the companies offering financial tionships and mutual communications with services include distribution companies, non- FFC members. Inaugurated in March 1998, banks and other entities from different busi- FFC has undergone numerous upgrades, ness sectors, as well as foreign financial including a point system for deregulated institutions. Japan has really entered an era interest time deposits, and discounted charges of full-scale competition, and market condi- for using ATMs outside normal business tions are becoming tougher by the day. hours. We are delighted that in a period of The second key factor is the growing focus only 12 months, over 200,000 customers on individual customers. Since customers have become FFC members. face a rapidly increasing range of diversified The second feature of our efforts to choices, they have the extremely tough task strengthen relationship marketing has been our of deciding which financial institution or program to upgrade our database infrastruc- financial services best suit their own lifestyles ture. We believe this is the best way to build and sense of values. In other words, the true closer relationships with our customers and value of banking as a service industry has ensure better, more timely communications. come under very close scrutiny. To ensure
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