Feature Article Regional banks' overseas development support strategies 1
Headquartered in Mito City, Ibaraki Prefecture, Joyo Bank is the largest bank in the Northern Kanto region just north of Tokyo. A merger with local competitor Ashikaga Holdings (Ashikaga Bank) formed Mebuki Financial Group.
Joyo has four representative offices overseas: Shanghai, Hanoi, Singapore, and New York. Its mid-tier enterprises (MTEs) and small and medium-sized enterprises (SMEs) clients are mainly targeting expansion into China, Vietnam, and Thailand. Utilizing the group network, Ashikaga Bank's Bangkok office serves our clients expanding to Thailand, while Ashikaga's clients operating in Vietnam receive support from Joyo's Hanoi office, explains TOBA Yoshitsugu, Joyo's director and managing executive officer.
“As Ashikaga Bank has an office in Hong Kong, similar cooperation is also possible in China. In this way we cover all the rapidly growing Asian regions.”
Introducing a Vietnamese company to a client looking to outsource its manufacturing. A local staff member accompanies them and even provides interpretation services.
Of the bank's clients operating overseas, some 40 percent are MTEs and SMEs. Manufacturing accounts for 60 percent, followed by the wholesale industry. Traditionally the model has been to expand from the Northern Kanto region to the Greater Tokyo Area. But recent years have seen more companies looking overseas, particularly within the service sector, such as the food and drink industry and temporary staffing services.
The bank's range of support services for overseas expansion includes procurement of capital and settlement of trade transactions, provision of overseas information, marketing support, establishment of local subsidiaries, development of sales channels, and formulation of business plans.
Forex officers play an important role in supporting the bank's clients in their overseas expansion efforts. They have all worked abroad, directly providing overseas support to clients. The bank divides its territories into four areas, both within and outside Ibaraki Prefecture, and they are assigned to one of these areas.
“By having specialized staff respond quickly to clients considering expansion into foreign markets, we can provide consulting from our position as a community-based financial institution.”
Through co-financing with JBIC, the company has also supported an automotive company's business expansion in Brazil.
“Although we have no group presence in South America, we were able to receive proper support through JBIC's representative office in Rio de Janeiro, which was very reassuring for our client. Partnership with JBIC is very effective because it allows us to meet the needs of our clients for expansion in regions of the world where our bank alone is unable to provide sufficient support.”
From Northern Kanto to the Greater Tokyo Area, and from Asia to the world—Joyo Bank is establishing its global presence.
