Feature Article Regional banks’ overseas development support strategies 5
Formed by the April 2019 merger of Kinki Osaka Bank and Kansai Urban Banking Corporation, Kansai Mirai Bank is a regional bank operating primarily in the six Kansai prefectures of western Japan and a Resona Holdings subsidiary.
HIRAYAMA Tomoyoshi, bank’s executive officer, says, “For clients considering overseas expansion, we provide support in stages, from information such as the local economic situation and political background to the introductions to knowledgeable consultants. Although our bank and the Resona Group have a strong domestic image, we also provide overseas support.”
Using the strengths of the Resona Group's network, including its overseas offices and local banking partners, the bank also provides financial support in collaboration with JBIC to MTEs and SMEs that are expanding overseas.
“Support through JBIC often takes the form of issuing standby letters of credit to guarantee loans by local subsidiaries and financing intercompany loans through parent companies.”
A scene from a business exchange meeting hosted by Kansai Mirai Bank in Bangkok, Thailand. These meetings also provide opportunities for business matchups and understanding the needs of companies.
Overseas expansion by the bank’s MTE and SME clients has increased in recent years. While traditionally coming from the manufacturing sector, momentum is now growing in the service industry. The primary focus is on ASEAN countries, due to their increasingly attractive markets. Joint seminars with JBIC attract companies that have already expanded overseas or are considering the possibility, often leading to new agreements. “These seminars are a good opportunity to introduce cases that help companies visualize scenarios and understand our roles and potential.”
A key aspect in supporting the overseas expansion of MTEs and SMEs is the cultivation of talent skilled in overseas operations. As client inquiries about international operations increase, the bank is bolstering its organizational capabilities, by developing skills beyond the usual scope of a regional bank.
Examples include a six-month trainee program on international operations for young staff, opportunities for secondment to overseas representative offices and partner banks, and training for branch manager-level employees through visits to overseas subsidiaries of client companies.
“I’ve traveled to 11 Asian countries, and this experience has convinced me that there are limits to how much your international business sense can be honed through theoretical learning. It is vital to go and actually see firsthand how work is done onsite. Detailed services that only a regional bank can provide, combined with the onsite knowledge gained overseas, will lead us to design concrete and effective projects.”
By continuing to aggressively invest in cultivating globally competent staff, Kansai Mirai Bank will work closely with MTEs and SMEs to build a prosperous future for the Kansai region.
