Customer-Focused Business Operations

As part of our commitment to customer-oriented business operations, we have formulated and published our “Declaration of Fiduciary Duty”, which was approved by the Board of Directors. The Bank of Yokohama, the Higashi-Nippon Bank, and THE KANAGAWA BANK have adopted a policy based on this Declaration and are working to conduct customer-focused business operations.

1.The Group shall focus on its customers and support the formation of portfolios that are consistent with their true needs and interests.

2.After accurately identifying customers’ needs, the Group shall provide products and services that create real profit for its customers. We will also build and implement a product governance system to achieve this.

3.The Group shall accurately and promptly inform customers of information related to products and services as well as market trends and other information.

4.The Group shall appropriately manage the selection of products and provision of information to customers, to ensure that customers’ interests are not unfairly harmed.

5.The Group shall create an appropriate customer-oriented sales structure and establish systems to verify its effectiveness.

6.Aiming to provide optimal products and services to customers, we will develop human resources with a high level of expertise in the field of finance and cultivate a strong sense of responsibility to meet the expectations of our customers.

Each group company has established a department to supervise customer-oriented business operations and a risk management department. The supervising departments oversee overall customer-oriented business operations by formulating annual plans based on the Declaration and report regularly to the Management Committee etc., developing internal systems, reviewing and monitoring products and services, enhancing training, and conducting customer surveys. The risk management departments monitor customeroriented business operations from the perspective of customer protection, ensuring the suitability of product proposals and the provision of information, ensure the suitability and sufficiency of each function through periodic reports to the Board of Directors, and provide guidance for relevant departments. In addition, the Board of Directors of the Group supervises the efforts of each Group company.

In addition to complying with all applicable laws, regulations, and rules in the sale of financial products, we will solicit business appropriately in accordance with the solicitation policies set forth by each company and comply with relevant laws, ordinances, etc. concerning the protection of customers’ personal information and work in accordance with the policies set by the company.

In order to steadily implement customer-focused business operations based on the Declaration, the Bank of Yokohama Group has established an FD Promotion Committee at the Bank’s head office to evaluate and confirm the status of the implementation of fiduciary duties and to hold cross-organizational discussions and considerations regarding necessary responses and improvement measures.

The Bank of Yokohama has adopted a policy based on the Declaration and is working to conduct customer-focused business operations in order to realize true benefits for customers. In addition, we disclose indicators related to the results of customer- focused asset development and management proposals.

Furthermore, we have prepared an informative document entitled “Four Promises and Two Ideas” summarizing our approach to asset management based on the Declaration in an easy-to-understand manner and using it in asset management proposals and during follow-up.

The Bank of Yokohama is committed to realizing the true interests (best interests) of its customers, and proposes portfolios that contribute to medium-to long-term asset building that meet the true needs and interests of its customers. In making proposals to customers, we adopt a “goal-based approach” (^*). We check the customer’s investment experience and knowledge, income, asset situation, and investment objectives, and carefully listen to their thoughts on their goals for their future life plan.

Using the “Wealth Advisor”, a portfolio analysis tool, and the “Money Plan Guidebook”, an information provision tool, we engage in dialogue with clients to support optimal asset building and asset management, including asset diversification and time diversification, in order to accurately meet the needs of each client in pursuit of their respective goals. During follow-up visits, we check to see if there have been any changes in their thinking or life plan. If so, we redefine the goals and continue to provide operational support to help them achieve their goals.

In selecting products, we take into account the economic environment and market trends. We offer a lineup of products to meet the needs of our customers, from among not only those handled by our group companies, but also from among those handled by a wide range of money-management firms and insurance companies. In addition, we monitor and check the quality of the products even after their introduction. Twice a year, we have a third-party evaluation organization^*analyze their performance. If the results are not satisfactory, we consider stopping sale of the product.

The Bank of Yokohama has introduced Important Information Sheets for both financial service providers and for individual products in order to provide customers with easy-to-understand important information on medium-to long-term asset development and asset management and in order to enable easy comparison of the following items.

The Important Information Sheets also provide a clear comparison of the level of fees for each product. We use the Important Information Sheets to provide easy-to-understand explanations of the investment products we handle across the board, while listening to the thoughts of our customers.

The Bank of Yokohama conducts an annual customer satisfaction survey to gauge customer satisfaction in order to seek the candid opinions of our customers. We ask our customers to evaluate our efforts directly and use the results to improve our products and services. We continue to improve our efforts to become the bank and staff of choice by offering proposals that contribute to long-term asset development and asset management and by providing regular follow-up services to give customers confidence after purchase (signing of contracts).

We conducted training, study sessions, and e-learning related to customer protection and compliance for all employees responsible for personal customers throughout the year to raise awareness. In addition, we are working to develop human resources with advanced expertise by encouraging staff to acquire qualifications related to customer protection etc. In particular, we are actively working to develop human resources with expertise and skills appropriate for financial professionals by encouraging them to acquire FP (financial planner) qualifications. In particular, we are working to increase the number of people obtaining FP Grade 1 and CFP qualifications, and the number of new qualification holders is increasing year by year, with 29 people in FY2022 and 49 people in FY2023.

The status of our efforts for customer-oriented business operations is reflected in the personnel evaluations of both management and staff members. We are working to raise awareness of customer-oriented business operations from the standpoint of personnel evaluations of both management and staff members.