Promotion of Financial Digitalization（DX）

For our vision of being “a solution company rooted in communities and selected as a partner to walk together”, we will contribute to the sustainable development of local communities by delivering new experiences and value to local customers through financial and non-financial services using digital technology, and by supporting business growth by providing advanced digital solutions.

In the rapidly advancing digital society, all kinds of information is converted into data and connected, and people enjoy various conveniences by utilizing this data.
The Group will make the best use of this digital society and provide optimal proposals based on one-to-one communication with customers. In addition, we will create new customer experiences by improving customer convenience through the advancement of solution services and the promotion of cashless payments, will support digitalization, and will continue to develop human resources to provide these services.

Initiatives by the Bank of Yokohama

Initiatives by Higashi-Nippon Bank

Our Corporate Portal (Business Connect) was introduced in December 2022. In addition, we are also promoting the use of RPA to improve operational efficiency within the bank and are promoting internet banking (IB) to our customers.

The Bank of Yokohama introduced “Semi-Self-Service Teller Machines” at 29 branches by March 31st, 2021, where customers can make deposits and withdrawals themselves using their cash cards with the assistance of Bank of Yokohama staff at “Quick Counter ATMs”. In order to further improve the efficiency of operations at branches and to increase convenience for customers, we will continue to move forward with the introduction of this teller window, as well as the transition to next-generation branches, including the establishment of TV teller windows and the upgrading of the “AGENT” next-generation sales branch tablet terminal.
With “AGENT” we have completed development for major transactions (account opening, change of address, inheritance acceptance, etc.) and are now undertaking in-house development, focusing on functional improvements and operations with high transaction volume. In June 2023, we implemented a cash card replacement/issuance function.
In February 2023, we began offering advance reservations for inheritance procedures through a TV counter at five branches. We are gradually expanding the operations and working to provide detailed services through the specialist departments at headquarters.

In April 2023, the Bank of Yokohama introduced the “Visit Reservation Service” to all its branches. This service allows customers to reserve a date and time to come in for transactions such as opening an ordinary deposit account, changing personal information and registered seal details, etc. In principle, customers can make such reservations 24 hours a day, 365 days a year, via the Bank of Yokohama website using a smartphone or computer. Customers with reservations are given priority when they visit the branch. Through the introduction of this service, the Bank of Yokohama aims to reduce waiting times when customers visit its branches.

The Bank of Yokohama has been expanding non-face-to-face transactions focusing on change of address, payment of taxes and various fees, transfers, and account openings, and from March 2023, procedures related to lost/reissued cards and passbooks became available through the application and on the website. In addition, starting in September 2022, we are supporting non-face-to-face customer transactions through our “Hamacierge Online Service,” that allows customers to complete procedures via an app, website, or telephone without going to a counter or ATM. The percentage of non-face-to-face transactions has increased to 37% as of March 31, 2023. We will continue to expand non-face-to-face transactions to enhance customer convenience.

As contact with customers is shifting from face-to-face to non-face-to-face, the smartphone app “Hamagin App” for personal customers has grown to become the most important channel, and as of March 31, 2023, it is used by 1.09 million Bank of Yokohama customers.
The Bank of Yokohama updated the Hamagin App in April 2023 and provided the smartphone app “Hamagin App” . With Hamagin 365, we will expand non-face-to-face transactions by making all functions available in a single application. At the same time, we will pursue the provision of functions that meet the needs of customers’ lives, such as providing notices to our customers.

Since January 2020, the Bank of Yokohama has been offering Hamagin Business Connect, a membership portal site for corporate customers, as a non-face-to-face service aimed at improving customer convenience, and as of the end of March 31, 2023, we have 39,000 corporate customers using the site.
From November 2022, with the aim of enhancing digital communication with customers, we integrated the login screen for Hamagin Business Support Direct, our Internet banking service, into Hamagin Business Connect and offer a new Free Monthly Plan. The Free Monthly Plan allows one user to use the fund deposit transfer service and inter-account transfer service, which provide immediate transfers (up to ¥3 million per day) and pay taxes and various fees, free from any basic monthly charge.
In December 2022, we also launched a service to post corporate advertisements on Business Connect for the purpose of helping customers increase sales and promote their products and services. The Higashi-Nippon Bank also began offering Higashi-Nippon Business Connect from December 2022.

In anticipation of the future shift of our accounting systems to cloud computing, we are sequentially shifting to cloud computing starting with systems that are farther away from accounting systems.
As of March 31, 2023, 28% of our major systems have been moved to the cloud.

To achieve our digital strategy and to deal with increasingly sophisticated cybersecurity risks, we will allocate management resources to strategic investments (*1) and security investments (*2) in a focused manner. As of March 31, 2023, we had allocated 24% to strategic investments and 3% to security investments, and will continue to focus on these allocations.
On the other hand, the cost of the existing systems must be significantly reduced. We will establish a Productivity Improvement Committee at Higashi-Nippon Bank and use the System Strategy Liaison Meeting that we host and control the investments of both banks. We will also actively promote cost sharing through alliance expansion.