Medium-Term Vision
We will build a financial platform focused on the economies of Asia. Our objective is to become a corporate group that enriches the daily lives of local customers.
(1) Targets and Key Performance Indicators
We will improve convenience and productivity by focusing on system (IT) investment in the medium term and promoting digitization. Key performance indicators will include the ratio of bad debt allowance to ordinary income, which indicates reduction of bad debt allowance, and the ratio of personnel expenses to ordinary income, which indicates improved labor productivity. We will also grow domestic businesses while expanding businesses in Asia to increase the ratio of overseas ordinary profit to consolidated ordinary profit. Financially, our objective is to maintain the capital ratio at the 8% level.
Management IndicatorTarget (Year ending March 2019)Consolidated ordinary income+10% compared with the previous fiscal yearBad debt allowance ratio (bad debt allowance/ordinary income)Overseas: 20%Labor productivity (personnel expenses/ordinary income)Domestic: 16%; Overseas: 11%Capital ratioMaintain at the 8% level
(2) Medium- and Long-Term Corporate Strategy
Focusing on building our presence in the economies of Asia, we will use new technologies in Japan and overseas to provide financial products and services that can be used throughout Asia. We will expand our network of affiliated merchants, build a financial platform that connects our customers and affiliated merchants, and promote the use of seamless settlement and services. In addition, we will expand our lineup of financial products according to conditions in the countries we serve. We will also enhance sales and marketing by using data to understand customer needs, provide them appropriate products and services, and enrich their daily lives.
Enhancing Sales and Marketing
We will collect and use data such as customer attribute information and regional information to understand customer needs according to life stage and lifestyle, and we will propose and provide timely, appropriate financial products and services that meet these needs. In addition, we will strengthen the services we provide to affiliated merchants to enable us to provide products, services, marketing and settlement services that meet the customer needs we identify. We will also expand cross-selling of products and services at our company and at affiliated merchants with the goal of enhancing our lineup of settlement and financial products aligned with the growth stage of Asian countries and customer needs.
Building a Financial Platform
We are using new technologies including artificial intelligence (AI) and blockchain to identify customer needs based on settlement and transaction details and provide a foundation for offering financial products and services across multiple channels. We call this our financial platform. We will build this financial platform so that we can enhance settlement convenience in order to serve more customers in more locations. This will involve strengthening the services we provide to stores, enhancing the settlement and inquiry functions we provide via mobile terminals, and adding to the lineup of peripheral financial services we provide to help households manage their finances. Our goals is to expand our lineup of real-time settlement services that are easy to use anytime, anywhere.
Raising the Efficiency of Our Businesses
We will review operating processes in existing businesses to consolidate redundant functions and increase productivity. We will also use AI and other technologies in existing businesses to enhance the efficiency of our businesses and reallocate resources to growth businesses.