Banking and Credit
Information as of March 31, 2022.
Banking
Business
Real estate investment loans, corporate loans, consumer finance, and trust business
Assets (Share of total) | ¥2,496.4 billion (21%) |
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Profits (Share of total) | ¥28.2 billion (5%) |
Overview
Decades of Experience in Real Estate Investment Loans
Since joining ORIX Group in 1998, ORIX Bank has not done business like conventional banks. We do not have a branch network or ATMs, and we do not handle account settlement functions. Instead, we emphasize Internet transactions to reduce operating expenses and earn customer support with attractive interest rates on deposits. We have also expanded our business by focusing on real estate investment loans to differentiate ourselves. In these ways, we demonstrate our strengths in specialized markets. In recent years, we have been developing new products and services that leverage trust banking functions to address the asset management and succession needs of our customers.
Strengths
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Large share, strong risk management capabilities,and customer-oriented operations in the real estate investment loan market
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High profitability from low-cost operations
Challenges
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Improving ROA through strategic asset deployment
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Deepening relationships by optimizing customer contact points using digital technology
Opportunities
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Increasing needs for products and services that help resolve social issues
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Proposal and provision of products that use trust mechanisms to address customer needs
Risks
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Real estate market downturn due to the declining population in Japan
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Lower return on capital due to protracted low interest rate environment
ORIX Bank’s Business Model
Leadership
- Yuichi Nishigori
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Representative Director and President, ORIX Bank Corporation
Credit
Business
Consumer finance, guarantees of unsecured loans handled by other financial institutions, and housing loans (Flat 35)
Assets (Share of total) | ¥190.7 billion (2%) |
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Profits (Share of total) | ¥13.3 billion (3%) |
Overview
ORIX Group’s First Retail Business, Launched in 1979
ORIX Credit operates a loan business, a credit guarantee business, and a mortgage banking business. The loan business primarily provides unsecured loans to individual customers. The ORIX VIP Loan Card, which was launched in 1987, established a firm position and has evolved into ORIX MONEY. Based on the credit expertise ORIX Credit has acquired in the loan business, the credit guarantee business guarantees unsecured loans mainly handled by financial institutions. The mortgage banking business, launched in 2017, provides housing loans with emphasis on the Flat 35 product.
Strengths
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Brand strength in consumer finance
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Screening capabilities built over many years
Challenges
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Scaling back loan receivables in the loan business
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Expanding market share in the mortgage banking business
Opportunities
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Rebound in consumer sentiment damaged by COVID-19
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Increased opportunities to attract customers by collaborating with business partners
Risks
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Worsening economic environment (increase in non-performing loans)
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Intensifying competition in the consumer loan market due to entrants from other industries such as fintech
ORIX Credit’s Business Model
Leadership
- Yasushi Okada
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President, ORIX Credit Corporation