Nanto Bank : （Ｓ）Enhancing the Group’s Productivity (706kb)

S	Developing with Our Region
Cultivating a Healthy Corporate Culture with Participation of Diverse Human Resources

IT Strategy and Administrative Division	Kazunobu Nishikawa
Director and Managing Executive Officer

Enhancing the Group's Productivity

Basic Policy

Achieving sustainable Group management will require use of digital technology, organizational capabilities to respond flexibly to changes in the environment, and development and securing of human resources to support these efforts.

Digital technology can not only significantly reduce the burdens on operations that rely on manual work, experience, and intuition, but it can also provide us with the decision-making information we need to explore more appropriate solutions to our customers' challenges by combining and applying various types of information.

The Nanto Bank Group is simultaneously pursuing two initiatives in the digital technology arena: full integration of the Group's IT, including that used in its branch functions, operating procedures, and paperless operations; and maximization of convenience for customers through digitalization of customer services, as exemplified by cashless payments.

These efforts will reshape our cost structure to create a more muscular corporate constitution, producing a Group that can provide customers with value-added information and services, whether or not the transactions are conducted in person.

While the evolution of digital technology poses some threats, such as an increase in new entrants into banking from other industries, it also holds immense potential for the Group. We are committed to providing financial services that meet the diversifying needs of our customers, and to considering the full range of available options for satisfying customers and inspiring them to choose our services.

Responding to the SDGs

Improving productivity is not an issue for customers alone, but one that the Nanto Bank Group itself should take the initiative in addressing. That said, however, the Group continues to lag behind in digitalization of its operations.

Our plans to reduce the number of Group employees will require that we transform our operations by constructing systems that maximize results with limited resources.

We intend to implement concrete measures to enhance the efficiency and sophistication of our operations by adding digital technology, such as by introducing an AI-based credit management system, to replace the human resources they had previously relied upon.

Fiscal 2022 Action Plan
Current situation				Goals for achievement
	Fiscal 2022 Action Plan
and issues
	Effective deployment of management resources,
•Decreased	including strategic allocation of personnel,	Realizing an
number of	by improving operating efficiency through the	organization that
customers	application of digital technology, etc.	maximizes results
•Progress of	Application of	Review of	Upgrading of the Bank's	with limited
digitalization	resources
	information	branch functions	internal infrastructure

38 Nanto Report 2022, the integrated report of Nanto Bank

Strategies and

resources allocation

Main initiatives

Application of information (AI-based credit management)

Introduction of a FinCast system that applies AI to detect business conditions and identify deteriorating business conditions at an early stage and to create opportunities for dialogue with customers

		BANK
FinCast	Analysis	Approach	Customers
information on return	Support for
	prediction detection	early responses

Review of branch functions

Transformation of branch offices into consultation venues by systematizing and centralizing administrative work

Upgrading of the Bank's internal infrastructure

Creation of an environment that facilitates smooth communication with customers and efficient business operations (online consultation services, online witness confirmation of intent to guarantee, etc.)

Engagement of online conferencing and other activities via individual rental smart phones

	High counter		Low counter		Back office
		Teller ATM		Reception navigation		Centralization
Branch office
workload
50% reduction

Installed at	Installed at all branches	Trial introduction
75 branches	(Account opening, various notifications)	at 17 branches

Intranet computer

Smart phone

Customer liaison tablet

Reformation and transformation of branch office operations and image of the next-generation branch office

In our efforts to digitalize all our office operations, we are considering adopting the latest authentication infrastructure and digitization of all transaction vouchers. We will effect a transformation to next-generation branch offices that deploy leading-edge technologies to solve local issues, as exemplified by establishment of channels and AI to facilitate remote transactions by anyone from anywhere.

Past	Lobby	Branch ofce					Center
An environment with heavy administrative		Customer service counter				Back office
	High counter				Time-consuming
burdens on customers and staff
	Deposits and withdrawals				office work
•Customers	•Staff

Complicated	Office work centered
procedures	on paper forms
Long waiting times	Procedures involving cash,	Low counter
Account opening documents
	monetary instruments
	Terminal operation		Document circulation
Current	Lobby	Branch ofce	Center
Transformation to partial self-service procedures	Customer service counter	Back office

Quick counter*1	High counter
Approximately 40% reduction in high counter	Quick
counter
processing forms
*1 Partial self-service teller window with integrated ATM
With both customers and staff handling ATM procedures together,
payment and transfer slips are no longer necessary.	Low counter
Reception desk navigation*2	Reception
Up to 30% reduction in low counter reception time	desk navigation
Document circulation
*2 Customer convenience has been improved by eliminating the need to fill
in documents by hand and shortening processing times by changing
such processes as account opening and address change procedures
from paper to digital operation.

Next-generationLobby

Branch office value reform

Centralization of back ofce work

Elimination of branch office SBT terminals

through centralized consolidation

Use of surplus space

Reduction of office space from 70% to 30%

Use for such purposes as consulting and local community activities

Branch ofce

Center

	High counter
Low counter	Office
	Scanner
	Digital data

*SBT: The SBT (super banking terminal) is a device used by the branch office tellers and back office staff of financial institutions.

Nanto Report 2022, the integrated report of Nanto Bank 39