The Chiba Bank website[IR Library]

DX / HR Strategy

April 10, 2023

Table of Contents

DX Strategy
Chibagin DX Strategy
Chibagin DX [3.0]
Personalization Strategy
Regional Ecosystem Strategy
Chibagin App
Corporate Portal
BaaS / Metaverse
Local Retailers / Advertising
Operational Efficiency
DX Personnel Development

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

HR Strategy
3456789101112

Basic Human Resources Philosophy
Human Resources Development Policy
Human Resources Strategy
Expand Investments in Human Capital
Human Resources Development
Unified Group Management / HR Portfolio

1415161718-2021111

DX Strategy

22

Chibagin DX Strategy
Creating maximum customer value through DX strategy

20172020

20232026

Chibagin DX [1.0]Digital Banking Strategy

Chibagin DX [2.0]Chibagin DX [3.0]Improved CX and productivity

The optimal customer experience◼ Operation of TSUBASA
FinTech joint platform◼ Development of banking andbanknote apps that utilize theFT joint platform◼ Establish moonshot targets◼ Promotion of app, portal, datausage, paper/seal-less◼ Implement DX personnel
development system◼ Deliver proposals personalizedto customers◼ Develop ecosystem that
promotes regional engagement

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

33Chibagin DX [3.0]
Evolution of the customer-focused business model

Creating the optimalcustomer experience
Evolution of the customer-focusedbusiness model

Retail Customer Needs

Regional Ecosystem Strategy

Personalization Strategy

Evolution of Financial Operations
App
Corporate portal

Develop digital
infrastructure toconnect to customers

Creation of Non-financial Operations

Platform
PaperlessSeal-less

Develop infrastructure formore efficient banking
operations

Corporate Customer Needs

BaaS
Newtechnology

Support operations throughplatforms and new technology

Regionalsuppliers
ChibagnMarketDigital support for needs

ADAdvertising

Digital support for sales

Digital marketing to improve strategic outcomes

Accelerate strategy through human resources development
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

44

Personalization Strategy (One-to-One Marketing)Utilize data to make proposals that that address each customers’ issues in order to build a fanbase
End-of-life

Proposals that stand upstream ofcommercial distribution
Collect data from awide range of sources
SNSApp・Improve customer engagement
・Collect even more data

Raising children
House/car purchase

Corp. Portal
Marriage/children

ATM

Employee・Payroll deposits

Client liaison
Student・Open account・Debit card

・Credit card

・Life insurance
・Assetmanagement

・Residential loan
・Auto-loan
・Non-life
insurance

・School loan
・Insurance
review

Retirement
・Retirement
package・Assetmanagement
review・Testamentary
trusts・In-vivo gifts

・Card loan

・Utility payment

Further enhancement of proposal lineup
through non-financial services
Deliver life plan proposals to each customer
through their optimal channels

Anticipate customer needs andlife plans through data analysisDigitalRemoteHouseCar

BridalTravelIn-person
Chibagn Market

Elicit customer needs

Green energy

NursingEnd-of-life

Desirable products and services
Examine household budget and life plan
Financial literacy / asset management
information

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55

Regional Ecosystem Strategy
Connect local customers and businesses to build an economic cycle

Regional Ecosystem

Cashless payments
platform

Local residents
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Chibagn Market

Advertising

Local businesses
66Chibagin App
Developing an app that can solve any problem
Solve any problem
through a single channel

Expand functionality

Increase customer contact points

Familiar financial services via the app

Personalization

Digitalize branch transactions

Transaction/asset visualization, proposals tailored to customers

Barcode payments

Payments/transfers

Balance/transaction statements

Timed deposits, cancelations, account openings

Asset/contract information listing Household accounting review/LP simulation
Materials/service recommendations

Advertising broadcast

Notifications, eKYC, ongoing customer management Online account openings/transfers

Improved UI/UX

Fulfillment of financial services
Convenient and safe services
Loan repayment schedule

In-app loans

Trust inquiry

Trust account openings

Early repayment of residential loans

Auto-transfer service

Fund wrap/securities account balance Foreign currency deposits/insurance

Connect to life
Collaboration with other services

Comfortable smartphone experience
Simple operation, exciting design
Solid line: actual results

Dotted line: future goal
Customization

Number of app registrations/penetration rate

17.8%

Seamless authentication connection with other channels

50.0%

App penetration rate*(Thousand)Intuitive design

Communication

24.8%
1,500

10.6%

Consulting anytime, anywhere
Smooth communication/coordination with in-person transactions

Google Pay/Apple Pay

Unified local tax QR

API collaboration

Collaboration with local governments,
other industries, My Number system305
3/2021

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713

514
3/2022

3/2023*Number of Chibagin app registrations ÷
number of individual active customers

Appregistrations

Branch appointments

Chat/online consulting, etc.

3/2026(plan)

77

Corporate Portal
Portal site that is functional and easy-to-use for all customers
・Portal site that is functional and easy-to-use for all customers
・Implement functions that allow for administrative streamlining as an online branch(corporate transaction consulting)

Try the app

1Complete transactions through theportal without needing to visit a branch

Deliver bank services

２

Understand services
Obtain the information you need,when you need it

３

Provide solutions

Aim to be a familiar bankonline and in-person

Consult/apply

Solid line: actual results

Proper solutions for your company’s issues

Dotted line: future goal

In-person transactions

Concierge

Deposits

Information delivery

Complete transaction management online

Chibagin manual
Account balance/transaction statements Transaction trends (graph)

Information dispatch
Compare account info

Advanced operations
・Improve existing customer relationships
・Strengthen consulting capability

Portal penetration rate*

Financing
Borrowing reference

Repayment schedule

Account borrowing/repayment receipt

Digitalization of documents

FOREX
Smooth collaboration with Web-EB

52.9%

Seminar information

CO2 emissions measurement

41.9%(Thousand)

27.1%

In-person transactions
Virtual transactions

8.4%

New services
Digital contact points
Improve collaboration with ext. services
Online financing

Personalizedrecommendations

Notifications, etc.

60.0

・Maintain/increase transactions with net
depositors and small accounts
・Acquire new customer segments

17.4

Balance certificate issuanceIntroduce to all customers

170.0%

Display accounts of other banks

Group solutions showcase

Notification item change

Number of portal registrations/penetration rate

Utilize contact points

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Marketing

Improve operational productivity
Transaction channels suitable for customers

26.3

34.8

Number ofcorporate portal
registrations*2

5.0
9/2021 3/2022 9/2022 3/2023*1 *Number of corporate portal registrations ÷
number of individual active customers*2 Going forward, this result will now exclude accounts that have nohistory of logging in (updated retroactively)

3/2026(plan)

88

BaaS / Metaverse
Active use of new technology
BaaS

Metaverse
Accumulate know-how throughmanagement of events for job
candidates and local governments

Business operator customers

Begin consideringcommercialization with business
partners

Business operators

Business
operators

Cashlessplatform
Provide payment services to reduce cashhandling operations and streamline
administrative operations

Loans
Offer auto and card loans••••••Realtors
RetailersOccupational field
Universities
Regional hospitals
Local gov.

Past events

etc.

Provide financial and other functions
AppTSUBASA
pointsCashless

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Regionaladvertising

etc.

August 2022

Event for job candidates

Oct., Nov. 2022

Event for local governments

November 2022

New-grad recruitment event

December 2022

Event for Twitter followers

December 2022

Event for child-raising generation99

Local Retailers / Advertising
Enhance non-financial operations
Chibagin MarketAdvertising“Trigger regional revitalization” within ChibaSTEP 1
LocalProduction

Creation/cultivation of
new products/services

Ongoingpurchase

Attracting consumers within and outside theregion to local businesses

Branding

Local consumers

Local businesses

Bank channelAD

Establishment of new business model that stands
upstream of commercial distribution
Uncover hidden needs
through datautilization/personalization

STEP 2

Chibagn Market

LifeEvents

・Ad proposals• Cashless• Franchises• Corporate portal users

Realtors

House purchaseconsulting service

Chibagin Leasing• Borrowers• Local governments

・Advertising
management
supportAd agencies

Chibagn Market

Support consumption activity of new lifestyles and“Connect to life”

STEP ３

LivingAdvertising consulting support for business issues
related to customer attraction and name recognition

••
•
••

App
E-mailSignage
ATMs
LINE (Beacon)
Partners

BroadcastNon-local
consumers• Commercial
facilities• Digital ads

Ad mediumUse bank and other company channels to increase
opportunities to broadcast highly-reliable ads

IssuesBroadcast ads(Major areas)
Consulting
Health/nursing

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Education

Food retailers

1010Operational Efficiency
Achieve 300,000 hour reduction in working hours through ongoing operational reform initiatives
Support shift towards virtualization
while maintaining in-person channels
Make improvements to the overall system where many interactions require in-person
manpower and administrative processes differ between in-person and virtual

Reduced working hours(Results since 4/2020)(10 thousandhours)

73

Employee reorganization

Achieved 3-year plan
(Goal: 400,000 thousand hours)

43
23

Admin

Current

Reception

Current target

Inperson

Virtual30

9FY2020 FY2021 FY2022

Administration

Administration, etc.
4/2020~3/2023 results

Planning,
management, etc.
4/2023~3/2026

Approx. 360

Approx. 370

Sales branch approx. 280
Head Office approx. 80

Sales branch approx. 200
Head Office approx. 100
Group approx. 70

FY2025Administration(plan)

Proposal system
Reform 1: Expand virtual channels

Ongoing operational reform using the proposal system

・Implement chat tool for customers
・Further expand app/portal functions
・Cloud-based operational software

Reform 2: Lightweight branches

FutureReception

・Centralize operations at Head Office・Introduce remote tellers
・Enhance approval centers(Number of proposals)

Management

VirtualInperson

Reform 3: Efficient Head Office
operations

Admin

・Further promote paperless operations
・Centralized operations RPA・Unify administrative processes

Administration

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Proposalrequests

Sales branches/
Head Office

Sales branches/
Head Office420
3/20223,000

966

3/20233/2026(plan)

Improvement
HeadOffice

Proposal contents (example)⚫ Card loan cancellations through E-operations⚫ Digitalization of each authorization/directorywhen employees transfer departments

1111

DX Personnel Development
Accelerate DX by spreading DX personnel out to all branches, including sales branches
DX certification system/training plan

DX Specialist
training course(3/2026 plan)

DX Specialists

Specialist candidates are
selected from Core Personnel
and given order-made training

Progress
23％
As of 3/2023

DXSpecialists

7

External(mid-career)(3 mid-career hires)

Original plan

Personnel with highexpertise

Post-review

2030
Progress
40％

DX CorePersonnel

As of 3/202360
Original plan

Post-review

100150

Achieve baseline
number of contracts
・ICT consulting
・Cashless franchises
・Advertising

DX Base Personnel

Progress73％

Achievebaseline
score

Head OfficeSalesDX Core
branch DX
PersonnelCorePersonnel
Personnel
with a certain level of knowledge

Experience at DX related divisions

DX trainees/job postings

who focus on promoting DXDX score
Experience

Results

Knowledge

As of 3/2023

1,470

Motivation

Achievebaselinescore

DX CorePersonnel
training course
Acquire necessary DX
knowledge and skills
through on-demand learning,training, qualificationacquisition, etc.

Chibagin Academy

DX Base Personnel
Original plan

Post-review

1,000

2,000

Personnel with a certain level of DX literacy*Total number of employees: 3,965 (as of 3/2023)

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1212HR Strategy

1313

Basic Human Resources Philosophy
Aiming for sustainable development of the Bank Group, starting with human resources development“Human capital”, the Chibagin Group’s most important management resource, is indispensable for the sustainable growth of the Group.
In order to achieve our Purpose “To create a local community better suited to bringing each person’s hope to life,
We have established a “Human Resources Development Policy” as part of our philosophy regarding the importance of human capital.
In accordance with this policy, we will strive to proactively invest in the growth of our human resources, enhance the capabilities of each

employee, and implement initiatives designed to lead to the sustainable growth of the local community as well as the Bank Group.

Expand human resources development
investments
Contribute to company profits

Sustainable development of the local community
Sustainable growth of the Bank Group

StartingpointHR
Investment

HRgrowth

SustainablegrowthContributetocustomers

Human Resources
Development Policy“Become someone who keeps
fighting for the customer”

Provide societal value

A virtuous cycle leading to HR growth, contribution to customers, and sustainable growth for the local community as well as the Bank Group

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1414

Human Resources Development Policy“Become someone whokeeps fighting for the customer”
For the sake of customers, the region, friends, family, and oneself

Think things throughCopyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Utilize your own
strengths

Gain more
supporters

1515

Human Resources Strategy
Building an organization that creates new social value supported by “2 HR strategies”

Human Resources Development Policy: “Become someone who keeps fighting for the customer”

Human Resources Strategy

Creation of an “Organization with highpersonnel engagement”

Development of a “Chiba Bank Group
where people grow”
ImportantStrategies① Career development➁ Job satisfaction③ Diverse organization④ Unified Groupmanagement⑤ Human Resources
portfolio

Goals
Improve personal growth,
job satisfaction, and treatmentof employees

Sustainable growth forthe local community

Provide societal value

Bring customers’
hopes to life
Customers

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Diverse-range of experts

Bring employees’hopes to life
Employees

1616

Expand Investments in Human Capital (post-Mid-term plan structure)
Expand investment total and number of trainees (investment targets)
Number of trainees

Human capital investment total

414(Million yen)

219

242

Current Mid-term
Plan target(4/2020~3/2023)(4/2023~3/2026)

Research costs/
qualification
incentives, etc.

+170 million yen

173

Previous Mid-term
Plan result

148

＋132

280

System expenses
Research institute

Investment
total peremployee

FY2020

FY2021

FY2022

FY202544,000 yen

57,000 yen

65,000 yen

112,000 yen

Major new investments
・Strengthen management/supervisory training
・Strengthen DX personnel training
・Purchase Chibagin Academy training materials
・Support for self-development
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Corporate sales

50

Retail sales

50

DX personnel

60

Head Office personnel

90

Corporate solutions, Credit Unit,Market, Planning, etc.

Management team

30
1717

Human Resources Development (career step support)
Provide opportunities for training, challenges, and practice to help employees to become
who they want to be in the next three years while strongly supporting their career steps

Current analysis

Next 3 years

Following 3 years(4/2023/4~3/2026)(4/2026~3/2029)

Narrow down

Concrete image of who they want to be in 3 years

Training, challenges, practiceTake concrete actions for the next 3 years

Support ①

Training

Transparent and active“Information disclosure”◼ Easy-to-understand information:
Salary, promotion system,
obtaining qualifications◼ Disclose survey results
Engagement score, Bank topics
I want to be a
corporate professional

I want external
experience

Support ②
Become a“corporate sales pro”✓✓✓

Financial skills
Corporate trainee
Corporate professional
accreditation

I’m not good atfinancial analysis

Establish “Chibagin Academy”

I don’t have experience
with syndicated loans

Practice

Challenges

Support ④

Support ③
Expand “trainee” scope◼ Develop corporate/retail◼ View HR meetings as
professionals
development support meetings◼ Develop management◼ Assign highly career-motivatedcandidates
employees to their desired areas

Skills/experiences
so farCopyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

◎ Acquired financial skills◎ Corporate trainee△ Final step towards
corporate professional
accreditation
💡 Interest in M&A◼ Expert “training program”◼ 4000 video materials“Reassignment” using expertise
I want professional
qualifications

Look back / repeat

New skills/
experiences
Skills/experiences
so far1818

Human Resources Development (training support “Chibagin Academy”)
Establishment of “Chibagin Academy”, which offers a personalized training curriculum

Whenever, wherever

Personalized training curriculum

Learning at any time

Recommended learning based on job responsibilities/title

Personalization

During work hours

Privately

My syllabus

Robust materials

Digital badges/rankings

Enhanced line-up of job and self-development materials

Lasting proof of learning accomplishments

As of 4/2023: approx. 800 titles (approx. 4,000 videos)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

1919

Human Resources Development (career support “Specialist Development”)
Improve development of “specialists, DX personnel, and management personnel”
Increase human resources that will
drive our growth strategy
ManagementPersonnel

50 corporate and retail sales trainees
90 Head Office Specialist trainees

Specialists

Specialists
Sales branches
Develop specialist consulting proposals① Professional accreditation system➁ Corporate/retail trainee system

Development support forprofessional accreditation

Practical training/learning at the
Head Office/Group companies◼
◼

Chibagin Academy
Practical training

Head Office◼

◼

30 employees sent to outside trainings

Improveddevelopment

Increase human resources that canprovide practical value tocustomers◼
◼

◼

Dispatch to university lectures totrain our sales force

Increase human resources that will
accelerate our DX strategy
DXPersonnel◼

DX personnel
DX Specialists

Management personnel
Management candidates◼

DX Specialist training
systemDX Core Personnel

60 DX trainees

DX Core Personnel
training course
DX Trainees

Dispatch to management executivetrainings (adult university, cross-industrialexchange, etc.)

Supervisors◼
◼

Half-year coaching program
Evaluator training for supervisors

etc.

Develop specialist solutions proposals

Dispatch trainees to other companies or the Head Office for 1-2 years(in their specialized areas)

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DX Base Personnel
2020Unified Group Management / HR Portfolio
Building a human resources portfolio that follows our operational strategy
Group HR portfolio

Unified Group management

Unified Group hiring of
new graduate/mid-career candidates
UnifiedGrouphiring

Separate recruitment

2,330Bank Group

Active personnel exchange between
Group companies as a “career step”
Grouppersonnelexchange

Approx. 4,220

Approx. 4,220

Bank recruitment

Groupcompanies

Bank(Employees)

Number of employees dispatched
to Group companies (planned)(Employees)◼ Increased # of dispatched employees◼ Increase number of middle age/young
employees

2,240

Sales
branches-90

DigitalHead Office+60

Shift human resources toprovide societal value
Administrative

1,020
Efficiency

281

Conversion of HR portfolio

1,080

Reduced~-10%

Reorg.
~+10%

SolutionsGroupcompanies-10109

Managers820

81086Leaders

5090

HRdevelopment

414186Staff

3/20233/2026+40

FY2022

FY2025

208
126+73*Excluding part-time workers and employees on maternity leave

Implementation initiatives

Joint implementation of job-specific training
Group HRdevelopment

Separate training

Joint training for shared development

Fundamental skills, career development, management, etc.

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Employeereassignment

Careerrecruitment

Specialist/DX
personnel
development
2121