Major Blow to Business Model

Our company

External environment

The spread of the Internet and smartphones has led to a digital shift in the purchasing channelsof customers, slowing down the growth model of the payment business centered on offline
marketing channels, which was a strength of Credit Saison.

Before Digital

After Digital

Offline-based consumption

Smartphone-based consumption

Growth model of the payment businessmaking the best use of face-to-face,
offline marketing channels

Number of new
cardmembers

Card transaction
volumeconfidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

The rise of competitors strong in digital area
has slowed down the growth model of our
payment business

Number of new
cardmembers

Card transaction
volume2

Digitization Credit Saison Has Been Working On
To respond to the digital shift, Credit Saison has implemented measures to reduce
development costs through in-house development, reduce business operations withthe use of software, and increase the number of online/app members.
Cost reduction rate
for in-housedevelopment projects

61.8%

0%

Rate of fraud
prevention

CX
EX

92.5%

81.4%

*Total of FY2021 to FY2022 (expected)*FY2019 to FY2021

Ratio of online
membership byenrollment year

The cumulative
number of app
downloads

75.8%

CX
EX

5.5 million
downloads

86.4%(payment business)

80.7%

87.6%

0 hours

CX
EX

12,000followers*FY2019 to FY2022
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

hours
CX
EX

67 sites in total

1 sitemillion downloads*FY2019 to FY2021

CX
EX

295,000
followers*FY2019 to FY2021

730,000
The number of sites
with digital counters

CX
EX

10.6

SNS followers

CX
EX*Total of FY2019 to FY2022 (expected)*FY2019 to FY2021*FY2019 to FY2022

Percentage of digitalchannels

Total working time
saved by software

CX
EX

Weekly active users of
Slack

178
users

CX
EX

3,199 users*FY2018 to FY2022

3

Growth of Each Business through Digital

As a Key Driver for accelerating the growth of each business, we will promote digitaltransformation that integrates reality and use data obtained through digitization
to transform customer and employee experience.
Core Concepts of Medium-Term Management Plan

Transform customer andemployee experience bypromoting digitaltransformation that
integrates reality

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Innovate existing values
and create new ones withall kinds of problems as
starting points

Take on the challenge offinancial inclusion throughfinancial services

4

CSDX VISION

Provide emotional experience to customers

Transform employee experience

Aiming to innovate and transformbusinesses by utilizing digital technologies,
and to be a leader in the digital age by
providing exciting experience that exceeds
expectations
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5

Basic Framework for CSDX Promotion
The basic framework of CSDX is to promote strategy to allocate digital humanresources and DX for employee experience (EX) and customer experience (CX).

Basic framework for CSDX promotion
EX

CX

Promote innovation using
digital technology

Promote bimodal strategy
in system development

Promote strategy to allocate
digital human resources

EX/CX

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

6

Promotion of Strategy to Allocate Digital Human
Resources
Expand the training system for and mid-career recruitment of human resources who promote digitaltransformation, enabling the deployment of digital human resources linked to the importance andpriority of management strategies

Japan

Finance business

Payment business

Data and digital technology

Overseas

Global businessCorporate culture

Networking

Deployment of digital human resources linked to the importance and priority of management strategies

Digital humanresources
1,000
employees
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Core digital humanresources
Business digital humanresources
Digital IT humanresources

Mid-career
recruitment
HRdevelopment

New graduate
recruitment

Company-widetraining

Internal transfer

Training for
those interested

7Promotion of Bimodal Strategy in System
Development
Promote a bimodal strategy that coordinates both the development of Mode 1, whichemphasizes stability and is appropriate for areas where failure is not tolerated, and thedevelopment of Mode 2, which emphasizes speedy response to changing times
Mode 1
TimingMode 2

Post facto

Advance

Emphasizes stability

Emphasizes speed

Development method

Waterfall

Agile

Application example

ERP,SCM

CRM,MAManaging division

Managed solely by IT divisions

Managed by various user divisions
Exploratory work

For who?

Predictable work
Samurai, who defends territory andcompensation to the death
Operators

Emphasis

Efficiency, ROI

Novelty, large returns

Characteristics

Target work
Metaphors

If compared to driving Safe driving that minimizes risks
Management

Scale
Strength

Ninja, who tries to find out what works
Innovators
Driving with an emphasis on speed

Top-down

Bottom-up

Large

Small

Leadership, ability to get things done

Mobility, flexibility

Partially excerpted from ZDNet “Aim of Corporate IT ‘Bimodal’ Brought by Digitalization of the Economy”
http://japan.zdnet.com/article/35075658/
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

8

Promotion of Innovation Using Digital Technology
By utilizing digital technology that matches the digital penetration rate of the business,transform customer and employee experience and create innovative business models toprovide exciting experience that exceeds society’s expectations
Innovation
Step 3.
CreatebusinessmodelsStep 2.
Transform
customer/
employeeexperience
Step 1.
Build theCSDX
platform

Digitization

Digitalization

Digitaltransformation
Globalbusiness

Payment
business
Financebusiness▪ Promote digital lending
business▪ Create new businesses anddouble-tracking▪ Create new businesses
combining real and digital▪ Digitize business processes▪ Build next-generation systems

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Digital9Five Basic Strategies
To achieve CSDX VISION, optimize the digital platforms and digital development
processes, and create new value and business collaboration by utilizing digitaltechnology and data
CX: Promote innovation using digital technology

Business creation

Business co-creation

Create customer experience
combining real and digital

Provide new value through cocreation

CX/EX: Promote strategy to allocate digital human resources

Digital human resources
Increase digital penetration through resource allocation

EX: Promote bimodal strategy in system development

Digital development
process
Optimize business processes

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Digital platforms
Strengthen cloud and data utilization
platforms

10

CSDX TARGET 2024
As CSDX TARGET 2024, we will achieve the following four quantitative/qualitative goals.

CSDX TARGET 2024
Increase in thenumber ofdigital humanresources to

1,000

Achieving 80%

Full digitization

cloud
migrationof businessprocesses

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Building the
Saison Data
Platform

11

Training of Digital Human Resources
Increase the number of digital human resources to 1,000 by FY2024 by developing
digital human resources through the expansion of training programs, the digital
certification program, etc. to accelerate the shift to a digital organization.

Increase the number of digital human resources to 1,000
FY2021

FY2022

FY2024

Digital humanresources

Digital humanresources

Digital humanresources

150 employees

260 employees(3.5% of total)(5.6% of total)

1,000
employees(20.0% of total)

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

*The ratio of digital human resources for FY2024 is calculated based on the number of employees in FY2020.

12

Expansion of Cloud Utilization Areas
We aim to migrate 80% of existing major systems to the cloud by FY2024 through cloudfirst development of new services and migration of existing systems, actively utilizing cloudservices such as Amazon Web Services (AWS).
Customers

Achieving 80% cloud migration of existing major systems
Future vision

Service area

Customer
contact
Receiving
applications fora credit card

Current
Content
distribution

Onlineservices formembers

Marketingautomation

Fraud
detection

Screening

New services
Collection

CreditSaison CDP

Pointmanagement

Data analysis

Internal
tools

Authorization

Core system

Emplo
yees
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Cloud utilization area
13

Full digitization of business processes
We aim for full digitization of business processes including various tasks andprocedures, by promoting paperless work, use of data linkage systems, use of AI that
automatically responds to queries, use of BI tools, etc.

Full digitization of business processes
Remote working environment• Improve remote working environment• Strengthen security risk measures

Digitization of activity data
• Visualize activity data with the use of BI tools*• Automate analysis with the use of data
analysis tools

Improvement of customer experiencethrough digital• Digitize contracts by adopting electronic contracts• Realize multi-channel customer response

Digitization of paper work
• Digitize reception and screening• Implement automation with the use of data
linkage systems

Digitization of customer experience
Enrollment

Contract Procedures Inquiry

Seek customer comfort
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Digitization of paper work
Screening

Decision

Settlement

Digitization of activity data
ReportAnalysis

Speed up decision-making and accelerate
improvement reforms*BI tools: Software that analyzes and visualizes a wide range of corporate data

Seek operational rationalization

14

Creation of the Saison Data Platform
Create a data platform that can flexibly respond to the needs of customers, partners andexternal companies, and reduce lead times for data utilization by using data analysis
tools, dashboards, etc.
Co-creation of promotional
opportunities

Co-creation of new shops

External companies
Ad delivery

Ad requests and orders

Problemsolving

Sales support
Data analysis
tools

Saison Data
Platform

Dashboards

Utilization of
tools

Shop data

Smartphone apps
Usage trends/preferences

Newly acquired tenants and theiremployees

Partners and group companies

Digital ad

Personalized offer

Customers
Creation of mutual customers
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Creation of preferential services
15

CSDX Promotion Structure
We’ve established a structure where the status of CSDX promotion is reported andexamined on a regular basis, mainly by management and CTO/CIO.
President

Management:

Vice
President

Announcement by
the executives about
CSDX promotion

Executives
CSDX Promotion
Meeting

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

CTO/CIO leadership withengineering background

Budgeting andorganization

HR development

IR

Public Relations
OfficeGlobal Business
Division

Customer Success
Division

Finance Division

Saison AMEX Division

Payment Business
Division

Credit Division

Processing Business
Division

Business divisions

CTO/
CIO

Strategic Human
Resources Dept.

Technology Center

Monthly cross-sectoral review
of CSDX projects

Corporate Planning
Dept.

Promoting department:

Directors

16

Transformation of the Business Portfolio in theMedium-Term Management Plan
New
businesses

Step 1

Step 2CreatebusinessmodelsGlobalbusiness
52.3 billion yen

Step 1

Step 2New businesses

Step 3

Digitalhuman
resources

CreatebusinessmodelsGlobal business

Financebusiness
Financebusiness

Payment
business

2021

Step 3

Digitalhuman
resources

Build theCSDX
platform

Transform
customer/e
mployeeexperience

Build theCSDX
platform

Build theCSDX
platform

Transform
customer/e
mployeeexperience

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Payment
business

20XX

Transform
customer/e
mployeeexperience

CreatebusinessmodelsDigital humanresources

17

Roadmap for CSDX VISIONCSDXVISION

Provide emotional experience to customers

Transform employee experience

Step 3. Create business models▪ Promotion of financial inclusion in Southeast Asia and other regions▪ Promotion of innovation using digital technology▪ Transformation of business portfolio▪ Building the Saison Data Platform

Step 2. Transform customer/employee experience▪ Development of business digital
human resources▪ Promotion of the digitaldevelopment process▪ Launch of a digital certification
program▪ Acceleration of digitization
through in-house development▪ Realization of 1,000 digital humanresources▪ Realization of fully digitized operations

Step 1. Build the CSDX platform▪ Establishment of a bimodalorganizational structure▪ Formation of a data analysis team

FY2019–confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

▪ Acceleration of cloud-first platform ▪ Achievement of 80% cloud▪ Expansion of infrastructure for data
migration
analysis visualization

FY2022–

FY202418

Initiatives in CSDX Strategy

Digital Human Resources

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20

CX/EX Digital Human Resources

Definition of Digital Human Resources inThree Levels▪ Digital human resources are defined in three levels as below according to theirknowledge and skills regarding digital technology and data.
▪ Promote the cultivation of digital human resources by expanding training programs
and reforming the organizational structure
Layer1

Human resources who possess deep knowledge
Core digital and experience regarding digital technology anddata utilization and lead the company-wide
humanresources digitization

Layer2Business
digitalhuman
resources

Human resources who not only possessbusiness knowledge and experience but
also reskill themselves on digitaltechnology and data utilization, andpromote company-wide digitization

Digital IT
humanresources

Human resources who
possess knowledge regarding
digital technology and datautilization and use suchknowledge in their work

Layer3

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

▪
▪
▪
▪

Engineers
Data scientists
Cybersecurity
Designers▪ Generalists + coretechnologies▪ Citizen developers▪ Citizen data scientists▪ Digital marketers▪ Domain experts▪ Work system experts▪ Digital certification program21

CX/EX Digital Human ResourcesCore Digital Human Resources▪ Core digital human resources are those who possess deep knowledge andexperience regarding digital technology and data utilization.
▪ They lead the company-wide digitization by software design and development aswell as promotion of data utilization.
Engineers

Data scientists

Promote designing anddevelopment of software andserver-building

Human resources who possess
deep knowledge and experience
regarding digital technology anddata utilization and lead thecompany-wide digitization

Cybersecurity

Support investigations into
and improvement of security
vulnerabilities

Core digital
Utilize algorithms and statistics tohumanpromote data utilization
resources

Engineering

Data science

Cybersecurity

Designconfidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Designers

Create designs that match brandimages and product concepts

22

CX/EX Digital Human Resources

Business Digital Human Resources▪ Business digital human resources are those who utilize their business knowledge
and promote application development and data utilization.
▪ They promote company-wide digitization through software development and datautilization in collaboration with core digital human resources.
Digital marketers(Reskilling)

Designers(Reskilling)

Engineers

Promote designing anddevelopment of softwareand server-building

Citizen developers(Reskilling)
Promote marketing using
websites and SNS

Create designs that match brandimages and product concepts

Business Digital Human
Resources
Human resources who possessbusiness knowledge and experienceand promote company-wide
digitization

Engineering

Data scientists

Utilize algorithms andstatistics to promote datautilization

Citizen data
scientists

Data science

Job experience and skills
Promote application
development using nocode tools, etc.
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Promote data utilization
with BI tools, etc.
23

CX/EX Digital Human Resources

Digital IT Human Resources▪ Digital IT human resources are those who possess knowledge regarding digitaltechnology and data.
▪ They learn digital technology knowledge and data utilization methods to use
in their own work.
Domain experts/ Work system experts/ Digital certification program

Learn the latest digital technology and data utilization
methods to promote digitization in their divisions

Digital IT Human Resources
Human resources who possess and use knowledge
regarding digital technology and data for better
efficiency in their job performance
Design thinking

Data utilization

Digital knowledge

Security

Job experience and skills

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

24

CX/EX Digital Human Resources

Training Engineers and Data Scientists▪
▪

Create our own training programs for engineers and data scientists with companies providing
training programs
Those who take three-month basic and advanced training programs will be assigned to a project togain work experience

Training programs for engineers and data scientists
Basic training
ApplicationengineerIn-housedevelopment
engineerData
analysis

Basic engineer
training(HTML, databases, etc.)

Basic systemdevelopmenttraining (Java)

Advanced training

Basic application
development training(Swift/Kotlin)

Advanced systemdevelopment training(Java)

Basic data scientist training(statistics knowledge, Python, databases)

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Work experience

To beassigned to a
project

Advanced data scientist
training (Python)25

CX/EX Digital Human Resources

Development of Digital Certification Program▪

Aim to develop a certification program that helps people learn ideas and knowledge on mindset
and behavior, such as design thinking and agile working, changes in the market environment,
and knowledge regarding data utilization and digital technology

Digital certification program
Creation of opportunities toutilize digital technology

Knowledge-building
Why

Background of DX

Understanding of themarket environment

What

How

Data and digital technology
used in DX

Utilization of data anddigital technology

Data utilization

The latest utilization
examplesUtilization of digital
tools

Digital technology
IT governance

MindsetTop management’s
messages

Design thinking“HRT” Principles

CSDX Strategy

Agile working

Fact-based

Formation of CSDX mindset
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

26

Cultivation of Digital Human Resources
through the Personnel System

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

27

CX/EX Digital Human Resources

Enhancement of Cultivation of Digital Human
Resources with Specialized Skills Courses▪
▪

Add job positions for digital human resources to specialized skills courses, which encourage
employees to contribute to the organization by utilizing expertise and skills
Recognize engineers, data scientists and designers as professionals for digital human resources

Specialized skills courses

Courses to enable employees to build a career and contribute tothe organization while developing expertiseEngineers

Data scientists

Designers

Other job
positions

Promote designing anddevelopment of softwareand server-building

Utilize algorithms andstatistics to promote datautilization

Create designs that matchbrand images and productconcepts

Lawyers, etc.

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

28

CX/EX Digital Human Resources

In-house Recruitment System▪ Recruit employees who want to be engineers or data scientists and transfer them to adigital division▪ Provide opportunities for such transferred employees to learn digital technology
through practical work experience, such as external training programs and OJT, so
they can lead digitization
Develop engineers and data scientists through in-house recruitment
systemBusiness divisions

In-house recruitment
systemPersonnel
announcement

Employees whowant to be
engineers

Business digital humanresources doing their job

Digital divisions

Development ofengineering skills

Selection
Employees whowant to be data
scientists

Internaltransfer

Meeting among members
Development of data
science skills

Candidates are selected and transferred through personnel
announcement to develop engineering and data science skills.

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29

CX/EX Digital Human Resources

SWITCH SAISON▪ Hold an in-house venture program “SWITCH SAISON” to solicit new ideas from
employees▪ Promote development of “intrepreneurs” (internal entrepreneurs) and speedy
commercialization of selected projects

SWITCH SAISON

14 projects
Commercialization of
selected projects

22 projects

75 projects
1,026 projects

Document screening

Pitch presentation
Give a presentation of the
project to divisional
managers

DemoDay
Give a presentation of the
project to management

Implement personnel
changes and simplify
internal decision-making

Give a presentation to management anddivisional managers

Solicit a wide range of ideas
from employees of alldivisions and all ages

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30

Data utilization

Aims of Data Utilization▪ Promote data linkage with other companies’ services and provide new value throughthe data ecosystem▪ Promote automation through data linkage systems and RPA to improve operational
efficiency
Provide new value by utilizing data

Improve operational efficiency through data linkage

Create emotional experience for customers based on data

Accelerate business automation and improve operational efficiency

Process
optimization

Innovation

Provision of
new value

Improvementof operational
efficiency

Promote data linkage
with other companies’
services

Automate and streamline
operations by promoting data
linkageDatalinkage

Current

Futureconfidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Current

Future32

CX. Business Co-creation

Retail Tenant Selection Support Service (Nowcast)▪ Analyze consumption behavior of customers visiting commercial facilities based on
credit card data
▪ Launch a service in collaboration with Nowcast Inc. that provides a ranking list of
tenants that meet the tastes of visitors
Service to support retail tenant selection

Facility A

Visitors toFacility A

Solve issues with thecommercial facility so that theirvisitors can enjoy shopping

Loyalcustomers

Problem-solving logicof this service
Brands where loyal
customers frequently
shop physically or online

Brands where
ordinary customers
frequently shop
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

InviteGenerate a list of
shops that match
the preferences ofvisitors to Facility A

Compare differences
Create a dashboard that shows
promising brands in order of visitor
preferences where Facility A
visitors are more likely to shop

33

CX. Business Co-creation

SAISON CARD Digital for becoz▪ Link credit card usage data with Doconomy AB and DATAFLUCT, Inc.
▪ Visualize CO2 emissions based on credit card usage for the first time as a Japanese credit
card company
Share credit card payment data among thethree companies

Visualize CO2 emissions based on
credit card usage

SAISON CARD Digital+ Original Data

Technology thatvisualizes CO2 emissions
Aland Index

Platform forenvironmental value
distribution

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

34

CX. Business Co-creation

Use of DataRobot, AI Cloud Platform▪ Use DataRobot, which is an AI cloud platform, to utilize data in screening and risk
management▪ Construct a high-precision model for screening standards and risk management
involving a large amount of data
Use of DataRobot, AI Cloud Platform
Purposebased
designAnalysisbased
designDatapreparation• Cleansing• Data processing

Model generation• Model construction andselection• Feature engineering

Implementationin actualbusiness
operations

Evaluation• Accuracy evaluation• Model interpretation• Implementation in actual
business operations• Accuracy monitoring

Realize construction of high-precision models in various fields
DataRobot
utilization areas

Screening

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Risk
management

Anti-fraudmeasures

Higherefficiency
in calls...
35

CX. Business Co-creation

Improvement of Fraud Detection Accuracy
through Data Analysis▪ Work on countermeasures against unauthorized use through data analysis every day toensure safe card use▪ Improve fraud detection accuracy by implementing AI-based scoring functions and new
fraud detection methods
Implement AI-based
scoring functions forfraud detection

Safe card use

OK

Fraud detection
systemDiscover fraud detection
methods based on data
analysisNG

Data scientists

Suspicious andunauthorized use
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36

EX. Digital Development Process

Promotion of the Use of Data Linkage Systems
and RPA▪ Adopt RPA systems for sensitive tasks such as browser screen operations▪ Promote the use of data linkage systems for tasks that require a large number ofprocesses, such as linkage between systems

Streamline operations with data linkage systems and RPA
Cooperative processing between systems

Data linkage systems
RPA
Automate manual tasks
Specialties: browser and other screen operations
Features: detailed processing

confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Back-end

Front-end

Manual PC operations

Automate the linkage between systems
Specialties: API/ data integration
Features: fast processing

37

Digital Platforms

EX. Digital Platforms

Status of Cloud Utilization
Until 2019, our cloud migration was focused on systems close to the customers, such as
content distribution. Now, we are promoting cloud utilization in areas close to the coresystem, such as data analysis environment, screening and credit.
Systems fully or partiallymigrated to the cloudCustomer
contact
Online services
for members
Authorization

Core system

Online services
for members

Content
distribution

Authorization

Screening
Fraud
detection

Customer contact

Content
distribution

Marketingautomation

CreditReceiving
applications for acredit card

Collection

Screening
Fraud
detection

CreditReceiving
applications for acredit card

Core system
Saison CDP

Pointmanagement

Internal
tools

Data analysis

AWS utilization

2019
confidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

Marketingautomation

Collection
Pointmanagement

Saison CDP

Internal
tools

Data analysis

AWS utilization

2022
39

EX. Digital Platforms

Development of Cloud-based Infrastructure
for Data Analysis▪
▪

Build new cloud-based infrastructure for data analysis to enable rapid linkage with customer
information and external data
Make full use of BI tools such as Tableau and Python/R for data-driven management andmarketing
Data warehouse

Data mart

Initiatives in visualization and analysis

ActionRealize data-driven management

Infrastructure
for data
analysis

Submitted
information
Screening
results

Visualize KPIs

Visualization

Teradata
Vantage
Cloud

Visualize the amount of workand human resources
Visualize business performance ofaffiliated facilities

Develop data-driven marketing

Attribute
information
Usage
information

External
data

AnalysisCreate LTV

Establish measures against
unauthorized use

Improve operational efficiency
through data utilization

Develop data utilization tools
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40

EX. Digital Platforms

Budgets for IT and Digital Investments▪ Manage IT and digital investments and plan investment budgets across divisions▪ Secure investment budgets that can be flexibly allocated to new businesses, service
improvements, etc.

Budgets for IT and digital
investments
Investments
in newbusinesses
andservices

50%
Systemoperation(formaintenanceand upgrade)

Other
12%

New
businesses
8%

Legal
compliance
8%
Contracted
businesses
10%

New services
15%

Ratio ofinvestments innew businesses
and services

Service
improvements
20%

Credit/fraud
5%
Improvementof operational
efficiency
22%50%
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41

Digital Development Process

EX. Digital Development Process

Acceleration of Cooperative In-house
Development▪ Accelerate cooperative in-house development, in which the digital divisions andbusiness divisions work together for flexible system development while
examining systems that will help solve business problems

Development in which creators and thosewishing for the creation are fully integrated(Digital divisions)

Cooperative inhouse development(Business divisions)

Digital divisions

Business
divisions

Flexible development+

Reduction ofdevelopment costs

Upgrade of existing systems/ operational issues of each division/ utilizationof digital technologies such as RPA/ etc.

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43

EX. Digital Development Process

In-House Development Example (1): Knowledge System▪ A knowledge system has been developed in-house which enables highly accurate searches over the
20,000-page-long call center manuals.
▪ Functions that improve knowledge accuracy will be continually added to the developed knowledge
system in order to improve customer service quality.
[EX issue] Unable to solve an issue while talking[EX issue] Confusing manuals are not revisedwith a customer over the phone

Search manuals
while talking
with a customer
over the phone

Search manuals while
talking with a customer
over the phone

Improve overall
self-resolution
skills(Function implementation
through cooperative inhouse development)

Selfresolving
cycle
Share information
with a team easily(Function implementation
through cooperative inhouse development)

Knowledge system(Function implementation
through cooperative in-housedevelopment)

Review feedback
on a regular basis

Knowledge accuracy and improvement speed arecontinuously enhanced.

Self-resolution skills are continuously enhanced at
the organizational level.

Communicators use theknowledge system.

(Function implementation
through cooperative inhouse development)

Knowledge
improvement
cycle
Revise manuals
based onworkers’ opinions

Add a bookmark tofrequently used manuals

Provide feedbackon the manuals[Working hour reduction effect] -Manuals are revised
in a timely manner.

80,000 hours
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44

EX. Digital Development Process

Cooperative In-house Development Case (2):In-house Development of the Internal API Base System
Establish a structure to promote flexible development through in-house development of the internal
API base system, where the load on the core system and optimization of the function
arrangement of peripheral systems are examined with business divisions

In-house development

Reduce the loadon the coresystemReduce the load on the core system byimproving login and logout functions

Cloud

Strengthen
cooperation
betweenperipheral
systems

Optimize the function arrangement of peripheral
systems based on utilization of the internal API
base system

Improve thedevelopment
speed

Improve the development speed throughcloud collaboration and in-housedevelopment

Reducecosts

Reduce running and development costs
through cloud migration and in-housedevelopment

Internal API
base system

Scalability▪

Flexibility

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45

EX. Digital Development Process

Improvement and Creation of Service Functions
through In-house Agile Development▪

▪

Realize in-house development and upgrade of smartphone apps through in-house agile
development by app engineers
Change interfaces and designs for faster implementation of new features and services

Realize in-house development and upgrade of smartphone apps for
improvement of UI/UX and faster development

Card services

In-house development andupgrade of smartphone apps

Applicationengineer
Preferential
services

Agiledevelopment•••

Change interfaces and designs
Provide customer-friendly functions andservices
Improve operation speed through app
redesign

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Preferential
services

DesignTest Development

New services•••

Ensure faster implementation of new features and services
Realize seamless integration with apps
Adopt developers’ ideas into app functions46

EX. Digital Development
Process

Flexible Changes to the Development Process▪

▪

Create an in-house development system combining cooperative and agile features, which makes it
possible to select the development process that best suits the nature of the development
Choose hybrid development with vendor partners when system development speed needs to be
improved, etc.

Digital Development Process
Flexibly change the development process according to the nature of the development

Mode 1

Bimodal in-housedevelopment

Cooperative
development

Promote development ofsystems that help
employees solve
problems throughdiscussion with businessdivisions

EX

Agile
development

CX

Promote rapid
development of systems
with business divisions
that improve customer
experience

Hybrid development withvendor partners

Share the issues

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Development by
vendor partners
Improve the systemdevelopment speed
Ensure stable maintenance andoperation

Mode 2

Share the issues

47

Promotion of Innovation Using Digital Technology
Global Business
By utilizing digital technology that matches the digital penetration rate of thebusiness, transform customer and employee experience and create innovative
business models to provide an exciting experience that exceeds society’s
expectations
Innovation
Step 3.
CreatebusinessmodelsDigitization

Step 2.
Transform
customer/em
ployeeexperience

Digitalization

Digitaltransformation
Globalbusiness• Promote digital lending
business• Create new businesses anddouble-tracking

Step 1.
Build theCSDX
platform

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Digital48

Achieving Financial Inclusion(Fin)Tech-led INCLUSION and INNOVATION(Fin)Tech
Inclusion

Innovation

Lending business

Investment business

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49

CX. Business Creation

Expansion of Lending Business Using API (India)▪ Develop a loan management system independently as a common platform for digital
lending▪ Collect loan data from fintech companies to use for our direct marketing

Independently develop a common platform for digital lending using API
Person in
need of funds

Fintech companies

Loan

Loan

API

Loan
Independent
development

Kisetsu Saison Finance
Meeting scene

Financial
institutions

KisetsuSaison
Finance

Kisetsu Saison FinanceEngineers

Providing a common platform/
using collected data

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50

CX. Business Creation

Expansion of Lending Business Using Digital Data
(Indonesia)
Build a mobile app platform for credit and risk assessment using digital data toprovide the digital lending business to the underserved

Create an AI-led model to assess risks based on more than 5,000 data
items

Insufficient infrastructure
information such as personalcredit standing

Collecting digital data such as
operation logs at the time of
granting credits

Infrastructure information

Creation and operation of an
AI model utilizing digital data

AI modelOver
5,000 data
items

Personalauthentication
Credit scoring
Review ofclassification
Repayment
optimization

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51

CX. Business Co-creation

Investment in Companies Utilizing Latest Digital
Technologies (Saison Capital)
Invest in early seed companies in Southeast and South Asia that utilize digitaltechnologies, such as fintech and embedded finance, to address national
challenges in the financial sector
Create business synergies by networking with companies withadvanced technologies

Major investment targets of Saison Capital

Embedded
FintechCryptoWalletWealthmanagement

Lending

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Hold a Product Manager Breakfast meeting ona regular basis

52

CX/EX Digital Human Resources

Maximized Use of Global Business Resources
Lending business
Provide financial services to the underserved•••

Investment business

Capital&Insight

Exchange information on the construction of digital
native services, etc.
Discuss system architecture configuration
Develop human resources and network with othercompanies through ongoing exchange programs

Earn returns on investment/ gain insight into global
business expansion•••

Exchange information on Web3 and otheradvanced technologies
Interact with global startup companies
Examine new business models

Session on Web3 with Saison Capital

Meeting with Kisetsu Saison Finance

Innovation(Fin)Tech

Inclusionconfidential Copyright © CREDIT SAISON Co., Ltd. All Rights Reserved.

53

Promotion of Innovation Using Digital Technology
Payment Business
By utilizing digital technology that matches the digital penetration rate of thebusiness, transform customer and employee experience and create innovative
business models to provide exciting experience that exceeds society’s
expectations
Innovation
Step 3.
CreatebusinessmodelsDigitization

Step 2.
Transform
customer/e
mployeeexperience
Step 1.
Build theCSDX
platform
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Digitalization

Digitaltransformation

Payment
business• Create new businesses
combining real and digital

Digital54

CX. Business Creation

Enhancing Customer Communication through Digital▪ Provide content that gives customers a sense of excitement and achievement
even before they become a cardmember on the smartphone app▪ Able to appeal to customers in a prompt manner by sending personalized
notifications based on their card usage, etc.
< Before enrollment > Gold meter< After enrollment > Usage amount meter[Provide a senseof excitement andachievement][Keep cardmembers
motivated to use
their cards]

Give membershipbenefits based on
usage

Increase benefits
based on usage

Automate work

Implement new
functions

Create digitalcontent

Engineers

Engineers

Designers Engineers

Data analysis

Improve UI/UX

Data
scientists

Designers Engineers

Engineers— Prompt customer communication through digital shift
From creation of digital content and system development to data analysis, we do it all in-house.
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55

CX. Business Creation

SAISON CARD Digital▪ Accelerate alliance formation with companies in different industries and data
marketing with the SAISON CARD Digital service, which offers functions to complete
card issuance and payment on smartphones

PaymentfunctionDatamarketing

Applications can be completed
in as little as 5 minutes via smartphone

Alliance with over 200 companies *As of the end of November 2022
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56

CX. Business Creation

Interactive AI Operator▪ Introduce a new interactive AI operator to improve customer experience in calling▪ Routine queries are answered by AI, and complex queries are handled by humanoperators

Interactive AI Operator
AI auto answer
Create response to a query throughspeech synthesis
AI operator

Quick queries are promptly
answered by AI

CustomerSpeak the queryon the phone

Inquiry call

Questions requiring complex
procedures are answered bya human operator

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AI autosort

Choose unmanned ormanned response
according to the inquiry
content

Human operator

Operator’s response57

CX. Business Co-creation

Provision of Digital Concierge Service▪ Develop Japan’s first 24-hour manned live chat concierge service in collaboration
with the TEN Group▪ Provide recommendations that suit each customer’s lifestyle based on their interests andrequests

Improve service convenience and provide optimal
recommendations at the same time
Submit information about
interests to Saison Premium
Concierge

Provide information on special
offers by restaurants that suits thecustomer’s lifestyle

Saison Premium Concierge• Concierge service available via chat
• Switchable from chat support to phone
support• Provide optimal recommendations
based on requests

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58

Promotion of Innovation Using Digital Technology
Finance Business
By utilizing digital technology that matches the digital penetration rate of thebusiness, transform customer and employee experience and create innovative
business models to provide exciting experience that exceeds society’s
expectations
Innovation
Step 3.
CreatebusinessmodelsStep 2.
Transform
customer/em
ployeeexperience
Step 1.
Build theCSDX
platform

Digitization

Digitalization

Digitaltransformation

Financebusiness• Digitize business processes• Build next-generation
systems

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Digital59

EX. Digital Development Process

Review of Customer Leads Using Smartphone App▪ Add a function to submit a rent guarantee application to the credit card smartphone app,which shows the screening results immediately on the app▪ When the application for rent guarantee is completed, the Saison Card will be
automatically registered as the payment method for rent, etc.

Make complicated procedures such as application and payment
registration easier on smartphones

Application for rent
guarantee

Rent guarantee
screening

Application for card
payment

Procedures can be completed easily
with the smartphone app•••

Application for rent guarantee can be submitted on
the app
The screening results will be shown immediately
on the app
Rent will be automatically paid by card

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60

EX. Digital Development Process

Digitization of Lease Contracts▪ Digitize paper-based procedures for lease contracts, such as documents,
telephone calls and written agreements, to make these procedures simpler, faster,and more efficient
Conventional wayof concluding alease contract(paper-based)

Advance application

Customer visits andconclusion of businessnegotiations

Contract entry andmailing

Goods delivery

Digitize all screening processes

Online advanceapplication

Online interview

Online formal
application

Goods delivery

Digitized way ofconcluding alease contract• Simpler entry form
• No need for phone calls• No need for inquiry
about the balance
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• No need for visits• Time saving• No need for collection of
applications• Reduction of mailing costs• Visualization of screening progress61

EX. Digital Development Process

Digitization of Mortgage Screening▪ Digitize paper-based mortgage screening procedures, such as documents, telephone
calls and written agreements, to make these procedures simpler, faster, and more
efficient
Conventional wayof applying for amortgage(paper-based)

Application

Confirmation ofsubmitted information

Screening/decision

Confirmation of theresults

Notification of theresults

1–2
businessdays

Digitize all screening processes

Saison’s
digitized wayof applying fora mortgage— E.g.
Preliminary
review

Onlineapplication• Digitization

Confirmation ofsubmitted
information• Digitization• Saving time inconfirmation

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Confirmation of theAutomated
results
screening/decision

Notification of
the results
30
minutes
at theearliest• Automation• Saving time inscreening• Digitization• Saving time inconfirmation

62