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The 13th Medium Term Management PlanBest Bank 2020

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Initiatives for FinTech using API- T&I Innovation Center Activity -April 2018
The 13th Medium Term Management Plan Best Bank 2020

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Chiba Bank’s digital banking strategies

The 13th Medium Term Management PlanBest Bank 2020

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In response to the "digitalization" of society as a whole,
we are aiming to make the shift to "digital banking" by the target date of 2020
 Reforming the attitudes ofexecutives and employees Enhancing digital skills
 Encouraging bank employees
to pro-actively use digital tools
 Promoting work style reforms
2017.11

Set up theWorkplace Revolution
Development Office in theCorporate Planning Division

Digitalizing“bank staffskills”

Digitalizing“businessoperations”

 Evidence-based trials in foreignexchange operations using the“Watson” computer system
 Automate business processes using
IT (deposits, lending, loans) RPA trials OTC and in-store efficiency
improvements
2016.9Masago Branch (as the trial branch)

Digitalizing“services”

2015.11TSUBASA Alliance(Financial Systems Advanced Alliance)

T&I Innovation Center Co., Ltd.
(A joint investment company set up by the
6 regional banks and IBM Japan in July 2016)2016.72017.32016.10

 Developing a simple
feature for balance,deposit and withdrawal
inquiries using banks’ API Provision of Chiba BankApp
Evidence-based trial on the distributionof coupons using the Chiba Bank App
The 13th Medium Term Management Plan Best Bank 2020

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T&I Innovation Center - company profile

The 13th Medium Term Management PlanBest Bank 2020

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Company Profile
Company Name

T&I Innovation Center Co., Ltd.

Representative

Chairman–representative director, Masao MorimotoLocation

15F, Muromachi Chibagin Mitsui Building,
1-5-5 Muromachi, Nihonbashi, Chuo-ku, Tokyo

Capital Stock¥100Mil.

Shareholder
Breakdown

Chiba Bank 40%; Daishi Bank 10%; Chugoku Bank 10%;
Iyo Bank 10%; Toho Bank 10%; North Pacific Bank 10%; IBM Japan 10%

Established

July 1, 2016

Business Profile

FinTech studies and research; planning and development of financial services that use
FinTechHistory
October 2015

Launch of TSUBASA Financial Systems Advanced Alliance(Participating banks: Chiba Bank; Daishi Bank; Chugoku Bank)

March 2016

Additional 3 banks join TSUBASA Financial Systems Advanced Alliance(Additional participating banks: Chiba Bank; Daishi Bank; Chugoku Bank; Iyo Bank; Toho Bank; North
Pacific Bank)

July 2016

Joint investment company established by the 6 banks in the TSUBASA Alliance and IBM JapanThe 13th Medium Term Management Plan Best Bank 2020Final Stage - 3 years of value co-creation

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T&I Innovation Center - details of operations
Studies and research on FinTech

The 13th Medium Term Management PlanBest Bank 2020

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Planning/development and sales operations
for financial services that use FinTech
Develop newproducts/services(Increase top-line)

Improve businessefficiencies(Reduce costs)

Realize bank’s needs

TSUBASA Alliance

TSUBASA Alliance
Provide financial services

Studies/researches

OutsourceDevelopPlanSystemvendors

FinTechventuresDomesticandother banks’
movements

AIMobile

Content Partners

SaleBig DataNewServicesSystemDevelopmentPartners

The 13th Medium Term Management Plan Best Bank 2020

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Goal of using open API

The 13th Medium Term Management PlanBest Bank 2020

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Promoting open innovation through open API support○ With the rapid technological progress of FinTech, etc., we are working to discover added value bycooperating with other companies and services in different sectors in order to improve convenience andsatisfaction for our customers.
○ If banks are seeking to "collaborate with external companies to link their own bank’s services" or "collaborate
on bank holding data from an external company," then in addition to ensuring security, an interface will beneeded to link with the accounting systems.

Through the construction of the TSUBASA FinTech Platform, we aim to create anecosystem (API ecosystem) that enables valuable information links among various
business operators and is not limited to the financial sector.

Financial institutions using
the TSUBASA FinTech Platform

APIAPIAPI

API

Manufacturers/Serviceoperators etc.
APIAPIAPI

FinTech companies
IT companies

APIAPI

API

API

API

Government/local governmentetc.
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Construction of the “TSUBASA FinTech Platform”
to support open API - published in May 2017 -The 13th Medium Term Management PlanBest Bank 2020

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Construction of an API common platform with high degree of freedom for systems○ By constructing an API common platform, we are not only aiming to respond to the obligation to make efforts as per therevisions to the Banking Act, but also to diversify services through connections with external companies, in addition to which
we are hoping to speed up developments within the banks and cut costs.
○ In addition, with this common platform we are aiming to develop a platform that will be used by a wide range of financial
institutions - not just the banks that are members of the TSUBASA Alliance.

Apps
External Operators(FinTech firms, etc.)

EC Apps

CustomersGovernment/NewServices
Chiba Bank and each of the other
TSUBASA banks

BankingLoan/investment
products
Reservations forvisits/prior input

Account opening
API

Inquiry API
Bank deposit
transfer/moneytransfer API
Purchase/borrowing
API
Store information
API

Compartmentalize banking services

Household accountbooks/ Cloud accounts

TSUBASA
Alliance banks

TSUBASA FinTechPlatform

AP
I

Financial institutions outside
the TSUBASA banks

New
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An overall illustration of the TSUBASA FinTech Platform:
in it's completed form

The 13th Medium Term Management PlanBest Bank 2020

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Services for customers
Services for banks
TargetAccess channels

Service content groups

RetailOpen API

TSUBASA FinTech Platform
External API platforms

Service content platform

Mobile portal

Banking

Authentication/authorization apps

Biometric authentication
Links with different
sectors

OA

External back office services

API management

Externally linked services
Goal based

Mail/Push/SNS notifications

PFM

Data analysis/
conversion

Robot advisor

APIAPIAIAPIManagedproducts/insuranceAPIOpen data

API

Marketing data

API

Business apps

Data capture

Local government
services

・・・・・

DWH

・・・・・
Data storage

Credit Guarantee
Associations

CRM

Transaction details

Authentication

・・・・・

External EC sites

Internal API

API

Reservations for visits

Corporate
PortalLending support
Product/Service apps

Asset management
support
Mobile paymentsCore systems

New service platforms

Open API platform

Web bank bookCorporations

Bank systems

New service platforms

・・・・・
Data capture・・・・・
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Initial use scenario ① (links with PFM)
The 13th Medium Term Management Plan

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Illustration of API Flows

Service content groups

Open API platform

New service
platform

Externally linkedservices

External API platform

New service platform

Open API platform

Transaction details

Bank systems
Internal API
Balance inquiries

Balance inquiries

Statements

Statements

Best Bank 2020

Launch: April 23, 2018

PFM Outline/Screen ImagePFM is a service that can centrally manage several types ofaccount information such as that on banking, securities, andcredit cards, etc. (the PFM operators mentioned above also offer
household bank book services). The individual banks, and the key
Japanese PFM operators Money Forward, Zaim and Moneytree arescheduled to have API linked one after the other.

Core systems
Ordinary Deposits

Time deposits・・・Aims and effects of links with PFM

1. To improve users’ security
 Users will be able to safely use PFM apps
without having to keep IB passwords, etc. withPFM operators.
2. Improve user-friendlinessUsers will be able to fully manage their bankaccounts on PFM apps, as API connections also
allow us to provide information on loanbalances, etc.
3. IB cost savings IB transaction/PAYG fees are expected to fall
through the use of scraping.

The 13th Medium Term Management Plan Best Bank 2020

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Initial use scenario ② (links with finbee)
The 13th Medium Term Management Plan

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Illustration of API Flows

Service content groups

Open API platform

New service
platform

Externally linkedservices

External API platform

New service platform

Open API platform

Products/new service
apps

Balance inquiries

Transfers
Accountcancellation

finbee is a service that allows you to save while having fun, as
you save up your spare cash, over a number of stages in linewith your lifestyle; with this service you set your saving
objectives (such as saving for a car or to go on a trip) along withthe target amount for your savings. The service is scheduled for
API connection in conjunction with the TSUBASA banks

Internal API
Balance inquiries

Transfers

Goal basedapps
Account management
functions, etc.

・・・・・

finbee Outline/Screen ImageBank systems

Core systems

Statements

Statements

Best Bank 2020

Launch: April 23, 2018

Account opening
Account
cancellation

Ordinary Deposits
finbee account・・・・・・・・

finbee's Key Functions

1. “Automatic Savings” based on rules, such as savings
made over a number of stages
2. “Manual Savings” where it is easy to make savings
when you want
3. Recommendations on banking products and services

Aims and effects of links with finbee

1. Enhance our approach to the social strata involved in
asset formation
 Increase points of contact with customers and improve
our scope with the younger generation
2. Achieve sophisticated marketing thanks to the acquisitionof user data
 We will be able to make timely recommendations using
user data such as saving (consumption) objectives andhow much saving has been achieved, etc.
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Next-use scenario

The 13th Medium Term Management PlanBest Bank 2020

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A total of 74 ideas for next-use scenarios have been submitted by individual banks ahead of theconvocation of the API usage scenario examination board. Of these, 24 high-priority initiatives arescheduled for detailed examination.
The main next-use scenarios are listed in the table below.
Project Name

OutlineExpected effects

Additions to PFM connections

Addition API connections - Zaim and Moneytree

Improvements in customer convenience andenhanced approach to the social stratum
involved in asset formation

Development of digital bank books

Replacement for paper bank books

Improve customer convenience and save on
the cost of issuing bank books

Individual IB replacement

Existing IB replacement ＋α

Save on costs by abolishing individual IB
and create new customer experiences

Links with external operators forsettlements, etc.

Link with settlement companies and major EC sites
through the development of API for Web account transfers
and instant account transfers.

Save on costs, collect data and increase
earnings opportunities

Links with accounting software

Links with accounting operators such as freee, Money
Forward, Yayoi, TKC, etc.

Improve customer convenience, improve
operational efficiency, expand earnings
opportunities, enhance approach to microenterprises and SMEs

Develop API for banks’ in-houseadministrative procedures

Switch from "paper application + data keyed-in on sales
branch system" to "digital application + API
links/processing"
Example) Account opening, various notifications, purchaseof assets under custody, loan application, platformproducts, etc.

Improved efficiency of business operations,promotion of cross-sales

Addition of biometric authentication
function

Introduction of biometric authentication as additionalverification to handle the latest API (for settlements andtransfers to individual accounts)

Provide new means of authentication forsettlement business and abolish bankbooks/signature seals (digitalize IDverification).

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Illustration of the reconstruction of financial channels

The 13th Medium Term Management PlanBest Bank 2020

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We aim to promote the development of omni-channels by utilizing the TSUBASA FinTech Platform to reconstruct
Internet channels, while also using API to reform existing channels.
Bank systems

Internet environment
API
Service content groups

Core systems① Construct new channels through the Internet

Balanceinquiries

Regional eco-system app

Roll out new,unmanned channels
outside bank stores

Eco-system apps
with close affinities
to shopping locations

API② Convert other companies’ channels into banking channels
Other companies’ EC sites
Provide banking
services inlocations wherepeople are looking
shop

PFM/robot advisors
Seamlessly link banking
services in verifying
household costs andoffering investment
consultations

API

Domestic exchange/foreignexchange

Common platform

Kiosks outside storesStatements

Current loans, commercial
bills, notes receivable,
security lending

Mutual funds

・・・・・

Transfers

Lending support
Ratings/selfassessment

BankTransfer

Collective approval
・・・・・

Account
opening➂ Develop Omni-channel initiatives (For all channels provided on Intra/dedicatedline + Internet）
TV contact
ATM・・・・・
Client liaison
Sales branchtablets
tablets
A
Using API we can build a uniform
customer support process for all
channels, from the marketing
process up to the administrative
process, for mutual collaboration

Ordinary/TimeDeposits

CRM
Customer datamanagement

Reservations
for visits

Project management
Segment/
recommended products

PI・・・・・・・・・・
DWH/OAThe 13th Medium Term Management Plan Best Bank 2020

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Launch of TSUBASA FinTech Platform (press release)

The 13th Medium Term Management PlanBest Bank 2020

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End of file【Matters to note】
This document was prepared based on the available information at the time ofpreparation, and include uncertainties. The information regarding companies other thanthe Chiba Bank was quoted from public information, and the accuracy is not guaranteed.