17 GOALS TO TRANSFORM OUR WORLDManagement Strategy

NOPOVERTY

Credit and Finance Business Strategy

ZEROHUNGER

Growth Model through“Settlement”and“Finance”
Actively employ specialized humanresources from outside the GroupThe environment surrounding the Credit andFinance Business is rapidly changing. Opportunities
to be able to expand business depending on responseto them, such as government-led promotion ofcashless transactions, expansion of new settlement
options including QR code and advanced technologies,
are being created. The Group’s strengths include store
assets that are located in major cities throughout
Japan, good customer assets of more than six million
people and hospitality developed over a long period ofhistory. The Credit and Finance Business has a highaffinity for retail including department stores that havedirect customer touch points and it is expected tofurther create synergy in the Group. In view of such
The Groupʼs strengths are the source of competitive advantage

Large urban
storesthat attract
many customers

More than 6 million

goodcustomers

38

The Grouptransaction
volume ofDECENT WORK AND
ECONOMIC GROWTH

CLIMATEACTIONLIFE
BELOW WATERQUALITYEDUCATIONGENDER
EQUALITY

CLEAN WATER
AND SANITATION

INDUSTRY, INNOVATION
AND INFRASTRUCTURE

REDUCEDINEQUALITIESSUSTAINABLE CITIESAND COMMUNITIESRESPONSIBLE
CONSUMPTION
AND PRODUCTIONPEACE, JUSTICEAND STRONG
INSTITUTIONSPARTNERSHIPFOR THE GOALSLIFEON LAND“Sustainable Development Goals”
agreed by the world community
to be achieved by 2030

background, we positioned the Credit and FinanceBusiness as a growth business that can become thecore of the Group and we have decided to invest
management resources to strengthen the business.

Rebuild strategy for dramatic growth
To this end, a person who is knowledgeable about
settlement and finance was invited from outside theGroup to become the President of“JFR Card,”which
operates the Credit and Finance Business, in March2018 and the company was analyzed and surveyedfrom an objective perspective using skills andexperience. Based on the results of such analysis andsurvey, we will rebuild strategy for the Credit andFinance Business to revitalize existing business andexpand business fields.
5 pillars of strategic actions

1

Improvementof revenue ofexisting
business

2

Strengtheningof cardproducts

3

Launch ofmerchantacquiring
services

4

Review ofsystem
platform

5

Human resource development /building of organization

more than ¥1 trillion

Brand strength /customer
service skills

AFFORDABLE AND
CLEAN ENERGYGOOD HEALTH
AND WELL-BEING

Management Strategy

Firstly, we tried to improve business operations. In

In the“finance”field, using the strength of the Groupthe original scheme of our card business, most of card
operations were outsourced and we scrutinized andthat has many customer touch points through storesand offering not only credit cards but various settlement

overhauled existing operations through the eyes of anoptions, we aim to provide optimal finance services forexpert who is knowledgeable about card business. As

customers, including “insurance” and “financing,”

a result, it was revealed that there were someinefficient processes, which we could not find withinbased on settlement data. We will strive to expand thefinance business considering active investment tothe company before. We already started improvement

make up for a lack of resources and alliance.

of business operations, which is possible in the shortterm, and it begins to show a certain effect as cost
reduction due to streamlining of operations.

Use of strengths of ability to attract manycustomers and transaction volume

whose stage is different from the past. For this reason,
we reformed the organization and created positions
for systems and employed human resources who haveexpertise to achieve these organizational missions

Oﬀering ofreceipt options

responsible for marketing and positions responsible

Settlementof strategy, in order to develop into growth business

CreditOﬀering ofpayment options

It is essential to develop human resources and build
an organization, which will support the implementation

Debit

Point

Prepaid

Merchant acquiring businessfrom outside the Group. Now we are in a phase ofbearing upfront costs for future growth such as costs
for strengthening the organization. We will speed up
to build business foundations to respond to the rapidly

Timely provisionof ﬁnance services

changing environment surrounding the Credit andFinancing

Finance Business.
Based on them, we rebuilt growth strategy for theservices with“settlement”at the core.
In the“settlement”field, we will prepare for issuing
new cards with new loyalty program. Concerning theInsurance

Finance

Credit and Finance Business to provide “finance”

new program, we are finalizing it with Daimaru

Asset management
Investment management
ExchangeRemittanceMatsuzakaya Department Stores from a perspectiveof ease of use and advantages for customers and aim
to issue new cards in the next fiscal year. We will
expand operations as a settlement company byobtaining licenses from international card brands andhelp go cashless by introducing new settlement
technologies. Through these efforts, we will offer awide range of settlement options to increase thenumber of customers and expand settlement data.

What we aim about the Credit and Finance Businessis the integration of digital business and real businessthat provides value mainly at the Group’s physicalstores. We think the“model combining digital andreal”businesses is exactly growth strategy for theCredit and Finance Business, which is unique to theGroup.

Provide ﬁnance services with settlement at the core
Financing(revolving)

Financing

Insurance(loan)

Settlement

Remittance

Investment
management

Exchange

Assetmanagement

Integrated Report 201939