Value Creation by the Group’s Human Resources

Realizing a Convenient, Prosperous Society

Ensuring Greater Convenience
IT and other digital technologies have become indispensable for thesustainable growth of the Group as our role has changed dramaticallyfrom “supporting business” to “transforming companies and the way
they do business.”
To ensure an accurate grasp of customers’ increasingly diverseand sophisticated needs, the Group organizes and deploys a broad
range of information obtained through “Know Your Customer” activities
conducted under a robust security and information management systemwith the aim of improving the customer experience (CX), enhancing ourown operating efficiency, and increasing the sophistication of our sales
Director in charge, Digital Innovation Office, IT Strategy Department
activities.
Director and Managing Executive Officer Kouji Honda
We are currently developing a new banking application thatenables customers to conduct banking transactions “as if over the counter anytime, anywhere.” In the future, we will enhance ouroffering of non-financial functions to add convenience to various aspects of customers’ daily lives.
We will continue to make both “offensive” and “defensive” efforts to enhance our banking services to give customers newexperiences in a reliable, secure environment.

Basic Policy
With our customer interface undergoing dramatic change, as seen in the spread of digital technology and decline in the number ofcustomers visiting our branches, we are creating an environment that allows customers to access our Group companies seamlessly
regardless of time or location.

Fiscal 2023 Action Plan
External environment

Acceleration oftransition to digital
Diversification oflifestyles

Goal to beachieved

Fiscal 2023 Action Plan
Establishment of an environment in which customers can accessGroup members seamlessly, regardless of time or place, and asystem to raise the Group's productivity.
Improvement of sales efficiency
and visualization of activities

Sustainablegrowth ofregional
economyExpansion and improvement of noninterpersonal tools to create contacts
with customers for asset accumulation

Improvement of sales efficiency and visualization of activities
Improving Group productivity through the use of IT
We are creating an environment that facilitates efficientbusiness operation by deploying business applications
and seamless system integration, not only at branches orduring customer visits, but also away from the office, suchas when confirming plans for customer visits and routes andconducting voice input of daily activity logs on a smartphone.
We will also make use of digital technologies topromote the efficiency of such traditionally paper-based
procedures as property transfers to/from customers andproperty management in our branch offices, with the useof smartphones as a starting point, and concentrate ourresources on solving customer issues.

38 Nanto Report 2023, the integrated report of Nanto Bank

Improving productivity through the use of IT in marketing activities (Image of the envisioned future)
When visiting customers

Gaps in travel and visits

Establishment of a system that enables employees
to concentrate on customer services

Creates more time to address customers’ issues

More sophisticated and efficientteam-based visits
Reduction of clerical workat the reception counter
More efficient
property transfer
Sequential expansion of functions from FY2023

Stress-free work environmentMore efficient operations

Sequential expansion of functions from FY2023

In a branch office (before and after visits)
Enables more sophisticated preparation for solving customers’ issues
Under consideration for introduction in FY2024

About Nanto Bank

Our Shared Vision

Value Creation by theDeveloping Human
Governance Supporting Our Consolidated FinancialStatements
Resources for Value Creation Group’s Human Resources Proactive Human Resources

BusinessmodelStrategies
and resources
allocation

Outlook xpansion and improvement of non-interpersonal tools that enable interaction
Ewith asset-forming customers
Banking application development
In order to provide customers with a new experience in a secure environment, we are developing an application that enables themto conduct banking transactions “as if over the counter anytime, anywhere” in pursuit of maximum convenience.

Phase I Introduction planned during FY2023

Key functions

Provides applications with botha superior CX and high security• Account opening (eKYC)

Deposits and• Switch to ledger-free accounts
foreign exchange• Kotora remittance

Various loans

Etc.

• Loan balance inquiries• Card loan borrowing/repayment

Variousnotifications• Suspension/resumption ofcash card use• Change in cash card limit

Smartphone ATM• Cash card-free ATM
deposits/withdrawals

Security• Advanced authentication forstrict ID/password-free
identity verification

Etc.

Etc.

Assets undercustody• Investment trust,
NISA account opening• iDeCoEtc.

Phase II Under consideration for introduction after 2024

Expansion of non-financial functions... Reinforcement of customer contact points by implementing functions closely connected with customers’
daily lives and communities, and provision of services that are more in tune with today’s needs and lifestyles

Creating banking apps more customers would love to use
We are developing banking applications based on the concept of “providing superior CX” by offering frictionless transactions that resemble over-the-countertransactions, irrespective of the time or place.
We are designing applications to provide “simple, easy operability,” allowing convenient use by a wide range of customers andoffering “high security for safety and peace of mind” to protect their valuable assets.
We plan to start with the launch of applications permitting banking transactions only and then gradually expand their functionality toinclude non-financial services that are closely related to customers' future lives.
We will continue to draw on our ingenuity to develop new banking applications designed to revolutionize the way our customers
interact with the Bank that will eventually become the “face” of the Bank and a familiar communication channel customers will love.
Digital Innovation Office, IT Strategy Department
Section Chief Akihiro Okuda

Expanded Mortgage Loan Web Service functions
In December 2022, we introduced a new “Mortgage
Loan Web Service” employing digital technology to satisfy
diversifying customer needs by enabling customers
to complete the entire mortgage loan process, fromapplication to screening, online. Customers use it toapply for mortgage loans online from their smartphone or
PC anytime they want.
By seamlessly linking the Bank’s host systemwith IT4 Corporation’s front-end system and IBM
Japan’s digital service platform, the Bank has achieved
a paperless application process that reduces the timerequired for processing by approximately 70%, including
application acceptance, screening, and execution. Thishas significantly shortened the time it takes for customers
to complete the necessary procedures.

Mortgage Loan
Web Service

Web-based
reception desk

Contractor portal

Major functions

Application from anywhere,
24 hours a day, bysmartphone or PCA dedicated portal site tosupport the businessefficiency of homebuilders(already made available)

Electronic
contracting process

AI-OCR

Automatic execution

No need to fill out a contract
form, affix a personal seal orpurchase revenue stamps

A highly accurate scanningsystem that enables swifter
processing of paper-based
applications

Achieves reduced customer
waiting time through smooth,
operation-free execution

Functions to be added in FY2023
System linkage to the Web for paper applications• Further labor-saving and improved convenience of paperwork and execution
Linkage with banking applications• Improved convenience of application processes, loan payments, account opening, balance inquiries, etc.

Nanto Report 2023, the integrated report of Nanto Bank39