Materiality 1: Offering of safe and secure settlement infrastructure

Changes in the society and associated issues as seen by Seven Bank

In recent years, the financial environment in Japan has changed significantly, and even as various digital settlements enabled by technological innovations expanded, there has been rising concerns over increasingly crafty and sophisticated financial crimes and security. In addition, people feel anxious over the decline in the number of counters and ATMs of financial institutions as well as settlements (cash shortage) during frequently occurring natural disasters. It is important for Seven Bank to offer an infallible security system and play the role of social infrastructure that can be used with ease of mind even in emergencies such as during a natural disaster.

  • Receipt and provide of notification of suspicious transactions
    • Order 1: Number of reported cases is the number of cases for which notification was received by the National Public Safety Commission and the National Police Agency.
    • Note 2: Number of cases provided is the number of cases of information concerning the notification of suspicious transactions provided by the National Public Safety Commission and the National Police Agency to investigative agencies, etc.
    •  Source: Prepared based on the Annual Report on Prevention of Transfer of Criminal Proceeds (2018)

Changes in Seven Bank and its approach to the issue

Seven Bank will leverage the knowledge it has cultivated since its inception in various new settlement services and proactively adopt technology innovation to offer a secure and efficient settlement infrastructure. Moreover, it will develop a safe and secure financial platform conforming to the changes of time in cooperation with stakeholders led by financial institutions.

Contributions to SDGs

Seven Bank will work on this Materiality through the development of a safe and secure social platform by offering a settlement infrastructure and contribute to the achievement of Sustainable Development Goals (SDGs) 9, 11 and 16.

Seven Bank's Major Initiatives

Offering a User Environment Where Safety and Security Are Maximized

Stable operation of ATMs

For customers to be able to use our ATMs anytime, an optimal structure is in place to quickly address a breakdown or malfunction and restore normal ATM operation as soon as possible.

  • Normal Situations

    System Base Redundancy

    The relay system that forms the backbone of the network and ATM support centers and call centers that are our points of contact with customers have been set up in two locations in eastern and western Japan to prevent interruption of transactions due to a disaster or other reason. The relay system has been structured to maintain normal operations, without a moment of downtime.

    Monitoring Cash in ATMs

    In cooperation with a partner security firm, we monitor usage at every ATM and work to maintain the proper amount of cash in every ATM at all times. To prevent suspension of service due to running out of cash, the security firm sets the timing of cash refills and collections according to the usage pattern of each ATM, thus keeping the frequency of such work to a minimum.

    Security Measures

    Seven Bank and its partner financial institutions are connected by a network of dedicated lines. In addition, data is encrypted according to the type of transaction, with automatic detection of unauthorized access.

  • Emergencies

    Response to Breakdowns and Malfunctions

    We manage all ATMs and network systems in real time in cooperation with partner companies. Our system automatically sends out a signal upon the occurrence of a breakdown or malfunction or physical damage to the ATM, enabling a speedy and accurate response

    Measures to Address Blackouts

    To be able to complete a transaction uninterrupted even when a blackout occurs during a transaction, Seven Bank ATMs embed Uninterruptible Power Supply (UPS) batteries. Even after the ATM is suspended, the ATM user can still inquire using the interphone, and security functions are maintained for secure and safe ATM use even in an emergency.

    Business Continuity in a Disaster

    To continue operations even in the event of a largescale disaster or an accident, Seven Bank has prepared a business continuity plan (BCP). Various functions of Seven Bank have been duplicated to sustain operations even in the event that either of our operational bases—one in the Tokyo metropolitan area and the other one in Osaka—has shut down due to events such as a disaster, by operating the intact system in the other area.

Seven Bank’s System Network

  • Relay system: System to relay the data on ATM transactions with our business partners such as partner financial institutions and transmit/receive data that is necessary for the administration of ATM operations to external operational bases
  • Accounting system: System to provide account services of Seven Bank such as ordinary deposits and personal loan services
  • Integrated ATM network: System network to connect ATMs of financial institutions with different business models such as city and regional banks
  • Zengin system: Abbreviation of “Zenkoku Ginko (nationwide banks) data transmission system” to exchange data regarding transactions such as money transfers between domestic banks and conduct fund settlements. Almost all private financial institutions in Japan such as banks and Shinkin banks are part of this system.

ATM Functions That Anyone Can Use with Peace of Mind

Our aim is for Seven Bank ATMs to be capable of being used by anyone at any time, easily and with peace of mind.

Measures to protect privacy

Seven Bank ATMs are equipped with “rear-view mirrors” that allow users to see what is behind them, and the screens are coated with a “special side-view prevention film” that stops people standing nearby from seeing the displays when users input the PIN and monetary amount. In addition, the ATM notifies users if they forget to take their card when they start to walk away, in an effort to make transactions safe and give people peace of mind.

”Fourth-Generation ATMs” to Address Changes of the Times

New “fourth-generation ATMs” address changes in society and customer needs with new technologies like facial recognition and AI

We began installing fourth-generation ATMs in September 2019 to address changes of the times, including lifestyle changes, the use of smartphones, and the diversification of payment methods. With personal authentication using facial recognition and the capability of reading QR codes,* fourth-generation ATMs are opening a new world of possibilities for new services and styles of ATM use, as a multifunction platform that is not limited to conventional ATM transactions that mainly involve withdrawing and depositing cash. We are also aiming for greater operating efficiency by using AI for precisely forecasting demands for cash and predicting various types of parts breakdowns.

  1. * QR code is a registered trademark of DENSO WAVE INCORPORATED
  • Responding to Change

    ATMs chosen by customers
    Uniqueness and differentiation

    We offer an operating area that consolidates new functions in a subdisplay. Combinations of these functions provide various new services that address changes in society and customer needs, including cashless payment and lifestyle diversification.

  • Strengthening Fundamentals

    Providing a safe, secure settlement infrastructure
    Security and countermeasures to financial crime

    We have strengthened security in response to financial crime becoming more sophisticated and ingenious with advances in digitalization. We provide services that can be used safely and securely at any time.

    Even greater convenience
    Pursuing ease of use

    We provide an environment for comfortable use with a simple design featuring large letters and wide margins on a large display that is easy to read.

Measures to Prevent Financial Crime

Continuous, effective measures against increasingly ingenious financial crime are essential to maintaining a safe, secure settlement environment.
Because Seven Bank provides financial services through transactions carried out via ATMs and the Internet without face-to-face interaction, we are keenly aware of the importance of security and damage prevention and are taking various measures to ensure that customers can make transactions with peace of mind.

Cybersecurity Measures at ATMs

We are introducing features in our ATMs to prevent people from being able to see another person’s touch pad for inputting PINs and monetary amounts. When a customer makes a money transfer with one of our ATMs, an alert is shown on the screen or audio assistance is given to prevent fraudulent money transfers by reminding the user of potential crimes. In addition, our ATMs are equipped with devices that constantly operate to detect suspicious objects and irregular transactions, and to prevent the fraudulent capturing of card information (skimming). Moreover, to prevent financial crime from spreading, our ATMs are compatible with international-standard IC cards, and a system has been introduced to detect fraudulent ATM use.

Measures at Seven Bank Accounts

To prevent Seven Bank accounts from being used for crime, thorough legal checks are carried out when account openings are requested, to strengthen our measures against fraudulent accounts.
In addition, we take the measures shown below to address crimes targeting Internet transactions after accounts are opened.

For individual customers

  • We have introduced Smartphone Authentication*1 for Internet banking. A specialist division also conducts multilayered monitoring of transactions and accesses as we strive to prevent damage from crimes. For use of the “My Seven Bank” smartphone app, we have enhanced safety by introducing handset authentication*2 in addition to passcode authentication.

For corporate customers

  • We have strengthened our security measures by introducing tools including One-Time Password*3 and an approval procedure that requires more than one person, for customers’ greater peace of mind.
Flow of Money Transfer Using Smartphone Authentication

  1. *1 Smartphone Authentication: A method to verify that the customer doing an Internet transaction such as a “Money Transfer to a New Recipient” with a dedicated app on a smartphone is the rightful person. Use of this authentication app requires registration. A fraudulent money transfer can be prevented if a password is obtained by a third party.
  2. *2 Handset authentication: Advance registration of a smartphone to be used for logging in reduces the risk of fraudulent use by a third party
  3. *3 One-Time Password: A password that is effective only one time (a certain duration only) to reduce the risk of fraudulent use by a third party

Seven Bank recognizes that with changes in the external environment (increasingly sophisticated cybercrime) and changes in the internal environment (open and cloud-based systems, business diversification, etc.), cybersecurity is an increasingly important issue, and in April 2020 we established the Cyber Security Management Office in the Financial Crime Risk Strategy Planning and Prevention Division to strengthen cybersecurity measures across the Seven Bank Group.

Support for Financial Institutions' Measures to Counter Money Laundering

セブン銀行の100%子会社 バンク・ビジネスファクトリー

Measures are being sought daily to counter increasingly intricate types of financial crime. At Seven Bank, we are offering our expertise in preventing fraudulent accounts to Bank Business Factory Co., Ltd., which began undertaking outsourced operations for account transaction monitoring in 2018. This service uses transaction data provided by partner financial institutions and identifies and regularly reports on suspicious transactions. Financial crime countermeasures need to be constantly updated and enhanced, and meeting the needs of partner financial institutions in this area helps them provide safe and secure settlement service.

Disaster Support

Dispatch of Mobile ATM Vehicle

After the Great East Japan Earthquake in March 2011, we dispatched mobile ATM vehicles to regions where considerable time was required to resume ATM businesses.

From October 2015 to March 2016, we regularly dispatched mobile ATM vehicles to Katsurao Village, Fukushima Prefecture, which is designated as an evacuation zone due to the Fukushima Daiichi Nuclear Accident, to support the reconstruction of the region.

Collaboration with Partner Companies

Relations with Partner Financial Institutions

Since its founding, Seven Bank has provided ATM services that can be accessed “anytime, anywhere, by anyone, and with safety and security,” while providing various values to our partner financial institutions, etc. We have built strong relationships of trust by offering Seven Bank’s ATM network infrastructure, operations expertise and management know-how, by enhancing customer convenience and by helping reduce the operational and management burden of the ATMs of our partner financial institutions. We also take into consideration the challenges and needs of our partner financial institutions and continually evolve our unique added value to increase convenience by, among other means, supporting cards issued overseas by major international companies and offering various types of electronic money and new settlement services such as QR and bar-code settlement.
We also offer our expertise in preventing fraudulent accounts with our consolidated subsidiary Bank Business Factory Co., Ltd., thereby providing new support services as countermeasures to money laundering and back-office support on commission for financial institutions, striving to contribute to solving social issues in the finance industry as a whole.

Partner Companies: Relations with ATM Manufacturers

Seven Bank develops and manufactures its ATMs jointly with its manufacturing partners. To develop and manufacture our unique ATMs that are both simple and highly functional, we stand in our customers’ shoes and share yet-unmaterialized needs, following our commitment to achieve goals through repeated discussions with our partners from the conceptual stage.
Our ATMs are assembled in Japan by our partner companies, and Seven Bank’s officers and employees regularly pay unannounced observation visits to confirm security, operating efficiency, etc. In addition, sensors within ATMs carry out preventive maintenance at the first sign of a problem, and timely inspections are done as necessary, to stop outages from occurring. If ATM maintenance is required due to an unforeseen problem, we send a maintenance worker from our partner company’s affiliate to restore the ATM to service, thus minimizing downtime.

Partner Companies: Collaboration with Security Companies and Call Centers

Seven Bank’s ATMs operate, in principle, 24 hours a day, 365 days a year. Providing an environment that anyone can safely use requires collaboration with partner companies with highly specialized skills, from responding to ATM outages to maintaining mechanical security to securing transport.
Together with security companies, we monitor cash demand in line with usage patterns to forecast the appropriate amount of cash to have inside an ATM and efficiently replenish cash as needed, to keep the frequency and duration of stoppages to a minimum. We are also using AI to forecast cash demand even more precisely.
Our call centers also monitor our ATMs 24 hours a day, 365 days a year, and remotely recover out-of-service ATMs. If recovery of an ATM is not possible, the call center dispatches members of a security company and works with the partner company to quickly restore the ATM.
Through this collaboration with partner companies, Seven Bank’s ATMs are able to achieve a 99.98% operating rate.