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 fi rm, 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 fi nancial 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 are 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 participate in 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.

To Prevent Financial Crime

Measures to Prevent Financial Crime

We are introducing measures to prevent the increasingly diverse types of financial crime, protect customers’ valuable assets and ensure safe transactions. We have also established a specialist organization, CSIRT※1, to combat cyberattacks, which have become increasingly sophisticated and intricate in recent years.

Cyber Security Measures at ATMs

Our ATMs have a camera for recording situations, screens and a keypad designed to keep others from viewing the input. When customers make money transfers using our ATMs, an alert is shown on the screen or by voice to remind the ATM user of a potential crime to prevent fraudulent money transfers. Our ATMs have an embedded device to detect a suspicious object and prevent the fraudulent capturing of card information (skimming).
Moreover, to prevent financial crime from expanding, 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 abused for financial crimes, the Bank undertakes strict customer due diligence procedures and identifies persons who have been involved in crimes in the past when customers apply to open new accounts. After a new account is opened, the transaction status is monitored in real time by the Account Monitoring System. To cope with increasingly sophisticated crimes targeting Internet banking, the measures described below have been taken.

For individual customers

  • The Smartphone Authentication※2 has been adopted for Internet banking.
  • sA system is in place to detect if a customer’s personal computer is infected by malware※3.

For corporate customers

  • One-Time Password※4 has been adopted.

Account Monitoring System:

We analyze the pattern of an account that was used for suspicious transactions, such as a fraudulent money transfer, and check other accounts that show suspicious activity. In the event a suspicious transaction or account activity is detected, the transfer is temporarily suspended and the transfer is implemented after the authenticity of the transaction is verified with the initiating financial institution.

Money transfer to a Seven Bank account (scheme)

  1. ※1 CSIRT (Computer Security Incident Response Team): an organization that takes quick and appropriate measures in the event of computer security-related incidents.
  2. ※2 Smartphone Authentication: Method to verify the right user for Internet transactions such as a “Money Transfer to a New Recipient” using a dedicated app for a smartphone. The use of this authentication app requires a registration procedure.
  3. ※3 Malware: A general term referring to harmful software made for the purpose of accessing others’ computers in a fraudulent way to attack or cause an information leak.
  4. ※4 One-Time Password: Password that is effective only one time (a certain duration only) to reduce the risk of fraudulent use by a third party.

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

Toward Safe and efficient Transportation Security

Seven Bank works with its security services company to provide on-site support for ATMs, ranging from general breakdown response to cash replenishment and electronic security, so that ATMs can be used with peace of mind.

The Partner company analyzes the use of ATMs on a unit-by-unit basis to ensure that ATM services are not stopped due to out-of-cash, and set the timing of replenishment according to usage patterns. We minimize downtime due to the maintenance and inspection of ATMs and cash replenishments. In addition, the Security Center continuously monitors the system 24 hours a day, and responds quickly to sudden problems.

Supporting the Stable Operation of ATMs with a 24-Hour System

For the provision of high-quality services Cooperation with partner companies

In order for Seven Bank to continue to provide services that satisfy customers, it is also necessary for partner companies to realize high service quality.

Therefore, Seven Bank participates in a meeting of the security company to share information on case studies, initiatives to improve customer satisfaction.

In addition, we carry out role-playing to share information on how to deal with problems at ATMs. We also hold exchange meetings with personnel in charge of operation and maintenance to deepen understanding of customer satisfaction of Seven Bank.

Workshops with Partner Companies

Certificate of appreciation and reward system for partner companies

Seven Bank has established a letter of appreciation system for its business partners. This program is designed to give a certificate of appreciation twice a year to those who have made excellent achievements, thanking their partners for their daily efforts.

In addition, the ATM Call Center, where the operators of partner companies are active, has established a reward system since fiscal 2006. Every month, we select and commend excellent examples of case reports, opinions, and proposals from operators.

Letter of appreciation ceremony