Management Policy, Management Environment, and Issues to be Addressed,etc.

Corporate Principles and Management Policy can be found on the following links.

Basic Management Policy

Seven Bank is working to offer safe, accurate, and speedy banking services deeply embedded in customers’ daily lives as their “wallets.”We aim to achieve this by creating a network of ATMs accessible 24 hours a day, 365 days a year, utilizing the 20,000-plus retail locations of Seven & i Holdings and its operating companies (the “Group”) led by Seven-Eleven convenience stores.

The Bank operates under an ethos of coexistence and co-prosperity by encouraging other financial institutions to make use of its easily accessible ATMs, thereby enhancing customer services and improving business efficiency.

Further, by proactively offering financial services sought by customers of the Group, we are working to attract a wider range of customers to the Group stores more often, and we will continue to pursue synergies to enhance the Group profitability.

Charter of Ethics

Seven Bank recognizes that "a bank is highly public in nature and have significant responsibilities to contribute to the economy and society." It is also fully aware of the importance of complying with laws and regulations and acting in accordance with economic and social ethics. We pledge to make constant efforts to achieve this, and we hereby establish a Charter of Ethics to demonstrate our resolve to overcome.

This Charter of Ethics serves as the basis for Seven Bank's business decisions as an ethical code of conduct to be observed as a company.

Be fully aware of the public nature and social responsibilities of a bank.

Be fully aware of the public nature of a bank, and contribute to the stable development of the economy and society at domestic and abroad by devoting ourselves to sound management based on management's own responsibility and fulfilling its social responsibilities.

Provide highly convenient, customerfocused services, matched to current needs.

We will always act with sincerity from the standpoint of customers. We will also pursue higher convenience and provide high-quality financial services that meet the needs of the times.

Act with integrity and fairness.

We shall observe laws and regulations and the spirit thereof, and always act in good faith and fairness so as not to violate social norms. We will firmly oppose antisocial forces that threaten the order and security of civil society.

Communicate with society.

Contribute to the development of society through the appropriate exercise of a bank's intrinsic functions, and act with awareness of being a good corporate citizen or a member of the international community. Furthermore, we will endeavor to ensure that our corporate activities are in line with the common sense and expectations of society through close communication with society, including active and fair disclosure of management information.

Have respect for humanity.

We value comfort and spiritual affluence, respect people, provide employees with opportunities for self-realization, and create a free-and open mind-set corporate culture.

In order to comply with the Charter of Ethics and its spirit, it is important that the top management of the company take the initiative in setting a example, and that the top management demonstrate strong leadership so that all employees can understand its significance and put it into practice.

Our employees must comply with the Charter of Ethics and its spirit as well as act as a guideline, and we must fulfill our mission to contribute to the development of the economy and social by continuing to provide high-quality financial services that meet the needs of our customers, thereby striving to establish and maintain the unwavering trust of society.

Management Environment and Issues to Be Addressed

Management Issues

The business environment surrounding the Bank’s group is changing dramatically, and the speed of the change is increasing. Much more so than before, management will need to be flexible in quickly incorporating the fruits of technological innovation, while maintaining a high sensitivity to changes in social structures and the diversification of customer needs.

In Japan, following the “Point Reward Project for Consumers using Cashless Payment” that started in connection with the consumption tax hike in October 2019, the digitization of account settlements and the increase in cashless transactions are ramping up. Given such trends, the value that customers seek in ATMs as financial contact points close to their ever-changing daily lives is also shifting radically. Moreover, with increasingly diversifying lifestyles and a sense of value, the implementation of a new regulation related to foreign workers, etc., new consumption and labor markets are emerging, leading to further expansion of the needs of “nearby and more convenient” financial services.
On the other hand, today’s diverse and serious social issues include concern over cybersecurity given recent increasingly sophisticated and intricate financial crimes, a decreasing productive population along with an aging society, and declining opportunities to meet financial needs in rural towns due to a reduction in the number of tellers and ATMs at financial institutions in such regions.

In addition to these recent changes in the social environment, COVID-19 has spread globally and has had a great impact on social conditions both in Japan and overseas. The wide-reaching and prolonged spread of the disease, along with the resulting strengthened restrictions by the governments of various countries, are affecting the real economy as well as personal behavior and lifestyles more drastically than estimated, causing the business environment surrounding the Bank’s group to remain uncertain. Amid such an environment, the Bank’s group is thoroughly enforcing measures to prevent the further spread of the disease based on the requests by the Japanese national and local governments, including working-from-home and staggered working hours, thereby ensuring the safety and security of the Bank’s group’s stakeholders, including its business partners and employees. Through these efforts, the Bank’s group, as an entity supporting social infrastructure, will continue its business without interruption and fulfill its role of supporting the everyday lives of the customers.

Issues to Be Addressed

The Bank’s group plans to:

Domestic Business Segment

ATM Platform Business

To attract more customers to our ATM services, we have been responding to varying customer needs by offering services such as charging (loading money onto) electronic money for public transportation or QR code settlements, in addition to our services for existing business partners such as financial institutions. We will continue to develop initiatives to increase the number of business partners and customers.
Furthermore, our next-generation ATMs, which we started installing in September 2019, reduce the environmental burden of the main body. In addition, by minimizing the frequency of supplying and collection of cash within the ATM through a more precise handling and management of cash, we are expecting these ATMs will contribute to reducing CO2 emissions in terms of logistics. Through developing and providing services that are not bound to cash deposits and withdrawals and instead flexibly responding to changes in the needs and values of social structures and customers via new services utilizing newly equipped functions including high resolution cameras and scanning functions, we will strive to provide new value of ATMs.

Settlement and Account Business

While digitalization, shifts to cashless payment, and automation are progressing, we have developed a framework to enable quick opening of new accounts online with simplicity and convenience. We will expand our platform to provide unique products and services, with a view to partnerships with external corporations.

Business Diversification

We will offer new value in customers’ daily lives by highly integrating not only the knowledge concerning safety and security gained from ATM and account operations in the Bank’s group but also the knowledge that we gained via partnerships with external corporations. There are issues that have become apparent with social change, such as whether an increasing number of foreigners are able to live in Japan with peace of mind and whether anyone can use new settlement and other services safely and securely, etc. Taking our efforts to contribute to tackling such issues as business opportunities, we will organize structures and systems which can respond to such issues with flexibility and agility. These initiatives include the establishment in June 2019 of Seven Global Remit, Ltd., a consolidated subsidiary of the Bank (the Bank’s investment ratio: 100%) that operates financial services for foreigners and in July 2019 of ACSiON, Ltd., a consolidated subsidiary of the Bank (the Bank’s investment ratio: 60%) and a joint-venture company with ISID that promotes business in the security field, utilizing the Bank’s expertise in countermeasures against financial crimes.

Overseas Business Segment

The United States

For FCTI, Inc., the Bank’s consolidated subsidiary in the United States, although there have been signs of a decrease in the number of transactions at some ATMs under the impact of stricter restrictions due to COVID 19, operations are stable. Aiming to improve profitability from a medium- to long-term perspective, we will proceed with measures including the preparation of new services through synergies with 7-Eleven, Inc. (U.S.).

Asia

PT. ABADI TAMBAH MULIA INTERNASIONAL, the Bank’s consolidated subsidiary in Indonesia, will steadily promote the ATM business through synergies with local partner corporations. In addition, in the Philippines, where the market for ATMs is expected to expand alongside high economic growth, the Bank’s consolidated subsidiary Pito AxM Platform, Inc. will promote preparation to commence operations in the ATM business.

We expect that people’s daily lives and values as well as social structures will change radically due to COVID-19. We therefore must be even more attentive to social changes and increasingly diverse customer needs and take flexible measures to adopt the fruits of technological innovation. To this end, we will proactively take initiatives to advance workstyle reforms assuming the co-existence with COVID-19 and continue “responding to change while strength - ening fundamentals” in every business area of the Bank’s group. That is, we will boldly, flexibly, agilely, and proactively deal with environmental changes without being caught up in conventional ideas and continue to evolve while firmly maintaining and strengthening our strengths.