Marketing Strategy
Japan’s financial industry has entered an era of unprecedented competition brought about by such factors as the reorganization of major banks and the entry of new businesses from other industries. With the elimination of unlimited guarantees on deposits from April 2002, customers will be more motivated to seek out a bank with a strong financial position.
   In this time of market upheaval, the Bank must do its best to avoid the necessity for an injection of public funds. To this end we drew up the “21st Century Marketing Strategy” with the aim of becoming a more solid, regional bank with a primary focus on retail and small-enterprise banking services.
   The Bank will improve its earning power by carrying out various measures such as the development of retail and small-scale enterprise banking within Nagasaki Prefecture, specialization in large-scale banking in areas outside the prefecture, such as Fukuoka, Tokyo, and Osaka, and a review of the branch network and widespread amalgamation and closing of branches. The Bank is beginning to see the planned results of its staff reductions, and it aims to lower their number to 1,830 by the end of March 2002. In addition, to implement widespread cost reductions through streamlining and unifying computer systems and back-office operations, and improve business operations through proactive IT investments necessary for future project expansion, the Bank reached a basic agreement with The Bank of Saga, Ltd. and The Chikuho Bank, Ltd. in December 2000 to jointly develop and share computer systems and combine back-office operations. We are currently preparing for the inauguration of this system in fiscal 2003. This project may include banks other than the three mentioned, and we intend to examine the possibilities of forming additional partnerships and joint ventures to further reduce costs and offer customers free access to services at a larger number of ATMs. To deal actively and promptly with customers’ needs, which have become more diverse and sophisticated due to the IT revolution, a new virtual branch called Digital Dejima was opened in June 2001 to offer financial services via Internet and telephone. This branch will provide a new channel for customer transactions, and we are planning to expand and strengthen such services in the future.

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