A group interview in regard to Shinsei Bank's corporate governance was conducted among Mr. Ernest M. Higa, Outside Director, Mr. Hideyuki Kudo, President and Chief Executive Officer, and Mr. Shigeki Toma, Advisor to Shinsei Bank (the previous President and Chief Executive Officer), with Mr. Ken Takamiya, a bank sector analyst at Nomura Securities Co., Ltd., serving as the moderator. (Interview was conducted in April 2015)

Special Feature : President's Conversation with Investor

From left

Shigeki Toma
Advisor, Shinsei Bank
Hideyuki Kudo
President & CEO, Shinsei Bank
Ken Takamiya(Moderator)
Bank Sector Analyst Nomura Securities Co., Ltd.
Ernest M. Higa
Outside Director, Shinsei Bank

"Determining the functions of our banking, leasing, unsecured personal lending and other operations we can link together by applying the new technologies and know-how referred to as FinTech to the APLUS platform and the resulting "reactions" will be crucial to the Group? next great leap forward."

Nakamura:We are increasingly hearing the term "Fin-Tech" being used in relation to Japan? banking industry. The mega banks are taking up the FinTech challenge by inviting venture firms to participate in contests. How is the Shinsei Bank Group? response to the FinTech challenge different from that of the mega banks? Also, I believe that APLUS is an important component of the Shinsei Bank Group? settlements platform. As such, what initiatives are being taken by APLUS to differentiate the Shinsei Bank Group from the competition?

Kudo:"FinTech" is presently a popular term used to refer to many different things, but here at the Shinsei Bank Group we hope to pursue initiatives that represent the true meaning of "FinTech." We will prioritize those initiatives that strengthen our existing businesses and are meaningful for our customers. For example, we will use FinTech first to enhance our competitiveness in our settlements business and our finance business directed at individuals and small businesses.

Watanabe:At APLUS, we have three core businesses?ur original shopping credit business, the credit card and settlements businesses. We now provide a highly granular range of products to individual customers and to the many affiliate shops and alliance partners that we also count among our customers. This is the APLUS platform. APLUS? strength is its ability to leverage the network of many businesses it has built over the years. In addition, we have been able to expand our customer base by adopting a unique strategy that utilizes the functions of the T Point service program. I believe that applying this core strength across the entire Shinsei Bank Group will help to further differentiate the Group from other financial groups. Going forward, how we connect the new technologies, services and expertise being referred to by the term "FinTech" will be a major theme. There is a company with FinTech to whose customer base and the delivery of new services and platforms by adding new functions, such as credit card and settlement services. This kind of collaboration is one route we can pursue. Another route is the one being applied, which is the application of FinTech to add other functions to our existing settlements business. We are now considering how we can incorporate both of these and deliver the best of both to our customers. Either way, as long as we provide good services to our customers, there is no limit to the potential expansion of our customer base. As one of the active leaders of the Shinsei Bank Group, we at APLUS intend to make every effort to achieve that expansion.

Sugie:In the coming age of FinTech, I think we will be speaking less about customer bases and more often about databases. The world of big data will open up many new opportunities and potential for an integrated Shinsei Bank Group. Given the many common features of the leasing, shopping credit, credit card, and unsecured personal loan business formats, as well as the banking business, our customer? digital footprints are extremely large. This provides us with a huge volume of data that is already available for analysis and we are beginning to utilize it in our businesses. We are different from the mega banks, and it will be very difficult for us to use FinTech to create a new global standard. However, in our pursuit of niche markets, I think we will find some interesting applications for big data that will lead to new business.

Kudo:If I were to try and point out one typical FinTech application, it would be an area like small-lot finance, where banks have not been fully meeting the credit needs of customers. This function is what makes APLUS an interesting company. APLUS possesses many functions that can be used in combination with the Bank? business or combined with unsecured personal loans and leasing transactions. Putting APLUS? functions and capabilities to use across the Group could provide the impetus for a great growth.

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