New Hybrid Digital Bank, PurePoint™ Financial

This development marks a true milestone in terms of the global development of Japanese banks.

We have already seen Japanese insurers using M&As as they seek to internationalize their operations, including telematics-based auto insurance, as they enter the fray in cutting-edge financial services in mature markets.

Until now, overseas expansion in Japan’s banking sector has typically started with transaction banking and hinged on wholesale operations (trade finance, foreign exchange, and investment banking services to support the overseas development activities of Japanese companies).

This initiative signifies an expansion into retail operations of locally incorporated subsidiaries in North America with which the bank has a long history and abundant goodwill. This initiative will also provide valuable feedback that can be applied to the Japanese market. To succeed in this market will require meeting the needs of the millennial generation with state-of-the-art technologies such as IoT and AI and conducting operations in a way to develop next-generation digital financial services.

 

S&P Global Market Intelligence:  Mitsubishi UFJ Financial seeks stable dollar funding with new US online biz

NIKKEI: Mitsubishi UFJ expands in US with online banking

 

Celent Report Recommendation: Defining a Digital Financial Institution: What “Digital” Means in Banking

 

ハイブリッドデジタル銀行:ピュアポイント

またひとつ、本邦金融機関によるグローバル展開のマイルストンが刻まれた

既に保険セクターではM&Aによるグローバル事業展開が進んでおり、テレマティクス自動車保険をはじめ、成熟市場における最先端の金融サービスへの参入が始まっている。

これまで銀行セクターの海外展開は、トランザクションバンキングを筆頭に、ホールセール業務(なかでも、日系企業の海外展開を支援する貿易金融や外国為替、投資銀行業務)が中心であった。

本取り組みは、長い歴史と強い暖簾を持つ北米現地法人における個人向けリテール業務の展開であり、その挑戦と成果は、日本市場へこれまでにないフィードバックをもたらすであろう。

ミレニアム世代のニーズにマッチしたIoTAIなど最先端のテクノロジー活用と、相応しい事業体の運営による次世代デジタル金融サービスの展開が大いに期待される。

 

関連したセレントレポートの推奨:

バンキングにおける「デジタル」とは何か

日本の銀行業界におけるレガシー・モダナイゼーション パート2:銀行業界への提言

 

– Click to read more

 

 

 

MoneyGram Agrees to Merge with Ant Financial

Through this $880 million deal, Ant will connect MoneyGram’s network of 2.4 billion bank and mobile accounts with Ant’s customers.
Ant, which is working closely with Alibaba, is seeking to expand its global presence amid increasing competition with the Tencent group at home.

Last year, Rakuten, Japan’s top e-commerce firm, downsized its international presence once again, closing its marketplaces in the UK, Spain and Austria, following a streamlining strategy to pull out from Southeast Asia and Brazil last year.
As the Rakuten case shows, the global expansion of e-commerce is more difficult than that of financial services.

The "last-mile" logistics problem still exists in e-commerce, requiring huge assets in local distribution centers.
Meanwhile, in modern financial services, technologies for mobility and security are the key.
In this sense, this M&A deal can be seen as an effective investment. Similar trends will likely accelerate in Asia as well.

Globalization and Digitization

Globalization at Japan’s leading firms continues unabated.

Various market segments have seen record M&A activity as companies continue to seek strategic means of diversifying their portfolios and global growth opportunities in tandem with boosting corporate value and profitability over the mid to long term. At the same time, the weakening of the yen in the wake of the 2008 collapse of Lehman Brothers has pushed the forex market to a point that makes the price tags of these mergers relatively more expensive, meaning more latent financial risk. Against this backdrop, this post examines recent global M&A trends, related background and risk, and the outlook and possibilities across business segments.

 

1. Tokio Marine Holdings’ June 2015 announcement of the acquisition of U.S.-based specialty insurance group HCC Insurance Holdings:

It is significant that the nation’s largest non-life insurer is not sitting idly but instead is boldly striving to increase the ratio of its business derived overseas. This merger was valued at 940 billion yen ($7.5 billion). It launches a new chapter in the history of this company. This decision is one that could only have been taken by a company with a wealth of experience and a successful track record.

According to the insurer, this deal will have the following benefits:
・Result in greater scale and profit potential overseas
・Make possible the establishment of a more globally diversified business portfolio
・Enable improved capital efficiency and sustainable profit growth.
This move and the above rationale articulated by the firm only serve to reaffirm that Japanese firms are and will increasingly be looking to expand globally.

These moves have been driven exchange rate and interest rate considerations and more by a desire to enhance the scale, scope, and efficiency of business operations. This, in turn, has been prompted by a rise in the ratio of foreign investors and more vocal “activist” shareholders.” Seen another way, these efforts—the manifestation of the pursuit of M&A activities focused overseas—reflect the grim reality of the difficulty finding good business opportunities in and the rigidity of the domestic market.

The market is anxiously anticipating further deregulation and efforts to bring more market players into the market not only in insurance, but across the entire financial services industry. Furthermore, overseas new business development through outbound M&As is expected to bring synergies to the existing domestic market.

 

2. Meiji Yasuda Life’s July 2015 announcement of the acquisition of StanCorp Financial Group:

The gravity of this major Japanese life insurer’s decision to acquire StanCorp Financial Group is readily apparent. Meiji Yasuda Life mobilized funds greatly exceeding those that earmarked for M&As under the company’s interim investment plan.
The acquisition transaction totaled around 600 billion yen (about $5 billion), more than double the 250 billion yen (more than $2 billion) outlined in the corporate plan, the Meiji Yasuda Next Challenge Program, formulated in June 2014. The media touted the acquisition as the largest acquisition yet by a Japanese life insurer.

Japan’s life insurance market accounts for a whopping 20% of the global life insurance market, only slightly behind the 22% share made up by the U.S. The market’s compound average growth rate (CAGR) of 3% over the past 10 years and the degree of concentration of profits—the largest five companies account for more than 60 %—indicate the mature nature of the market. At the same time, revision of the company’s Stewardship Code in February 2014 and its Corporate Governance Code in June 2015 have encouraged institutional investors and issuers to seek a greater return on equity (ROE).

With ample capital on hand, the company’s bold strategy of international M&As mandates the diversification of its revenue sources and business portfolio, the establishment of a business foundation in the world’s largest market, and a high level of governance needed to manage differing business portfolios. Given its scale and its current difficulties, there is no doubt that the market will be focused on the moves that Japanese financial institutions make as they seek to pioneer a new avenue toward the future. Japan’s life insurance industry has clearly burst into an age of competition that will place a premium on action and skill when it comes to overseas strategies.

 

3. Nikkei media group’s July 2015 announcement of the acquisition of the Financial Times Group:

The purchase of the Financial Times by Nikkei media group, publisher of Japan’s leading economic daily the Nihon Keizai Shimbun, is a bid to springboard beyond being Asia’s most formidable economic media outlet and to accelerate its evolution and transformation into a global and comprehensive information company.

Already, digital paid subscribers for both of the publications have reached around 1 million readers, a solid community of readership in the capital market and real economy . With their combined resources of reporters, editors, news-gathering networks, and ability to provide information directly from and between the major capital markets of London and Tokyo, the new entity boasts an unprecedented scale and scope for producing content.

The organization can be expected to serve as a global platform for evolution. An integral part of this process is the Nikkei subsidiary Quick Corp., which provides financial and capital market information services. By further enhancing the machine-readable digital content offerings and distribution platform, Nikkei Group with the FT Group under its umbrella could evolve into a global market data provider unlike any the world has ever seen. Celent expects the new group to combine its steady flow of the latest data, timely information, and broad coverage with features including analytical functions and compatibility with digital devices and robo-advisory services.

If this new entity becomes a new economic media powerhouse, potentially even the top in the world, then it can be expected to help accelerate the globalization of Japan’s capital markets.

 

4. M&As, globalization, and things digital:

These three acquisitions have commonalities that offer important insights related to the direction of Japan’s financial business and technology.

  • The transformation of top companies:
    No one in Japan believes that the current exchange rates are at advantageous levels for Japanese companies to be acquiring overseas firms. However, a partial list of major M&As excluding the financial sector following the collapse of Lehman Brothers reads as follows: Canon ($2.82 billion), Japan Post ($6.42 billion), Otsuka Pharamceutical ($3.51 billion), Daiichi Sankyo Company ($4.6 billion), Itochu Corporation ($1.04 billion yen), Kintetsu World Express ($1.21 billion yen), Suntory (1.6 billion dollars), Asahi Kasei Corporation ($3.16 billion), and LIXIL Corporation ($3.84 billion). Clearly, leading companies in segments across the economy are boldly looking abroad.
  • Fundamentally changing of outbound M&As:
    These massive deals are clearly indicative of change, namely geopolitical change. Until this sea change , Japanese firms were focused on smaller deals in Southeast Asia to the tune hundreds of millions of dollars; today they have their sights set on mature Western markets and megadeals that on the order of billions of dollars. There is an analog here to innovation in that these firms are tackling something that extends beyond their capacity to measure with their corporate metrics as they look to buy businesses, brands, and customers that involve unknown elements.
  • Nimble, top-down decision-making:
    The leading companies that were able to make these kinds of crucial decisions involving massive sums of money realized—or even surpassed—the commitments outlined in their overseas business strategies and budgets. Clearly, the swift decision-making witnessed here differs from the traditional image associated with Japan’s manufacturing and financial institutions of being painstakingly bottom-up, slow-developing consensus-building organizations. This kind of top-down approach hinges on strong leadership, external resources (advisory firms) well versed in the company’s strategy, and a rock-solid financial foundation.
  • Keys to success will prove governance and digital initiatives:
    The companies in question here have all gone on record saying that new governance is the key to success. Like technology, it is hard to quantify or put a figure on the value of high-caliber management teams that can be entrusted to skillfully run businesses in areas spanning diverse geopolitical situations. In addition, both technology and management are highly dependent on human resources, which tend to fade with time. This prompts the question of whether these firms will, in their forays into “unknown new lands,” be able to manage their new enterprises well. In the device industry, business and IT are two sides of the same coin and governance that does not take into account both is ultimately not viable. This is an area that has both risk and poses challenges for major global firms.

In addition, technology has become a synonym for digital. In its comments (summarized below) on announcing the acquisition of the FT, NIKKEI noted that the move was part of a larger trend that extends beyond the media industry and into the financial information arena. Replacing the word “media” with “ financial services” and you the comments are essentially a strategy for global financial service players. Digital has drastically shortened the distance between these.

  • Business development that leverages the digital merits of being able to deliver information anywhere in the world instantly will be critical. The conventional relationship between paper and digital media has already been turned on its head.
  • Mergers and acquisitions are spilling beyond borders and regions. In turn, this has increased the significance of forging complementary relationships and increased the meaning of strategically mutually beneficial alliances for the media. The partnering of these major media firms with distinct regional strengths in the West and in Asia opens the door to genuine realignment and innovation.

 

グローバリゼーションそしてデジタル

日系最大手企業のグローバリゼーションが止まらない。

いずれも、各セグメントでの過去最高額規模のM&Aを通じて、中長期での収益性と企業価値の増強、グローバルな成長機会と事業ポートフォリオの分散をその戦略的な意義として掲げる。一方で、リーマンショック以降、歴史的な円安局面にある為替相場は、その買収価格の高騰と財務的なリスクを顕在化させている。本稿では、直近のグローバル化動向、その背景とリスク、各セグメントの可能性を展望する。

 

1. 米国スペシャルティ保険グループHCCインシュアランス・ホールディングス社の買収

2015年6月 東京海上ホールディングス 発表
損保業界最大手、海外比率でも最上位の企業が立ち止まらないことに、大きな意義を感じる。買収総額は約9,400億円。経験と実績の豊富な第一人者においてのみ可能な巨額な意思決定は、同社の歴史にまた新たなページを加えた。
同社発表にある、
①海外事業の規模・収益の更なる拡大を実現する
②グローバルに、より分散の効いた事業ポートフォリオの構築を可能とする
③資本効率の向上と持続的な収益成長を可能とする
の3つの方向性は、今後も、日系企業に共通するグローバル展開の方向性と認識される。
為替、金利などの投資条件の考慮以上に、本来事業の規模、範囲そして効率性や高度化を追求する姿勢は、外国人投資家比率の高まりと共に、「物言う株主」から継続的に要求されている。逆に、こうした取り組みが、専ら海外M&Aを通じてのみ顕在化していることは、国内市場の硬直性とそこでの新たな事業機会の困難性を写す。
保険に限らず、金融サービス市場全般について、一層の規制緩和と新規事業者の参入促進が待望される。更には、アウトバウンドM&Aを通じた海外新規事業開拓が、国内既存市場へのシナジー効果をもたらすことが期待される。

 

2. 米国の上場生命保険グループStanCorp Financial Group の買収

2015年7月 明治安田生命保険 発表
中期計画に定めた投下資本金額上限を遥かに上回る投資金額に、日系大手生命保険会社の決意を感じる。
本件投資総額約6,000億円は、同社2014年6月策定の「明治安田NEXTチャレンジプログラム」における上限2,500億円を凌駕する金額規模、日系生命保険のM&Aとして過去最大規模と報じられた。
日本の生命保険市場は、全世界の20%を占め、米国(22%)に次ぐ第二位の規模を誇るが、その成長性(過去10年間の年平均成長率3%)と寡占度(上位5社で60%以上)から成熟市場とみなされる。一方、スチュワードシップ・コード(2014年2月)とコーポレートガバナンス・コード(2015年6月)の改定は、機関投資家と発行体企業に一層のROE経営を促している。
潤沢な手元資金を背景に、果敢な海外M&A戦略を遂行する同社の戦略は、
①全体収益と事業ポートフォリオの多様化、②世界最大市場での事業基盤の獲得、と理解されるが、加えて、
③異なる事業ポートフォリオの管理のための高度なガバナンス能力、が要請される。
その規模と難易度において、新次元に挑む日系金融機関の動向が注視される。生命保険業界においても、確実に、海外戦略の機動力と巧拙を競う時代となった。

 

3. 英国の有力経済紙フィナンシャル・タイムズ(FT)を発行するフィナンシャル・タイムズ・グループの買収

2015年7月 日本経済新聞社 発表
本件を通じて日経は「アジアで最強の経済メディア」という枠を超え、グローバルな総合情報企業への進化を加速すると感じる。
既に、両紙のデジタル有償購読者は100万人に迫り、資本市場と実物経済における良質なコミュニティを形成している。また、記者や編集の人的資源や取材網、ロンドンと東京の両資本市場に直結した情報提供機能など、前例のない規模でのコンテンツ力が期待出来る。
今後は、グローバルプラットフォームの進化に期待する。その戦略子会社QUICKを通じた金融・資本市場情報配信サービスは、マシンリーダブルなデジタルコンテンツとその配信基盤を拡充することで、他に類を見ない真にグローバルなマーケットデータプラットフォームへの進化を可能とする。データ鮮度やカバレッジに加え、デジタル機器対応とロボアドバイザリーなどの分析機能などが期待される。
世界最強の経済メディアの実現が、日本の資本市場の一層のグローバル化を加速することを期待する。

 

4. M&Aとグローバリゼーションそしてデジタル

この3案件に共通する事柄は、日本の金融ビジネスとテクノロジーに多くの示唆をもたらす。

1) トップ企業の変貌:
現下の為替水準が、日系企業のアウトバウントM&Aに快適な水準であるとは、誰も感じていない。しかし、金融セクター以外の大型案件を振り返ると、キャノン(28.2億ドル)、日本郵政公社(64.2億ドル)、大塚製薬(35.1億ドル)、サントリー(160.1億ドル)、旭化成(22.1億ドル)、LIXIL(38.4億ドル)など、各セグメントのトップ企業が、不断に、果敢に挑んでいる。

2) アウトバウントM&Aの地殻変動:
これらの巨額ディールからは、明らかに地政学的な変化が見出せる。それまでの、将来的な成長を期待した東南アジアの小規模(数億ドル)の取引から、現下の主体は、完全に成長した欧米先進国市場における、自社に無い(若しくは弱い)事業分野のメガディール(数十億ドル)へシフトしている。それは、イノベーションと同様、自社のこれまで培った事業価値尺度では測れない、「見えない事業やブランド、顧客」を買うチャレンジである。

3) 意思決定のトップダウンと超迅速化:
こうした、巨額で高度な意思決定を迅速に行えたトップ企業が、中期計画でコミットした海外事業戦略や予算を、実現(若しくは凌駕)している。明らかに、日本の製造業や金融機関の特長であった、緻密な積み上げによるボトムアップの意思決定プロセスとは、そのスピード感が異なる。このトップダウン・アプローチは、強力なリーダーシップと、その戦略の立案と実行に長けた外部リソース(アドバイザリー・ファーム)の活用、そして盤石な財務基盤の組み合せによってのみ達成される。

4) 成功の鍵は、ガバナンスとデジタル:
各社とも、新たなガバナンスがその成功の鍵と述べている。異なる地政の事業を委ねる、卓越したマネージメントチームの存在は、テクノロジーと並んで、その数値的な評価が困難な資産と言える。また両者は、人に依存し、往々にして経年と共に劣化する。「見えない大陸」で、初めての事業を統治することが果たして可能か?ビジネスとITが表裏一体である装置産業において、両者を切り離したガバナンスは成立しない。ここに、グローバルメジャー各社のリスクと課題が見出される。

また、今日、テクノロジーはデジタルと同義であろう。日経の発表文にある、以下のコメントは、メディアビジネスに限らず、広く金融情報産業全般に当てはまる動向である。「メディア」を「金融サービス」と読み替えれば、そのまま、グローバル金融サービスの戦略となる。デジタルは、両者の差異を限りなく薄めた。

  • 世界のどこにでも即座に情報を届けることのできるデジタルの長所活用した事業展開が欠かせない。既に、デジタルメディアと紙媒体との関係は逆転している。
  • 合従連衡の進展は、国や地域を越え、グローバルな補完関係を持つメディアが戦略的に手を結ぶ意味を拡大した。欧米とアジアという異なる地域で強みを持つ主要メディア同士による本格的な再編は、新機軸を切り開く。