Partnering with Fukuoka Financial Group to Boost Kyushu’s Economic Development by Leveraging FFG Lease for Regional Revitalization

　

　

　

　

From left: Mr. Kotani of the Fukuoka Business Division, Tokyo Century,
and Mr. Tamura, Chairman of FFG Lease　

　　

Overwhelming Name Recognition, Credibility, and Massive Volume of Data as the Strongest of Advantages

—What’s the background behind Tokyo Century’s capital participation in FFG Lease?

Tamura: When I was President of Corporate Business Unit II at Tokyo Century—before assuming my current position—I was very concerned that the equipment leasing market had already become saturated. Sustainable growth depends upon strengthening area- or region-specific strategies, and with that in mind, I found the Kyushu region to be particularly attractive. The momentum there can only increase, with the redevelopment of the Hakata and Tenjin areas of Fukuoka underway and Taiwan’s TSMC, the world’s largest semiconductor manufacturer, expanding into Kumamoto. So, the region will attract a lot of investment from Japan and abroad.

　

Meanwhile, Fukuoka Financial Group was seeking to develop a leasing business for expanding customer service to meet diversifying financial needs. Since both companies recognized each other as the necessary partner to address issues, and we had already established a close relationship, we shared a common awareness of the challenges. What’s more, the decision seemed clear, leading to capital participation in Juhachi General Lease under Fukuoka Financial Group’s umbrella.

　

—What specific roles do Fukuoka Financial Group and Tokyo Century play in developing FFG Lease’s business?

Tamura: Fukuoka Financial Group forms the largest regional financial group in Japan, with four regional banks in Kyushu under its umbrella. It has built a network across a wide area of Kyushu, including Fukuoka, Kumamoto, and Nagasaki. There is no doubt that fully leveraging its overwhelming name recognition and credibility, as well as its vast customer base, is the key to developing FFG Lease’s business.

　

Kotani: FFG Lease handles a large variety of items, including vehicles and construction machinery, as well as information devices and medical equipment. In leasing so many items to customers, our role is to transfer the Tokyo Century Group’s accumulated expertise so that FFG Lease can provide higher value-added financial services than it could before.

　

　

—Please tell us about the initiatives you are focusing on now.

Kotani: Establishing leasing schemes that utilize subsidy programs is one of Tokyo Century’s areas of expertise. We’re working with our employees who are on loan to FFG Lease to support its proposal activities while sharing the expertise we’ve cultivated over the years.

　

Tamura: It’s been three years since Tokyo Century took a stake in our company, FFG Lease. During that time, we opened new branches in Kitakyushu, Kumamoto, and Kurume. We’re also planning to open a branch in southern Kyushu in the near future. And we’ve put into action a number of ideas, such as revamping our core system to create a comfortable IT environment and establishing an independent business unit to strengthen and expand our business in the auto leasing field. We will provide necessary information to all of our employees, and at the same time, we’d like to map out measures that will reinforce the elements necessary for the company’s growth.

　

　

　

Tamura: FFG Lease employees seem to feel that the atmosphere within the company is changing,
and expectations are rising for the future.

　　

Close Cooperation Allows Both Companies to Gain New Knowledge about Regional Market Conditions and Leasing Business Characteristics

—What difficulties did you encounter while collaborating with Fukuoka Financial Group?

　

Kotani: At first, I was always nervous in the discussions to reach an agreement between the two companies because participants were all close to management. Moreover, this project required cooperation from different business segments, such as real estate. Because I had no prior knowledge or experience in some part of this project, I remember that I was somewhat resigned to the situation, thinking that I had no choice but to seek their cooperation. I ended up allowing myself to rely on other people for tasks beyond my current ability, like creating reference documents.

　

Tamura: This was a very rare project for Tokyo Century, bringing together so many employees from different fields, such as equipment leasing, auto leasing, and real estate. I asked Mr. Kotani to join the project because I thought being involved in this type of business would lead to personal growth. But did you have a hard time working in such different ways?

　

Kotani: That may be true. However, even though I had fewer than ten years of experience in my career, I had the opportunity to promote the project while frequently communicating with quite a few executives and general managers, so I think it was a valuable experience that will definitely come in handy.

　

　

　

Tamura: At the time I was working at the head office, I felt that Mr. Kotani was highly capable and well-balanced in all areas,
including negotiations, listening, proposing, and administrative work.　

　

　

—I heard that you also worked closely with the person in charge at Fukuoka Financial Group.

　

Kotani: Yes. I learned a lot about local market conditions, the circumstances of the financial industry, and so forth. I feel that I was able to be of some help in creating the business plan.
The business plan for FFG Lease had to be prepared on the FFG side upon the change of the investment ratio. He seemed a little puzzled on how to predict the revenue structure and earnings of the leasing company, given his background in banking. So, I explained a unique way of thinking about leasing through examples, such as there are leasing arrangements in which the contract is renewed and extended, even after a contract period has expired, which is different from bank lending.

　　　

　

　

Kotani: I shared the same concerns and tasks with FFG staff,
so it was reassuring to work together to move the project forward.

Pooling the Wisdom of Each Organization to Become the Number One Leasing Company in Kyushu, Trusted by Both the Local Community and Employees

—In July of last year, FFG Lease established a subsidiary, Regional Investment Fukuoka Co., Ltd. Could you share your business development plans?

　

Tamura: Regional Investment Fukuoka was established to take on challenges in new areas boldly and from a broader perspective. We will focus on real estate for the time being, but if we can successfully transfer the expertise accumulated throughout the Tokyo Century Group, we believe that we’ll be able to provide high-value-added services beyond the frameworks of real estate and leasing. We’ve already created an auto leasing business proposal that incorporates services in areas such as taxation and insurance through collaboration with Nippon Car Solutions, a Tokyo Century Group company. And we’ll continue to compile examples like this to confirm the value of our presence and contribute to the local economy.

　

—To wrap up our conversation, could you share your aspirations for the future?

　

Tamura: I’m proud to say that FFG Lease is staffed with excellent human resources from four regional banks knowledgeable about the local financial situation, as well as those possessing in-depth knowledge of leasing from respective departments of Tokyo Century and Nippon Car Solutions. Our personnel, both new and mid-career hires, are growing every day. Our diverse workforce will enhance our sense of unity and steadily increase our capabilities. And we’ll become a resource that customers choose and trust. Our basic premise is to continue to expand our business performance through activities that revitalize the region. We’ll strive to improve the treatment and engagement of all employees, aiming to be the number one leasing company in Kyushu, where everyone can continue to work with enthusiasm.

　

Kotani: I consider my position as a conduit between FFG Lease and Tokyo Century. I hear about issues from the employees loaned from Tokyo Century, share them with the Company, and provide feedback on solutions. If I can contribute to the growth of FFG Lease and the revitalization of the local community with this mindset, I’m sure that I’ll gain a large amount of confidence in my career. Also, I’ll contribute to making FFG Lease a financial and service company that can meet all kinds of needs, taking into account products targeting local companies as well as initiatives for government agencies with which FFG Lease has had few business transactions.

　

　

　

From left: President Kodama of FFG Lease, Vice President Hayama of Regional Investment Fukuoka,
Mr. Kotani of Tokyo Century, and Chairman Tamura of FFG Lease

　

　

　

　

　

Note: The contents of the article and the position titles are current as of the date posted.

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