Significance of regional banks (local banks) in supporting companies through open innovation and benefits of working with startups

Current status of startup and corporate support by regional banks (local banks)

First, we will introduce the current status of startup and corporate support by regional banks.

The Changing Role of Regional Banks (Jibanks) in the Local Economy

Until now, the image of regional banks was that they generated revenue by providing loans to their customers, but they are facing the challenge of a declining population and declining industry in the regions where they are based, which has resulted in a decrease in the number of customers to whom they provide loans. In addition, negative interest rates have made it difficult to break even by simply providing loans.

In response to these changes in the environment, leading regional banks areSupporting the growth of client companies and protecting the employment of local businesses will lead to the development of the local economy.We have come to think of ourselves as not "loan recipients" as it has been in the past,Role of Regional Banks Shifting to "Partners in Protecting Local EconomiesThe company is doing this.

Current status of startup and corporate support by regional banks (local banks)

What is the focus of the regional bank's efforts to support businesses?Support for business startups and business succession in the regionIt is. Many regional banks have begun to focus on supporting start-ups, as helping entrepreneurs get started increases the number of lenders and benefits the bank in the long run.

In addition, because many companies are going out of business due to the lack of a successful generational transition,Support for smooth business successionWe are also engaged in the following activities. In addition, progressive regional banks haveLeading open innovation and promoting innovation in local companiesWe are also working on

Why Regional (Local) Banks Should Promote Open Innovation

The following are some of the reasons why regional banks should support startups and other companies through open innovation.

Can encourage the growth of local companies

One of the roles of a regional bank is to support local businesses through loans, but without growth in local businesses, major loan opportunities will not present themselves.If we can encourage the growth of local companies through open innovation, we can obtain new financing for the implementation of new businesses.It also leads to

Leading to solutions to local social issues

Open innovation is a method of promoting innovation through collaboration with outside organizations, and in some cases open innovation can solve social issues. For example, robotics technology can be used to solve human resource shortages, or automated driving technology can be used to solve traffic problems in underpopulated areas.

By promoting open innovation by regional banks,Potential to not only grow the company, but also to solve issues faced by the local communityis increased.

New financing sources can be developed.

Open innovation is a method of promoting innovation by collaborating with outside organizations. When a regional bank leads open innovation, it may serve as a hub between urban startups and regional companies, and this connection canIncreased likelihood of developing new financing sourcesI am sure it will be.

Examples of Regional Banks' (Jibanks) efforts to promote open innovation

Shizuoka Bank

At Shizuoka BankTECH BEAT ShizuokasaidEvent to Match Shizuoka Prefecture Companies with Tokyo StartupsThe event was held under the It was sponsored by all 35 municipalities in Shizuoka Prefecture to promote innovation among local businesses.

This is an initiative that is attracting attention as it encourages smooth decision-making by making the person in charge of the participating companies from Shizuoka Prefecture the person with decision-making authority, and leads to subsequent business negotiations, rather than being merely a social event.

Hiroshima Bank

Hiroshima Bank is an open innovation platformCREWW."Utilizing theOpen innovation promotion for companies located in Hiroshima PrefectureWe are working on

which matches startups with major companies in the Chugoku region.HIROSHIMA OPEN ACCELERATOR 2020".Then,Hiroshima Bank, in cooperation with Hiroshima Prefecture and CREWW, widely invites startups to create new industries in Hiroshima Prefecture.The program is designed to help startups to develop their business. Startups that pass multiple selections will collaborate with participating companies.

Let's support the growth of local companies through open innovation originating from regional banks (local banks).

The environment surrounding regional banks is becoming more challenging due to population decline, the decline of local industries, and negative interest rates. Because of these changing times, regional banks, as important players in local economies, must also change.

Regional banks often have branches in the metropolitan area,Can serve as a hub for matching local companies with startupsTherefore, the trend to stimulate the local economy by promoting open innovation will accelerate in the future.