IR-FAQ
Important FAQ | Corporate Information | Financial Information | Stock Information
Corporate Information
Q1 |
Could you explain AIFUL's strategy in the consumer finance business? |
A1 |
The operating environment continues to become increasingly harsh. Despite ongoing demand for funds, market scale remains in a contraction mode. This is largely attributable to the introduction of restrictions on total lending following full enforcement of the Money lending business act on June 18, 2010, reductions in maximum interest rates pursuant to the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates (capital subscription law), the failure of a major consumer finance company in September 2010 on the back of claims for interest repayment, which continue to hover at a high level, and other factors.
Nevertheless, from the medium to long-term perspective, we can expect the competition to get somewhat lighter due to a decline in the number of market participants and reductions in credit costs as a result of the fall in the number of borrowers with loans from multiple lenders. Thus, we intend to keep the consumer finance business as the core business of the AIFUL Group.
The management environment that surrounds the AIFUL Group is likely to remain challenging. In response, the Group will take steps to strengthen its business base, by building a quality loan portfolio, cutting costs through comprehensive cost structure reform, and reorganizing its business through the Group reorganization. To respond to the support and expectation of all shareholders, the Group is fully committed to steadily executing its Business Revitalization Plan. |
Q2 |
What is LIFE's strategy in the credit card business? |
A2 |
In response to changes in the external management environment, LIFE Co., Ltd. reformed its cost structure and dissolved card-related partnerships that were unlikely to become profitable.
Following the Group reorganization, LIFE Co., Ltd. will concentrate its management resources on the credit sales and credit card business, and strive to become an appropriate card provider for quality customers and bolster earnings by focusing on the key initiatives of strengthening the website marketing channel and promoting the point program. |
Q3 |
Can you outline progress in the business loan sector? |
A3 |
At present, the small business loan sector faces a tough environment with the number of corporate bankruptcies on the rise as a result of the deterioration in business sentiment at small and medium-sized enterprises. However, there is a large latent demand for working funds, and the sector is extremely promising in the medium to long term. Thus, the AIFUL Group's future strategy targets the medium risk segment to nurture and strengthen business loans as the Group's second earnings base by taking maximum advantage of the resources and channels of each Group company and systematically organizing the Group's overall synergies in marketing and attracting customers. |
Q4 |
Can you explain the credit guarantee business? |
A4 |
In the credit guarantee business, the partner financial institution sells loan products to customers and also functions as the point of contact for these customers, and consumer finance companies provide services to the partner ranging from credit screening to loan guarantee. For consumer finance companies, this business promises to raise earnings by tapping into new customer segments, effectively utilizing the credit scoring expertise that they possess without using their own funds. The AIFUL Group offers unsecured personal loan guarantee and business loan guarantee. |
PAGE TOP