Newly established NTT Docomo Financial Group Inc. plans to provide customer-friendly financial services by combining the strengths of digital technologies like smartphones with brick-and-mortar stores, including the retail shop network of its parent company, NTT Docomo Inc., according to President and CEO Takashi Hiroi.
"We want to provide customer-friendly financial services that are easy to understand and use," Hiroi said during an interview with The Yomiuri Shimbun.
The company was launched on July 1 by integrating the financial segments of a corporate group led by NTT Docomo Inc., Japan's largest mobile phone carrier and a subsidiary of telecommunications giant NTT Inc.
The following is excerpted from the interview.
The Yomiuri Shimbun: How do you plan to proceed with the collaboration between NTT Docomo Financial Group's financial services and NTT Docomo Inc.'s telecommunications services?
Takashi Hiroi: We want to first prioritize enhancing collaboration among our financial services. We believe that is where synergy lies. If we look at the entire NTT group, the telecommunications market has reached maturity. Growth areas can be found in data centers and finance. Finance serves as the group's pillar of growth.
Yomiuri: Do you plan to add more benefits for NTT Docomo Inc.'s smartphone users when they use NTT Docomo Financial Group's services, like opening bank accounts?
Hiroi: We certainly want to consider taking such measures to attract customers.
Yomiuri: Currently, NTT Docomo users can earn up to 20% back in reward points when they pay their mobile phone bills with the company's "d Card." Is it possible that this rate could be raised further?
Hiroi: I cannot make promises about the future, but we want to improve the quality of our services so that such measures will become feasible.
Yomiuri: Borrowers are now facing a heavier debt burden due to factors such as rising interest rates. How do you plan to provide mortgage services under these conditions?
Hiroi: Mortgages will be the main service for NTT Docomo Financial Group. Housing prices are soaring, and interest rates are rising. We aim to offer the lowest possible rates in the industry that best suit the needs of our customers. We want to consider linking our services so that customers who use multiple services can receive preferential treatment on their mortgages.
Yomiuri: What is your plan on developing NTT Docomo Financial Group's app?
Hiroi: We will improve the functions of the "d Payment" service app and improve its usability so that it serves as the gateway to the group's financial services. We also aim to develop AI capable of providing advice to customers on investment and other topics tailored to their values and lifestyles. We want to provide customer-friendly financial services that are easy to understand and use by utilizing the digital technologies and physical retail stores, such as those of NTT Docomo Inc.
Yomiuri: You have set a target of increasing NTT Docomo Financial Group's business revenue to 1.2 trillion yen in fiscal 2030, which ends March 2031. This is a significant rise from the 596.5 billion yen in fiscal 2025. Are you considering mergers and acquisitions or other moves to drive this growth?
Hiroi: Basically, we are assuming organic growth. However, the possibility of mergers and acquisitions certainly exists. If there are opportunities for our business to grow, we will not hesitate to act.
Yomiuri: Teruhisa Kurita, who has served as the commissioner of the Financial Services Agency, assumed the chairman post at NTT Docomo Financial Group. What do you expect from him?
Hiroi: (Mr. Kurita) is a person of outstanding character, and having served as the commissioner of the Financial Services Agency, his industry knowledge is second to none. We look forward to receiving his advice on growth strategies and corporate governance.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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