Japan Post is banking on its customers for its future growth. Literally.
Japan Post Bank Co, LTD is a wholly owned subsidiary of Japan Post Holdings, LTD. It began operations as a bank on Sep. 1, 2006 and offers more than just standard savings accounts. Japan Post Bank provides a variety of banking services including housing loans, card loans, credit cards and retirement planning. They also offer investment products designed for low cost, long-term holding, encouraging people to save for their future.
Is the banking industry worth getting into with so much competition already out there? Let’s delve into the numbers and find out.
After tax net income for Japan Post Bank for the fiscal year ending March 31, 2012 was 334,850 million yen. That’s the equivalent of $4.181 billion in U.S. dollars. That’s quite a hefty sum after being in operation for less than six years.
Dr. Sheldon Garon, professor of History and East Asian Studies at
, stated that such additional services
could increase revenue during a time when the Postal Service is facing
declining mail volume. Such “creative” ideas could be a way for the
organization to experience greater revenues. Princeton University
Japan Post banked on their customer loyalty to gain market share in the financial services industry, and that gamble paid off. Do you think the Post Office would have similar success if it did the same?