Tokyo – The ITOCHU Seven Bank Alliance marks a new step in retail finance integration across Japan’s supermarket and convenience store landscape. ITOCHU Corporation has formed a capital and business alliance with Seven Bank, which took a 16.35 percent stake in an allotment of shares a third party, and intends to increase this amount to approximately 20 percent by further purchases.
This agreement raises ITOCHU to a significant shareholder of Seven bank which has over 28,000 ATM in Japan and abroad. The network that Seven Bank runs extends to the convenience stores, shopping centers, tourist destinations, airports, and train stations. This relocation is driven by the fact that financial services in retail settings are growing in scale and that ATMs are becoming more multifunctional than they were initially, as they can now offer much more than the ability to withdraw and deposit funds.
Growth via FamilyMart Stores
A key focus of the ITOCHU Seven Bank Alliance is the integration of services at FamilyMart. ITOCHU has approximately 16,300 FamilyMart locations around the country, which offers a good platform to launch new financial services. The partnership will enable the customers to use the ATM platform of Seven Bank in addition to FamilyMart currently existing financial service offered in FamiPay payment application and Famima Card credit card.
FamilyMart already offers loan applications and Buy Now Pay Later through its subsidiary Famima Digital One. As Seven Bank has ATM facets, this integration will increase customer touchpoints by connecting digital payments to offline experiences at stores.
New Retail Finance Models
ITOCHU and Seven Bank are in need of developing new models of business by integrating financial services and retail convenience. The Business Partnership enhances the downstream strategy of ITOCHU, which is adding value by providing services to consumers. The ATM platform of Seven Bank and the financial subsidiaries of ITOCHU, such as Pocket Card Co., will be in a place to provide customers with increased rewards, promotion, and credit options.
The contract also indicates the way in which supermarket and convenience retailing in Japan is keeping up with consumer demand of integrated services. The broader retail experience is entering into the digital payments, point rewards and the ease of access to loans. This establishment makes the FamilyMart stores, not only food and everyday items, but also money transfer centers.
Transaction Details
At a price of 268 yen per share, ITOCHU will be issued 191.7 million shares of Seven Bank under the share subscription and the issue will exceed 51 billion yen. Further acquisitions by up to 42.7 million shares are to be made subject to the approval of the regulations and the market. By the time it is completed, the Seven Bank will be an equity based affiliate to ITOCHU, which will reaffirm its role in the wider financial services strategy of the group.
Prognosis of Supermarket Industry
For the supermarket and convenience sector, the ITOCHU Seven Bank Alliance signals further convergence between physical retail and digital finance. Customers are becoming more demanding on one-stop offers, be it the groceries or the payment in the same retail environment. With this trend, ITOCHU and Seven Bank are keeping up by integrating superior financial service in FamilyMart, hence, enhancing customer loyalty.
The ITOCHU Seven Bank Alliance underscores the shift in retail grocery trends, as financial services become a defining part of the store experience.
