Fueling Aichi’s Next Industrial Era

By Daniel de Bomford

Aichi is the heart of Japan’s manufacturing engine, roaring with world-class power, built on decades of innovation. At its core, the Bank of Nagoya hums, fueling momentum, fine-tuning transformation and ensuring that every gear of the region’s industrial machine runs smoothly towards a new horizon.

As home to one of the largest concentrations of automotive and manufacturing firms in the country, innovation and monozukuri, Japanese craftsmanship, have shaped its identity. Now, as global industries pivot towards carbon neutrality and digital transformation, as Japan’s economic backdrop shifts as it returns to inflation, Aichi is ready to power Japan’s manufacturing dominance.

For the Bank of Nagoya, headquartered in the heart of this industrial powerhouse, supporting that transformation is both a business mission and a civic responsibility. President Ichiro Fujiwara views the economic shift as a major turning point for both the bank and its customers. “For our clients as well, this is a time to pursue bold investments and take advantage of the financial opportunities that come with change,” he says. “We are excited to support them in this new chapter.”

Driving Aichi’s Industrial Core

The roots of Aichi’s prosperity are deeply tied to its automotive ecosystem. From global automakers to precision parts suppliers, the region’s industrial network drives Japan’s export competitiveness and industry leadership.

Fujiwara sees this industrial DNA as a significant advantage for Aichi. “Historically, this area centered around the automotive industry has always been export-oriented and globally connected,” he says. “Consequently, SMEs in our region have deeper relationships with overseas markets than perhaps anywhere else in Japan.”

To strengthen this foundation, the Bank of Nagoya has embedded itself in the region’s manufacturing community, collaborating with everyone from start-ups to SMEs, and even industry titans. Through its Automobile Supply Chain Support office, the bank provides financing, advisory and information-sharing to suppliers adapting to electrification and automation. Furthermore, its alliance with seven other financial regional institutions in the area, such as Shizuoka, Yokohama and Hiroshima, extends this support nationwide, aiding Japan’s automotive value chain during a critical, once-in-a-century transition.

Oasis 21

Transforming Banking: From Lending to Solutions

When Fujiwara took office eight years ago, he saw a need to reinvent what a regional bank could be. His vision was a model that goes beyond traditional lending to offer comprehensive, solution-based services for small and medium enterprises SMEs.

“For a long time, Japan operated under an ultra-low or even negative interest rate environment,” he says. This created a challenging business environment where deflation fostered a climate that made it difficult for innovation and operational improvements to translate into financial returns.

When cost-cutting was the dominant strategy, many regional banks chose to downsize by closing branches and reducing headcounts. “We saw an opportunity to go beyond lending and shift to a solution-based business model—one where we support our clients with advisory services, business matching, succession planning and other forms of added value,” Fujiwara says. The bank’s fee and commission income, a key indicator of non-lending growth, has increased for eleven consecutive years, validating the bold strategy.

Championing the Automotive Industry’s Transformation

As global supply chains adapt to new technologies, trade policies and decarbonization requirements, the Bank of Nagoya prioritizes supporting its core client base, the manufacturers driving that change.

Bank of Nagoya has listened closely to its clients through impact surveys to understand the effects of shifting export conditions on both clients and the industry. Its advisory team assists clients in exploring diversification strategies and “KAIZEN” activities, ensuring that Aichi’s manufacturing edge continues to thrive on the global stage.

Fujiwara emphasizes the importance of maintaining the human touch in client relationships, even amid digitization. “A single vehicle is made from approximately 30,000 individual parts,” he says, “Coordinating the production of so many components requires collaboration, innovation, and mutual understanding that can’t always be captured by digital systems or AI alone.”

Human Capital and Digital Transformation

The bank’s Human Capital Strategy reflects the importance of a human touch and seeks to cultivate a diverse, motivated workforce equipped to meet the challenges of a digital age.

Digital training programs are being expanded, with staff encouraged to earn national IT Passport certifications, alongside significant increases in employee cross-career experience and engagement.

The Nagoya Bank App and web-based services allow clients to manage accounts, investments and handle administrative requests remotely, which frees branch employees to focus on personalized consulting. “From an operational standpoint, leveraging DX is essential for streamlining workflows, reducing time-intensive tasks, and boosting the overall performance of the organization,” Fujiwara says. The bank can also leverage customer data to respond in real time, delivering financial services faster and more efficiently.

Fujiwara is clear that technology will not replace the bank’s human core. “While digital transformation (DX) is crucial, I also believe that face-to-face communication, the human element, remains equally important,” he says. “While we will absolutely continue to deepen our digital capabilities, we will also remain firmly committed to traditional face-to-face interactions.”

STATION Ai

Supporting Business Continuity and Next-Generation Growth

Beyond financial services, the Bank of Nagoya is also addressing one of the most urgent challenges facing Japan’s regional economy: business succession. As many small and medium-sized enterprises confront aging ownership and leadership transitions, the bank established Nagoya Capital Partners, its investment-focused subsidiary, to help ensure these companies can continue to operate and grow.

Fujiwara says that banks have historically been limited to supporting businesses through lending; however, with its investment arm, it is able to provide equity-based support. “We can take a direct role in helping businesses through investments, including sending experienced personnel to serve as directors or advisors,” he says.

Nagoya Capital Partners launched a ¥4 billion Business Succession Fund in 2020 and has already invested in companies across the region. The aim is not simply to prevent closures, but to preserve identity and strengthen competitiveness. In some cases, the subsidiary is even helping businesses expand, pursuing strategic roll-ups and preparing for possible public listings.

Toward 2030: Growth With Purpose

This strategy has produced tangible results. Core business profits are up nearly ¥8 billion in fiscal 2024. While not being the largest bank in the region, it is among the top performers. Fujiwara’s aspiration is for Bank of Nagoya to be the most trusted and valued financial institution in the region, while leading in profitability.

“We aim to be a leading regional bank—not just in name, but in substance. One that genuinely contributes to the economic development of this region.”

To hear more from President Ichiro Fujiwara of The Bank of Nagoya, check out this interview with him.