Shizuoka Bank Leads Regional Revival in Japan

By Daniel de Bomford and Arthur Menkes

Shizuoka Prefecture, which spreads out at the foot of Mt. Fuji—a UNESCO World Cultural Heritage site—is blessed with a rich natural environment facing the Pacific Ocean and a mild climate, located almost in the center of Japan. Since ancient times, it has prospered as a key hub for east-west transportation, giving rise to diverse industries and technologies.

The spirit of craftsmanship, handed down through generations, is deeply rooted in the region. Even today, many local companies that support Japan—such as those in the precision machinery, automobile parts, and medical device industries—continue to grow. In addition, traditional industries like tea and wasabi have evolved into forms of sustainable agriculture and tourism, sharing a lifestyle that coexists with nature with the world.

This “coexistence of nature and industry” is Shizuoka’s strength. Supported by its rich natural environment, the spirit of challenge symbolized by the “Yaramaika spirit” continues to underpin and develop the corporate culture of the region.

However, like almost all of Japan’s regions, Shizuoka is facing the challenges of population decline and market contraction due to the aging population and the migration of young people to the Tokyo metropolitan area and other major cities.

Without an intervention, the diverse markets in Shizuoka face an existential threat.  While the government is working on solutions, private-sector organizations are stepping up to safeguard the region's future.

Rooted in Shizuoka, Reaching the World

For regional banks like Shizuoka Bank, prosperity is intrinsically tied to the local area. The organization traces its roots back to 1877, with the foundation of the 35^th National Bank of Shizuoka. The present Shizuoka Bank was established in 1943 through the merger of Shizuoka Sanjugo Bank and Enshu Bank. It has never been afraid of bold strategy, opening the first regional bank overseas representative office in Los Angeles in 1982 as its clients expanded to the West Coast of the United States. President Minoru Yagi says it continues to be guided by its core philosophy of going where its customers go, which distinguishes it from Tokyo-based megabanks.

The organization is taking a leading role in facilitating the revitalization of the region by fostering a thriving business environment through forming partnerships with local companies and startups, investing in ventures and hosting industry events.

Mt. Fuji･Alps Alliance: A Regional Blueprint for Growth

At the core of its strategy are alliances. Mt. Fuji･Alps Alliance is a comprehensive business partnership among Shizuoka Bank, Yamanashi Chuo Bank and Hachijuni Bank, the leading banks in Shizuoka, Yamanashi, and Nagano Prefectures. “These three regions consistently rank among the most desirable places to relocate in Japan, yet they also share challenges such as population decline and business succession,” Yagi says.

The goal of Mt. Fuji･Alps Alliance is to align and pool resources to attract people, businesses, and investment from both Tokyo and overseas, particularly from Asia's growing markets. The alliance has set a common KPI for achieving a net social increase in population growth across three prefectures. “In June, the three banks jointly launched a relocation support project, which includes relocation loans, talent matching services that connect job seekers and potential migrants from Tokyo with local companies, and other support systems,” Yagi says.

There is a particular focus on supporting startups, which Shizuoka Bank is particularly experienced in. The company opened a representative facility in Silicon Valley in 2021 to strengthen ties with VCs and startups. This boots-on-the-ground experience aligns with its mission to connect regional companies with international innovation ecosystems.

“Looking ahead, we aim to globally promote Mt. Fuji-Alps brand to attract inbound relocation, investment, and business,” Yagi says.

Tea plantations

Financing Innovation and Green Transformation

Nearly 40 percent of Shizuoka’s GDP is generated by manufacturing, with as much as a quarter from automotive and transport, and it is home to giants Suzuki Motor Corp. and Yamaha Corp. With digital transformation (DX) and green initiatives, the region is undergoing a monumental shift.

Transport is moving to electrification as EVs become more prominent. The Ministry of Economy, Trade and Industry predicts that around half of internal combustion engine parts may be replaced. “Supporting local companies as they navigate this transformation is a key mission of our bank,” Yagi says.

In this environment, particular emphasis is placed on supporting startups, and Shizuoka Bank has extensive experience in this field. In 2021, it became the first regional bank to establish a representative office in Silicon Valley, aiming to strengthen relationships with venture capitalists and startups. These local activities align with the mission of connecting regional companies with startups and building an innovation ecosystem.

One such initiative is "TECH BEAT Shizuoka." This open innovation program brings together local companies that have preserved traditional industries and domestic and international startups with cutting-edge technologies in Shizuoka, providing opportunities for interaction and co-creation. The program aims to revitalize industries within Shizuoka Prefecture and foster new business creation. Now in its seventh year, "TECH BEAT Shizuoka 2025" featured 178 participating startups and attracted over 10,000 visitors, making it the largest event to date.

The bank provides venture debt and equity investments to auto-related and industrial-tech startups, with over ¥30 billion invested in 39 VC funds, which indirectly back approximately 1,100 startups, as well as ¥30 billion in growth loans to around 130 firms.

These initiatives are helping drive transformation beyond automotive and into other traditional industries such as construction and agriculture. Another key area of focus is decarbonization, green technology and ESG-aligned manufacturing. The bank is working towards a total of ¥2 trillion in sustainable finance, with ¥1 trillion of that as environmental finance by fiscal year 2030. At the same time, it has provided Shizuoka GX Support, a free tool for local companies to calculate greenhouse gas emissions.

The bank leverages emissions data to support customer decarbonization and works with regional and local governments. It acts as a regional hub, linking firms, governments, financial institutions, and other partners to build a region that balances decarbonization with business needs.

Building Bridges Across Asia and Beyond

The bank is also looking outward to international markets, particularly in Asia, to mitigate the dual effects of population decline, a shrinking domestic market and a shrinking labor pool.

Initially, the bank supported Shizuoka-based manufacturers looking to expand into Asia, particularly in Thailand and Indonesia. Yagi says that the next step is to tap into the growth of these markets themselves. It has a comprehensive alliance with BDO Unibank, the largest bank in the Philippines. The initiative aims to address the social challenges facing both countries, such as the shrinking labor pool in Japan and high youth unemployment in the Philippines. Typically, workers relocating to Japan faced high initial costs and often were forced to turn to high-interest loans. Through this partnership, the bank is helping Filipino workers secure fair financing before coming to Japan. At the same time, it is working with National University, Philippines, to offer language training, financial literacy education and internship programs in Shizuoka. The bank has expanded its alliance with Thailand’s Kasikornbank into a comprehensive partnership and looks to scale this model with other banks in the region.

Yagi says Shizuoka Bank’s future lies in balancing innovation with trust, principles that have guided it for more than 80 years. From revitalizing local communities through the Mt. Fuji･Alps Alliance to fostering startups and advancing green finance, the bank demonstrates how regional institutions can shape Japan’s economic renewal. Its overseas partnerships, especially in Asia, highlight a forward-looking approach rooted in shared prosperity. In Yagi’s words, Shizuoka Bank remains “a bank where trust and innovation coexist,” a philosophy that continues to define its role in both regional revitalization and global connection.

To hear more from President Minoru Yagi of Shizuoka Financial Group, check out this interview with him.