Nomura Securities Co., Ltd., a wholly owned subsidiary of Nomura Holdings, Inc., announced on August 26, 2019 that it had signed a memorandum of understanding (MOU) with San-in Godo Bank, Ltd. and its wholly owned subsidiary Gogin Securities Co., Ltd., to explore a comprehensive business alliance aimed at providing financial intermediary services. In accordance with this announcement, the three companies signed the final agreement today.
The alliance is subject to regulatory approval, respective company- related approvals and the signing of other necessary agreements. The three companies plan to start operations under the alliance in September 2020.
Changes since the signing of the MOU
After signing the MOU, the three companies set up a committee to discuss the implementation of the proposed alliance. As a result, the companies decided that providing uniform services across the San-in region was critical in order to maximize the results of the alliance and ensure efficient operations. This led to the decision to include Nomura Securities’ Yonago branch office (including Tottori sales office) under the alliance framework, in addition to the originally agreed Matsue branch office.
Overview of the alliance
The client assets department at San-in Godo Bank, Gogin Securities, as well as Nomura Securities’ Matsue and Yonago branch offices will merge their functions to form a new department at San-in Godo Bank, tentatively named the Asset Consulting Department. Operations under the alliance will be mainly conducted through this new department.
The new Asset Consulting Department will operate from three sales branches in the cities of Matsue, Yonago and Tottori and collaborate with San- in Godo Bank’s branch offices to provide high value-added services to clients. With the support of the new department, the three companies plan to leverage San-in Godo Bank’s extensive branch office network to help clients build their assets.
In addition, to help salaried employees prepare for the demands of a longer life, the companies will provide preferential tax schemes such as NISA and iDeco, as well as bonds, investment trusts, and other accumulation-type products. In so doing, the three companies aim to raise their assets under management from the current approximate total of 500 billion yen to 800 billion yen in 5 years.
To contribute to a better quality of life for their clients and help invigorate regional economies, the companies plan to expand the scope of the alliance from financial intermediary services to also include corporate and salaried employees businesses.
Employees from Nomura Securities will be seconded to San-in Godo Bank to collaborate on various businesses under the alliance. They will also share Nomura’s knowledge and expertise and the wealth of information the firm has to support San-in Godo Bank’s sales activities.
