Japan Net Bank Case Analysis
HKU178
op y
01/24/02
Japan Net Bank: Japan 's First Internet-only Bank
Yoshiyuki Miyai had a vision. He wanted to establish a completely new standard of banking in Japan – that of Internet-only banking. As president of Japan Net Bank (JNB), the first
Japanese online bank with no physical branches, Miyai emphasised that customer satisfaction should be the focus of JNB 's business – his customers should enjoy convenient access to accounts, competitive rates, customisation and secure transmission of information over the
Web. To bring out the best services, he saw to it that JNB was run with low operation costs, a flat management structure, flexible computer systems and a small workforce – all drastically different approaches from those adopted by traditional banks.
tC
JNB already had 130,000 accounts in April 2001, merely six months after it opened shop. But in order for it to maintain a sustainable competitive position in the long-term, Miyai needed to tackle several important issues. How could the Company maintain the interest and support of its large shareholders? What advantage could be gained from the established customer bases and marketing channels of its alliances? In other words, how could the company best manage its alliances? Furthermore, how should the Company design a scalable information technology infrastructure capable of providing performance on demand but without overinvesting?
Company Background
No
In July 1999 Sakura Bank, a major Japanese bank, and electronics giant Fujitsu announced their plan to create an Internet-only bank. After over a year of preparation, including getting other companies to invest in the venture, The Japan Net Bank Ltd. was established on 26
September, 2000, with capital of ¥20 billion (US$167 million).1 JNB began operation on 12
October, 2000, after receiving a Banking Licence from the government.
The senior management of JNB consisted of five directors, including the president,
op y
01/24/02
Japan Net Bank: Japan 's First Internet-only Bank
Yoshiyuki Miyai had a vision. He wanted to establish a completely new standard of banking in Japan – that of Internet-only banking. As president of Japan Net Bank (JNB), the first
Japanese online bank with no physical branches, Miyai emphasised that customer satisfaction should be the focus of JNB 's business – his customers should enjoy convenient access to accounts, competitive rates, customisation and secure transmission of information over the
Web. To bring out the best services, he saw to it that JNB was run with low operation costs, a flat management structure, flexible computer systems and a small workforce – all drastically different approaches from those adopted by traditional banks.
tC
JNB already had 130,000 accounts in April 2001, merely six months after it opened shop. But in order for it to maintain a sustainable competitive position in the long-term, Miyai needed to tackle several important issues. How could the Company maintain the interest and support of its large shareholders? What advantage could be gained from the established customer bases and marketing channels of its alliances? In other words, how could the company best manage its alliances? Furthermore, how should the Company design a scalable information technology infrastructure capable of providing performance on demand but without overinvesting?
Company Background
No
In July 1999 Sakura Bank, a major Japanese bank, and electronics giant Fujitsu announced their plan to create an Internet-only bank. After over a year of preparation, including getting other companies to invest in the venture, The Japan Net Bank Ltd. was established on 26
September, 2000, with capital of ¥20 billion (US$167 million).1 JNB began operation on 12
October, 2000, after receiving a Banking Licence from the government.
The senior management of JNB consisted of five directors, including the president,