DX Strategy ｜Orient Corporation

Orico's Digital Transformation Aspiration

Looking back over the past decade, the evolution of technology has led to the emergence of many digital services, and our daily lives have changed dramatically. The recent emergence of generative AI has also been an epoch-making event.
Considering the next decade, there is no doubt that technology will continue to advance even further. For companies in Japan, where the population is now in a phase of decline, it is becoming even more challenging to secure human resources, so it can be said that the essential condition for maintaining and enhancing competitiveness is to create and evolve an effective and efficient business structure that does not rely on people, utilizing digital tools and data that incorporate technological advances.

We are promoting company-wide initiatives based on its DX Strategy, which is composed of the following three strategic axis.

Strategy 1: Create new business models utilizing digital technology
Strategy 2: Implement DX in existing business models
Strategy 3: Develop DX human resources and foster a DX culture

To give a concrete example, concerning Strategy 1, we are utilizing the investment function of the Orico Digital Fund and promoting collaboration with startups with excellent technologies and business models through open innovation.
Regarding Strategy 2, we have introduced and started utilizing Generative AI (Azure OpenAI) across the company to achieve innovation and enhance productivity. In terms of utilizing data as one aspect of our market-in sales approach, we are providing data analysis services to meet the needs of our customers, including member merchants. We are having them utilize this data in their business strategies. At the same time, we are also working to strengthen our cyber security management structure in response to the growing sophistication of cyber attacks and other threats as we actively utilize data.
Under Strategy 3, we have prepared a “DX Promotion Personnel Development Program” for the most critical human resource development, and more than 3,000 executives and employees have already completed the beginner level. Currently, executives and employees who want to acquire more knowledge and skills are taking intermediate and advanced programs.

As we advance, we will continue to create new value and deliver it to customers by further promoting the utilization of digital and data to achieve both business expansion and the resolution of social issues.

Managing Executive Officer, Head of Digital Marketing Group
Shinya Uda

Orico DX Vision

By leveledging digital technologies, we aim to be an innovative, leading company that contributes to solving various social issues through offering customer-centric financial services

DX Strategy

Our DX strategy consists of the following three strategic axes, and we are developing initiatives to transform ourselves into a company that contributes to solving environmental and social issues through our business in accordance with each strategic axis. To promote the DX strategy, we have formed the DX Promotion Headquarters, headed by the President and Director, to create and materialize ideas through vigorous discussions on measures to promote DX across the entire company.

Strategy 1:Create new business models utilizing digital technology

We are working to make effective use of digital technology and data. Specifically, we will create new business models by combining our know-how and expertise in financial services with the digital technologies of other companies, and we will also create new business models based on a wealth of data, including settlement and credit data, by combining our own anonymously processed data with open data and using AI for analyses. We are also working to create a data economy by providing solutions that support the sales strategies and promotions of partner companies.

Strategy 2:Implement DX in existing business models

In order to achieve structural reform of business processes, we are working to improve the efficiency and speed of operations by utilizing digital technology. In particular, we will further promote BPR from the perspective of overall optimization by taking a bird's-eye view of the "end-to-end" process from the customer's application process to the completion of the transaction contract and business operations. Through the digitization of business operations, we have achieved a CO2 reduction of 124 tons in FY2022, far exceeding our plan.

Strategy 3:Develop DX human resources and foster a DX culture

In promoting DX, we believe it is important to develop human resources who are passionate about providing value to customers through the use of digital technology, and we have developed our own DX human resource development program to improve the DX knowledge and skills of our employees. In addition, we have launched DX Place, in which all group employees are encouraged to submit new business ideas and ideas for operational reform based on their own awareness of the issues they face, and we will continue our efforts to foster and establish a DX culture throughout our group.

DX Promotion Structure

We have established the DX Promotion Headquarters, headed by the President and Director, to oversee all divisions and groups and promote DX strategies in a cross-sectional manner. The DX Promotion Headquarters chaired by the general manager and attended by the general managers of each division and group, holds regular DX Promotion Meetings, where measures for promoting DX across the entire company are discussed and deliberated through vigorous debate.

DX Initiatives

Initiative 1:Creation of new services through collaboration with cutting-edge companies in different industries

We are working to create new business models by combining our know-how and expertise in financial services with the digital technologies of other companies. In order to realize many such collaborative projects, we have established the "Orico Digital Fund" as a function to invest in venture companies, and are working to discover and create collaborative projects, including investments.

Initiative 2:Conversion of routine operations at the head office to RPA

In our medium-term management plan, we set a goal to train all employees as DX promoters with basic digital technology knowledge and skills, and by March 2023, the first year of the plan, more than 3,000 employees, almost all of whom were certified. In the future, we will work to further improve and establish the digital knowledge and skills of our employees, as well as develop and secure human resources with specialized skills in digital technology and data.

Initiative 3:Development of DX human resources

In our medium-term management plan, we set a goal to train all employees as DX promoters with basic digital technology knowledge and skills, and by March 2023, the first year of the plan, more than 3,000 employees, almost all of whom were certified. In the future, we will work to further improve and establish the digital knowledge and skills of our employees, as well as develop and secure human resources with specialized skills in digital technology and data.

Initiative 4:Acquisition of DX Certification

In March 2023, we received certification as a "DX Certified Business Operator" from the Ministry of Economy, Trade and Industry (METI) in recognition of our formulation of DX strategies, establishment of a promotion system, and efforts to promote DX. DX Certification is a national certification system for businesses that are ready to transform their business through digitalization.

DX Promotion Indicators

We have set the DX Promotion Indicators as follows, which are to be achieved by the end of FY2024 (the end of the final year of the medium-term management plan) through the realization of new customer experiences and new work styles.

Strategy 1:Create new business models utilizing digital technology

Increase the number of e-ORICO registered users	by FY2024:users by a cumulative total of 1.5 million
Continuance intention indicator	by the end of FY2024:10% increase
Data analysis service support	total by FY2024:100 companies cumulative

Strategy 2:Implement DX in existing business models

Time created through digitization	by the end of FY2024:55,000 hours/month
Reduction of CO2 emissions through paperless operations	in FY2024 :800 tons(10 million A4-size sheets/year)

Strategy 3:Develop DX human resources and foster a DX culture

Number of DX human resources	by the end of FY2024:3,000 DX-promoting human resources