Integrated Report

The digital environment that surrounds us has seen significant advancements over the past decade or so, giving birth to many new services and fundamentally altering our lifestyle. Additionally, with the advent of cutting-edge technologies like generative AI, there are signs of changes in the way we work. We anticipate continued progress in various digital technologies, leading to the successive introduction of new products and services.
Conversely, as Japan's labor force declines, business models dependent on human labor are reaching their limits. For businesses, it is essential to effectively utilize constantly evolving digital technology and data to construct an effective and efficient operating structure and ensure ongoing sustainable growth. We believe that a transformation is required in which digital matters are left to the digital space and people focus on creating value in business that only humans can provide.

Our digital transformation 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 digital transformation 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.

We are working to make effective use of digital technology and data. Specifically, we are creating new business models by combining our know-how and expertise in financial services with the digital technologies of other companies. 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.

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 are further promoting 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. By going paperless through the digitization of our business operations, we have achieved reductions in CO2 of 124 tons in fiscal year 2022, far exceeding our plan.

In promoting DX, we have developed our own DX human resource development program to develop human resources who are passionate about providing value to customers through the use of digital technology. 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 were certified. 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.

We have created a DX Promotion Headquarters headed by our President and Director that overlooks all divisions and groups to establish systems that promote our digital transformation strategy throughout the entire company. With the President and Director acting as Chair, we hold regular DX promotion meetings with the participation of the various division and group heads. Through these meetings, we are advancing comprehensive discussions and considerations for company-wide, cross-sectional initiatives aimed at promoting DX.

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 startups, and are working to discover and create collaborative projects, including investments.

We are promoting the automation of more than 2,000 routine head office operations by making them more visible and prioritizing them. We are also promoting the development of human resources capable of developing RPA so that the person in charge of each task can proceed with the automation of that task on their own.