SBI ARUHI Business Model Canvas

SBI ARUHI leverages a robust franchise network, comprising around 80 franchisees nationwide. This diverse group includes insurance companies, judicial scrivener corporations, mobile phone retailers, and various housing-related businesses, acting as crucial partners.

This expansive network significantly amplifies SBI ARUHI's market presence, allowing them to connect with a broader customer base than their directly managed locations alone could reach.

In 2024, the continued expansion and strategic integration of these franchise partners are expected to drive a substantial portion of new customer acquisitions, particularly in regions where direct branches are less concentrated.

SBI ARUHI's key partnerships with the Japan Housing Finance Agency (JHFA) are central, particularly through the Flat 35 mortgage program. This collaboration ensures access to a stable, fixed-rate mortgage product highly valued by Japanese consumers. In fiscal year 2023, Flat 35 loans constituted a significant part of SBI ARUHI's portfolio, indicating sustained demand and reliance on this partnership for revenue generation.

The company also leverages a vast franchise network of approximately 80 diverse partners nationwide, including insurance firms and housing-related businesses. This network is crucial for expanding market reach and driving new customer acquisitions, especially in less concentrated geographical areas, with continued integration expected to boost growth in 2024.

Strategic alliances with other SBI Group entities, such as SBI Shinsei Bank and SBI Sumishin Net Bank, foster product innovation and service expansion. Furthermore, partnerships with financial institutions and trust banks are vital for loan securitization and efficient capital raising, enabling SBI ARUHI to manage its loan portfolio effectively and maintain liquidity.

SBI ARUHI is strategically expanding its product portfolio beyond the established Flat 35 program. This proactive approach includes the development of proprietary variable-rate mortgages and other specialized housing finance solutions designed to cater to a broader spectrum of borrower requirements.

A key element of this diversification strategy involves leveraging partnerships, notably with SBI Shinsei Bank. This collaboration allows SBI ARUHI to offer an expanded suite of housing loan options, enhancing its ability to meet varied customer needs in the competitive Japanese mortgage market.

SBI ARUHI's key activities are multifaceted, encompassing loan origination and brokering, particularly for the Flat 35 mortgage. This core function is supported by robust capital raising through loan securitization, transforming loan assets into tradable securities. The company also actively manages these loans as a servicer for various institutions, ensuring smooth operations and collections.

Diversification is another critical activity, with SBI ARUHI expanding its product offerings to include proprietary variable-rate mortgages and other specialized housing finance solutions, often in partnership with entities like SBI Shinsei Bank. This strategic move broadens their appeal to a wider customer base.

Furthermore, SBI ARUHI excels in channel management, cultivating a diverse network of online platforms, physical stores, and a growing franchise system to maximize customer accessibility and service efficiency. The company also engages in ancillary services, such as insurance agency operations and real estate-backed financing, including rent guarantees and leaseback arrangements, creating additional revenue streams.

SBI ARUHI's technology platform is the backbone of its online mortgage operations, enabling seamless application submission, efficient processing, and responsive customer support. This digital core is crucial for reaching a wider audience and streamlining the often complex mortgage journey.

In 2024, the company continued to invest in its digital infrastructure, aiming to enhance user experience and operational efficiency. This focus on technology allows SBI ARUHI to complement its existing branch network and offer a true multi-channel experience for its customers.

The platform's capabilities extend to providing customers with real-time updates on their application status, access to necessary documentation, and communication channels with loan officers, all contributing to greater transparency and convenience.

SBI ARUHI's key resources are robust financial backing, a skilled workforce, advanced technology, and an extensive distribution network. Its strong brand reputation, particularly its long-standing No. 1 position in the Flat 35 market, is a critical intangible asset driving customer trust and market demand. In fiscal year 2024, this translated into a solid loan balance, reflecting sustained market confidence.

SBI ARUHI prioritizes a seamless mortgage application experience by blending digital convenience with in-person support. This multi-channel strategy ensures customers can engage through online portals or visit physical branches, catering to diverse preferences and reducing potential roadblocks.

The company's focus on an efficient process translates into faster loan approvals, a critical factor for many homebuyers. By minimizing complexities and streamlining workflows, SBI ARUHI aims to significantly shorten the time from application to disbursement, enhancing customer satisfaction.

In 2024, the average mortgage approval time in Japan has seen a slight reduction, with many institutions aiming for under two weeks for straightforward applications, a benchmark SBI ARUHI actively strives to meet or beat. This efficiency directly impacts the speed of loan execution, allowing customers to proceed with their property purchases more promptly.

By simplifying the application journey and accelerating turnaround times, SBI ARUHI aims to build trust and loyalty. This streamlined approach not only benefits individual customers but also contributes to a more dynamic and responsive housing market.

SBI ARUHI's value proposition centers on delivering accessible and reliable housing finance, particularly through its flagship Flat 35 product, which offers long-term fixed-rate mortgages for payment predictability. They also provide a broad spectrum of their own variable-rate mortgages and act as an agent for other banks, ensuring customers can find perfectly aligned mortgage solutions. This diverse range caters to varying financial circumstances and long-term goals, reflecting the ongoing demand for tailored housing finance in Japan. In 2023, the Japanese housing loan market saw continued activity, with many borrowers seeking customized options beyond standard fixed-rate products.

SBI ARUHI focuses on nurturing enduring customer connections by guiding individuals through critical life events, starting with their first home purchase and extending to subsequent refinancing and evolving real estate requirements. This holistic approach cultivates deep-seated loyalty, driving both repeat business and valuable word-of-mouth referrals. For instance, in 2024, the company reported a significant increase in repeat customers leveraging their services for second property purchases, indicating successful long-term engagement.

SBI ARUHI nurtures customer relationships through a blend of personalized, in-person consultations and accessible digital channels. This hybrid approach, actively utilized by a significant portion of their customer base in 2024, ensures customers receive expert guidance tailored to their unique financial situations.

The company also focuses on building long-term loyalty by supporting customers through major life events, from initial home purchases to future refinancing needs, as evidenced by a notable increase in repeat business in 2024. Proactive communication regarding market trends, product updates, and loan status further solidifies trust.

SBI ARUHI actively incorporates customer feedback, utilizing its Customer Relations Office to drive service improvements and enhance overall satisfaction. This commitment to listening and adapting, reflected in positive satisfaction scores, underscores their dedication to fostering enduring client connections.

SBI ARUHI leverages an extensive franchise network as a crucial distribution channel for its mortgage services. This network includes strategic partnerships with insurance companies, judicial scrivener corporations, and various housing-related businesses.

These franchisees act as vital local touchpoints, offering customers accessible avenues to inquire about and secure mortgage solutions. In 2024, the company continued to expand its reach through these established relationships, aiming to capture a broader market share.

The strength of this model lies in its ability to tap into existing customer bases and trust networks built by its partners, facilitating easier customer acquisition and service delivery.

SBI ARUHI effectively utilizes a multi-channel strategy, blending digital accessibility with personal interaction. Their online platform is the cornerstone, facilitating initial inquiries and applications, a trend that saw continued growth in 2024 with increased digital submissions.

Physical branches offer a vital touchpoint for personalized advice, crucial for complex mortgage decisions, with investments in customer experience continuing through 2024.

The franchise network, encompassing partnerships with insurance and real estate entities, expands reach and leverages established trust, with growth in these relationships noted in 2024.

A dedicated corporate sales team fosters B2B relationships with developers and realtors, creating a strong referral engine with significant conversion rates observed in 2024 partnerships.

Bank agency agreements allow SBI ARUHI to offer a wider array of loan products, enhancing customer choice and leveraging partner bank networks for broader market access.

Existing homeowners looking to refinance represent a significant customer segment for SBI ARUHI. These individuals are typically seeking to improve their financial standing by securing lower interest rates, reducing their monthly mortgage payments, or accessing home equity for other needs. In 2024, the housing market continued to see a demand for refinancing as homeowners aimed to optimize their mortgage terms amidst fluctuating economic conditions.

This segment often prioritizes competitive interest rates and a streamlined application process. They are motivated by the potential for substantial savings over the life of their loan. For instance, even a small reduction in interest rate can translate to thousands of dollars in savings. Many are also interested in cash-out refinancing options to fund home improvements or consolidate higher-interest debts, demonstrating a clear need for flexible financial solutions.

SBI ARUHI serves individuals and families who prioritize financial predictability, particularly those attracted to fixed-rate mortgages like Japan's Flat 35. This segment values stability against interest rate changes, a sentiment amplified in 2024 by the Bank of Japan's continued low-interest rate environment.

Operating and maintaining a wide network of physical branches and digital platforms is a major expense for SBI ARUHI. This includes the costs associated with rent for their numerous physical locations, essential utilities to keep these spaces running, and the robust IT infrastructure needed to support both online services and in-branch operations. For instance, in 2024, the real estate market saw continued pressure on commercial rents, directly impacting the overhead for companies with extensive physical footprints.

Maintaining this infrastructure also involves ongoing IT upkeep, ensuring systems are secure and functional. Furthermore, SBI ARUHI incurs costs to support its network of franchisees, providing them with the necessary technology, operational guidance, and brand resources. This dual investment in owned and franchised locations is crucial for market reach but adds considerable complexity and cost to the network and infrastructure segment of their business model.

SBI ARUHI's cost structure is heavily influenced by personnel expenses, including salaries and benefits for its 466 employees as of March 2025. Significant outlays are also directed towards marketing and sales activities, with ¥10.5 billion spent in fiscal year 2023-24 alone, including franchisee commissions and real estate partner incentives.

Operational costs encompass maintaining a broad network of physical and digital branches, with increasing expenses due to market conditions affecting commercial rents in 2024. Funding costs are also critical, particularly interest expenses on borrowings and fees associated with loan securitization, which are sensitive to the dynamic interest rate environment.

Beyond securitizing Flat 35 loans, SBI ARUHI generates significant interest income from its own loan offerings. These proprietary products include variable-rate mortgages and real estate-backed loans, providing a crucial revenue diversification beyond just origination fees.

In fiscal year 2023, SBI ARUHI reported a total interest income of ¥166.1 billion, with a substantial portion stemming from these self-originated loan portfolios. This demonstrates the robustness of their lending operations as a core income generator.

SBI ARUHI's revenue streams are multifaceted, centering on loan origination fees from programs like Flat 35, which are significant one-time charges. The company also benefits from recurring servicing fees for managing existing loans, providing a stable income regardless of new loan volumes. Additionally, interest income from their proprietary loan portfolio, including variable-rate mortgages, diversifies their earnings.

Commissions from insurance sales, covering fire and life insurance tied to mortgages, add another layer of income. Furthermore, revenue is generated through various real estate services offered by subsidiaries, such as rent guarantee and leaseback arrangements, enhancing predictability. In fiscal year 2024, SBI ARUHI reported total revenue of ¥312.7 billion, with loan origination and servicing fees forming a substantial portion.