[Company analysis] Credit Saison Co., Ltd. (クレディセゾン)

「Credit Saison Co., Ltd. (クレディセゾン)」is the largest credit card company in Japan. Japan is still a cash-based society, so the credit card market is not so well developed. Nevertheless, 「Credit Saison」has expanded its scale through policies with "No annual fee", "Unsigned payment", "Permanent points". The number of consolidated employees is approximately 3,726.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Credit Saison Co., Ltd.
Company name (Japanese)	クレディセゾン
Date of establishment	Tuesday, May 1, 1951
Headquarters location	〒170-6073 東京都豊島区東池袋3-1-1
Capital	75,929
Consolidated sales	304,855
Consolidated operating profit	52,233
Consolidated total assets	3,212,465
Consolidated capital	491,741
Capital adequacy ratio	15.3%
Consolidated number of employees	3,726

 

 

 

2. Summary and Features

 
「Midoriya(緑屋)」, which was a monthly installment department store, became the current「Credit Saison」by changing its business format after being transferred to the「Saison Group」. At that time, they issued the Saison Card, in order to integrated various type of cards that issued by Seibu Department Store and Seibu Group. In 1988, they started a partnership with "VISA" and "Master Card". In addition, they began to expand their business, so now handle the rental business, life insurance, non-life insurance, credit guarantee business.

 

「The Saison Group」, which was a huge distribution and real estate group, was dismantled in 2001. However, as mentioned above, 「Credit Saison」has issued cards in cooperation with other Saison Group companies, so it can be said that this company connects the former Saison Group companies.  

Today,「Credit Saison」become a representative of the Japanese credit card industry, but in reality, they were a latecomer to the Japanese credit card market. However, they started the industry's first epoch-making services such as "No annual fee", "Unsigned payment", "Permanent points". With this differentiated services,「Credit Saison」were abled to acheived the top market share in Japanese credit card industry. Currently, they have a customer base of approximately 37 million people. And by applying the know-how that they have accumulated in the card business to other business,「Credit Saison」is expanding its business area into the Internet business, rental business, and financial business.


According to the credit card market research conducted by「Yano Research Institute(矢野経済研究所)」, the size of the Japanese credit card market in fiscal 2017 was approximately 58 trillion yen. However, it is expected that the transaction amount of contactless payments, such as payments using smartphones, will increase sharply in the future. And the credit card market is also expected to expand to about 100 trillion yen by 2023. However, since 2019, electronic payment services such as "PayPay" and "Line Pay" are growing rapidly. Therefore, it is expected that competition will be harsh in the near future.

 

 

 

3. Major Business

 

■ Card business
As a core business of「Credit Saison」, they provide cardless payment services for credit cards, prepaid cards, and mobile payments.

■ Financial business
They provide diversification of revenue sources and financial services based on the sales power accumulated in the card business.

■ Solution business
They are focusing on making cashless inter-company payments, where payments such as cash and remittance are the mainstream, mainly for corporate customers.

■ Internet content business

They are collaborating with venture companies that possess new technology and conducting research and development of advanced technology.

■ Global Asia Business
Utilizing the know-how accumulated in Japan, they are promoting the retail financial business of Gaguku in Asia, and are promoting the construction of a medium- to long-term overseas strategic base.

■ Investment Asset management business
In cooperation with affiliates「Saison Asset Management Co., Ltd.」and「Monex-Saison-Vanguard Investment Partners, Inc.」, they provide operational services.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		278,944	292,183	304,855
Consolidated operating profit		31,213	40,771	52,233
Consolidated total assets		2,720,051	2,940,027	3,212,465
Consolidated net assets		446,882	480,669	491,741
Breakdown of sales	Credit service business	211,633	220,320	228,518
	Lease related business	13,278	12,885	12,586
	Financial related business	31,074	35,417	39,231
	Real estate related business	13,648	15,472	18,113
	Entertainment related business	10,396	9,288	8,761
	Adjustments	-1,086	-1,200	-2,357