#Japan #Hitachi #Kumamoto #PointInfinity #Higo Bank

Hitachi Enhances Higo Bank's Point Management with PointInfinity

In a significant move to boost customer engagement and enhance the regional economy, Hitachi has developed and implemented a point management foundation named PointInfinity for Higo Bank's "Higin Point Service". Announced on September 9, this collaboration marks a pivotal step in providing a more dynamic and interactive banking experience in Kumamoto Prefecture.

Higo Bank, a local financial institution deeply rooted in the community, is facing unique challenges due to demographic shifts like a declining youth population and increased competition from online banking. These factors necessitated the need for differentiated services to attract and retain personal banking customers. In response, Higo Bank decided to revamp its traditional step service, which provided benefits based on transaction types, and introduce a modern service designed to enhance customer touchpoints through daily financial transactions.

Slated to launch in February 2026, the new service will automatically award distinct coins to customers based on their account transactions. These coins can then be exchanged for local points, common points, or special incentives from local businesses and organizations. This approach ensures that customers have seamless access to local services through their everyday banking activities, significantly contributing to the revitalization of the local economy. In just four months since launching, Higo Bank has reportedly seen its membership grow to an impressive 230,000 individuals.

The integration of Hitachi’s PointInfinity system plays a crucial role in this transition. It provides comprehensive management of the coins earned and the step services, allowing for flexible additions of new exchange options and expanded promotional campaigns. Hitachi is committed to supporting companies in advancing their digital services while fostering value co-creation with local communities.

Background of Higo Bank

Higo Bank operates under the belief that the presence of localized financial institutions plays a pivotal role in shaping the future of communities. They aim to be a hub that connects local residents and businesses while creating opportunities for the younger generation to thrive. In March 2024, they plan to launch the Higo Bank app, subsequently introducing the regional payment app “Kumamon! Pay”. These initiatives reflect Higo Bank's commitment to improving customer convenience and stimulating the local economy.

As part of their forward-thinking approach, Higo Bank has fully renovated its traditional step service, known as the "Waku Waku Club®". Previously, customers could enjoy tiered benefits based on transaction characteristics, but now, they can accumulate coins that are redeemable for a variety of rewards, enhancing the cycle of consumption within the community while simultaneously returning value to the customers.

When selecting the foundation for their new service, Higo Bank conducted a thorough assessment based on functionality, cost, timeline, performance, security, and development capability. Hitachi’s PointInfinity was highly rated for its extensive functionality, successful implementation record, and adaptability. Furthermore, the seamless integration with Hitachi’s core banking systems greatly influenced their decision to adopt PointInfinity. Moving forward, Hitachi intends to enhance user convenience through ongoing support of this system.

Impact of the Implementation

1. Convenient Exchange System: The ability to convert coins awarded for transactions such as app registrations and account openings into local points and tickets for regional events has significantly improved user convenience.
2. Enhanced Customer Experience: By providing a new customer experience that transcends traditional perks like interest rate discounts, the new service has gained over 230,000 members within just four months of its launch.
3. Robust Integration with Security: The PointInfinity system has been designed to safely integrate with existing smartphone applications and other core and information systems, maintaining the high levels of performance and security critical to financial services.
4. Unified Management & Flexibility: With PointInfinity, Higo Bank can manage coins and step services in a unified manner while being flexible in adding new exchange options, thereby improving customer touchpoints and fostering regional collaboration.

Future Prospects

Miyuki Ogata, a representative from the marketing planning division at Higo Bank, expressed her appreciation for Hitachi’s swift responses during the requirements organization phase for the seamless integration with the Higo Bank app. She praised their ability to present alternative solutions where challenges arose and highlighted the trust established by Hitachi’s track record. Looking ahead, Higo Bank aims to enhance customer interactions through the "Higin Point Service", while supporting local businesses and organizations, thus creating new customer value beyond mere convenience.

For more information on the Higin Point Service, visit here.

To learn about PointInfinity, click here.

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All company and product names mentioned are trademarks or registered trademarks of their respective companies.

Contact Information

Hitachi, Ltd., Financial System Sales Division [Contact: Matsuura]
1-6-1 Marunouchi, Chiyoda-ku, Tokyo 100-8220, Japan
Contact Form: Hitachi Finance Inquiry