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- Summary of The Annual Bulletin
- The Social Contribution Activities of Personal Finance Companies and Their Future
The Social Contribution Activities of Personal Finance Companies and Their
Future
－Considerations from the Experience
of the Great East Japan Earthquake and Tsunami－
Takahiro Saeki
ACOM.CO., LTD
The Great East Japan Earthquake and Tsunami provided an opportunity for the
whole personal finance industry and its constituent companies to consider introducing social
contribution activities via their principle businesses. Examining cases inside and outside Japan, this
paper indicates the possibility of microcredit as part of the social contribution activities of personal
finance companies via their business activities.
In Europe and the United States, there exist social finance institutions that provide loans for socially
significant activities and microcredit organizations to support the financially weak as well as those
who intend to start their own business to get out of their jobless status. They have vigorously expanded
their loan activities to contribute to sustainable social development. In Japan, too, nonprofit banks
for citizens (NPO banks) and consumer cooperative unions (co-ops) have undertaken microcredit services.
However, excluding some co-ops, their business expansion is not at all sustainable.
Where does this difference come from? It originates from the difference of recognition for the
significance and role for society of social finance and microcredit by stakeholders such as governments
and consumers. In Europe and the United States, measures against poverty and unemployment are among the
most important issues and the activities of social finance institutions and microcredit organizations
are inevitably acknowledged as part of their Corporate Social Responsibility (CSR). In contrast, in
Japan, the significance and social role of personal finance are not understood correctly by
stakeholders. They are even critical of those activities.
Under such circumstances with a lack of the correct understanding of the personal finance industry, it
is difficult for personal finance companies to contribute to society by developing their microcredit
services. What is now required from the industry and individual companies is to enlighten the
stakeholders so that they can understand the significance and social role of the industry and to
establish a relationship based on mutual trust with them by making continuous efforts to respond to
their expectations.
