SBI ARUHI Corporation (7198) Stock Price

SBI Aruhi operates primarily in the housing finance business, mainly providing home loan lending. SBI Aruhi engages in mortgage bank operations that include loan origination (loan execution) and servicing (collection and management). Additionally, as a bank agent, it sells home loans from partner financial institutions on a commission basis.

SBI Aruhi's home loans use securitization as a funding method and operate as a fee-based business that minimizes credit risk and interest rate risk. Major products include "ARUHI Flat 35" and "ARUHI Super Flat," which have achieved the No. 1 market share for 15 consecutive years.

SBI Aruhi also offers variable-rate home loan products such as "ARUHI Home Loan (MG Guarantee)" and complementary home loan products like "ARUHI Flat Bridge Loan." Additionally, SBI Estate Finance handles real estate-backed loans, bridge loans for property sales, and home sale support loans.

SBI Aruhi operates approximately 100 locations nationwide and utilizes non-face-to-face channels to accommodate diverse customer needs and provide detailed service. SBI Aruhi also performs debt management and collection operations on behalf of the Japan Housing Finance Agency and trust banks.

SBI Aruhi's revenue is divided into three categories: origination-related revenue, recurring revenue, and asset and other revenue. Origination-related revenue comes from providing home loans and raising funds through loan securitization. Recurring revenue derives from debt management and collection operations and insurance-related business.

Asset and other revenue comes from interest income on loan receivables, interest income from real estate-backed loans, and proceeds from real estate sale-leaseback transactions. Through these revenue streams, SBI Aruhi maintains stable business operations.

SBI Aruhi aims to be a leading company in housing finance and provides diverse financial services. In particular, the company's management philosophy is to support customers in realizing their ideal homes at different life stages through financial solutions, while valuing each customer's important milestones. Through nationwide branches and multiple channels, the company offers housing loans including fixed-rate and variable-rate products to meet diverse customer needs.

Under the Medium-Term Management Plan 2025, SBI Aruhi targets the No. 1 market share for "Flat 35" and is expanding investments in sales networks and operations. The company is also strengthening product development for new customer segments including singles, seniors, and foreign nationals, while reinforcing risk management systems to advance investments in growth areas. Through these efforts, the company aims to increase the proportion of recurring revenue to over 50% and build a stable revenue foundation.

SBI Aruhi is strengthening its sales structure and expanding distribution channels. The company is establishing efficient market access through franchise stores, company-owned stores, and non-face-to-face channels. By expanding digital sales tools and promoting digital transformation, the company enhances sales support and responds to increasingly diverse customer needs. The company is also developing sustainable business models to prevent loss of business opportunities.

In strengthening operations, SBI Aruhi leverages cutting-edge technologies such as OCR, RPA, and AI to improve operational efficiency. Through enhanced underwriting processes and the introduction of eKYC, the company prevents improper use of housing loans. To address diversifying products and customer attributes, the company promotes digital transformation and aims to build optimal processes.

Amid intensifying competition, SBI Aruhi has introduced new products such as "ARUHI Housing Loan (MG Guarantee)" and "ARUHI Flat 50" to expand the fixed-rate market. While maintaining market share in "Flat 35," the company is strengthening proprietary loans and deploying strategies to prevent missed opportunities in growth areas.

To improve revenue structure, SBI Aruhi aims to expand recurring revenue. Through the consolidation of SBI Estate Finance as a group company and the launch of guarantee business operations, the company is building credit guarantee balances. The company is strengthening the handling of financial products beyond housing loans to establish a stable revenue foundation.