Guided by the principle of “rooted in the community and supporting small and medium-sized enterprises (SMEs),” shinkin banks—cooperative financial institutions similar to credit unions in China—have become a preferred option for many SMEs. So what exactly characterizes a shinkin bank? We spoke with Mr. Yuichiro Uzuki, Executive Director of Jonan Shinkin Bank.
Shinkin Banks: Making Local Communities Better
Executive Director Uzuki began by explaining the basic philosophy of shinkin banks. Shinkin banks are cooperative financial institutions that do not seek profit as their sole purpose. Instead, they are committed to:
“Earning an appropriate profit, returning that profit to the local community, and contributing to the area’s development—treasuring the local we serve. That is the mission of shinkin banks.”
He offered an example:
“Jonan Shinkin Bank is headquartered in the Shinagawa area of Tokyo, and our business area is limited to parts of Tokyo and Kanagawa Prefecture.”
Shinkin banks primarily serve SMEs. If we compare all Japanese companies to Mount Fuji, large corporations are the summit, while SMEs—accounting for 99% of all Japanese companies—form the foundation that supports the peak. This is what makes shinkin banks true financial institutions for inclusive finance.
Shinkin Banks as the “Family Doctors” of SMEs
Using a medical analogy, Uzuki described shinkin banks as “family doctors.” They are the kind of institutions you can consult casually about a minor cold or cough, in contrast to the large hospitals you visit when facing a serious illness.
What shinkin banks value most is close, personalized service. Unlike traditional financial institutions that judge solely on numerical results, shinkin banks work side-by-side with customers every day, thinking together about questions like:
“How can we increase sales?”
“How can we improve the company?”
They put effort into improvement together with the client. The relationship is like family—sharing joy in success, worrying sincerely in difficult times, and striving to build that kind of bond.
Shinkin Banks: Helping Make SMEs’ Products “Visible”
Today’s “Good Work Creation” exhibition is a perfect demonstration of this mission. Our greatest role is solving the challenges faced by SMEs.
One major issue for SMEs is that, no matter how excellent their products are, they are often not widely known. Across Japan, there are outstanding products made from carefully selected materials and companies with remarkable technologies, but the key is:
“Helping them be recognized and creating opportunities for connections.”
This exhibition includes a dedicated business matchmaking area where buyers meet and negotiate with exhibiting SMEs. Reservations for these sessions were already fully booked before the event even opened.
This matchmaking space does more than facilitate transactions—it gives SMEs invaluable opportunities to receive concrete feedback from buyers. SMEs may excel in development and manufacturing, but they often lack access to professional advice on packaging design, product form, sales channels, and other aspects of commercialization.
For SMEs, more important than whether sales occur is the buyers’ perspective—insights into consumer needs that can inspire major realizations and support business rebuilding and growth.
The “Good Work Creation” exhibition carries a warm, tailor-made atmosphere. This year’s exhibition brings together clients of 152 of Japan’s 254 shinkin banks. For local businesses, Tokyo’s massive market is highly attractive. Even if they must pay exhibition fees, their strong desire to participate reflects the shinkin banks’ commitment to supporting local communities and SMEs.
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Origins and Evolution of the “Good Work Creation” Exhibition
The “Good Work Revitalization” exhibition—today’s business matchmaking event—began in 2012, the year following the Great East Japan Earthquake. Japan’s 254 shinkin banks typically maintain cooperative relationships. After the disaster, seeing that many SME clients of Tohoku-region shinkin banks suffered severe losses, Jonan Shinkin Bank proposed an initiative for nationwide support. As a result, shinkin banks from across Japan joined together to organize this exhibition.
The original purpose was to support the recovery of the Tohoku region. The first event, held at Tokyo Dome, primarily took the form of a local products fair, selling foods and specialties made by SME clients in the affected areas. The goal was to attract as many visitors as possible with the idea that “purchasing is supporting.”
Because the earthquake halted factory operations and customers switched to suppliers in other regions, even companies that rebuilt factories using government subsidies later struggled due to the loss of sales channels. What they needed for recovery was a “place of encounter” that could connect them with partners and create new opportunities for good business.
From the second year onward, the exhibition continued to feature Tohoku specialties (sake, confectionery, seafood, etc.) while extending support to other disaster-affected regions, including areas impacted by the Kumamoto earthquake and torrential rains in the Chugoku region.
Then came the global COVID-19 pandemic. Its impact was no longer limited to specific regions—it affected SME clients supported by shinkin banks nationwide. As a result, the purpose of the “Good Work Creation” exhibition shifted toward supporting SMEs across the entire country. Concretely, the focus moved from sales to business matchmaking as the core function.
Four years ago, the venue was moved to Tokyo Big Sight, where the event continues to be held today.
