Sony 2004 Annual Report Download - page 55

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Sony Finance International, Inc.
Sony Finance International, Inc. is involved in the
provision of credit card, e-commerce payment
processing and leasing operations. In 2002, the
company began issuing its eLIO-branded cards,
which were created specifically for Internet shopping
and incorporated Sony’s contactless IC card tech-
nology. Efforts to increase the number of member
merchants and affiliated partners are supporting
steady growth in the number of card members and
volume of transactions. As of March 31, 2004,
there were about 500,000 eLIO cards and 1 million
conventional credit cards, in total about 1.5 million
cards issued by Sony Finance International, Inc.
Raising the number of eLIO cards issued to 1
million by March 31, 2005 is the next goal. Making
the card even more attractive are two additional
functions: the ability to serve as e-money for the
Edy service of bitWallet, Inc.; and VISA cobranding.
To reinforce and enlarge its operating foun-
dation, the Sony Group is currently contem-
plating a public offering of SFH, which would
diversify SFH’s ability to procure funds to
support its growth. It would also facilitate
accurate assessment of the value of SFH’s
business, thereby likely leading to a growth in
value of the entire Sony Group.
Strengthening products and services by
integrating sales channels and delivering
comprehensive financial services that
adapt quickly to shifts in market trends
All three Sony financial services companies
have an excellent reputation among customers
for their ability to offer distinctive products and
services. Sony Life is known for its consulting
sales centered around a team of highly trained
life insurance professionals called Lifeplanners.
Sony Assurance conducts direct sales, pre-
dominantly by telephone and the Internet,
while Sony Bank serves customers mainly
through the Internet. We plan to integrate the
strengths of these companies while harnessing
Sony’s spirit of creativity and innovation. This
process will allow us to fill in gaps that exist in
Sony Life
Sony Life is guided by the slogan “Sony Life Quality.”
which expresses the company’s desire for people to
understand that, like any other product, quality is a
key element in the life insurance industry.
Customized insurance plans are formulated for
each customer by highly trained life insurance profes-
sionals called Lifeplannners, or Partners (independent
agents), who listen to the customer and offer analysis
and consulting based on the their current status, plans
and future goals. Sony Life provides policies and
protection that best match the needs of each cus-
tomer over their entire lifetime, ensuring peace of
mind and well-being. In the event of an unfortunate
occurrence, coverage and other benefits are provided
in an accurate and timely manner.
While overall individual life insurance in force in
Japan is declining, Sony Life’s excellent reputation led
to a 5.8% increase in individual life insurance in force
during the fiscal year ended March 31, 2004 to
¥26,242.6 billion. Furthermore, the cancellation and
lapse rate remained low at 7.4%.
Sony Assurance
Sony Assurance offers fair and meticulously structured
individualized policies through its diversified-risk auto-
mobile insurance and cancer insurance called SURE,
both of which are sold through the Internet and over
the telephone. For the fiscal year ended March 31,
2004, steady growth in the number of policyholders
continued, resulting in a 27% increase* in net
premiums received to ¥31 billion. The number of
automobile and cancer insurance policies in force
surpassed 500,000. As a result, Sony Assurance
recorded operating income for the first time (on a
U.S. GAAP basis). Five years since its creation, Sony
Assurance is entering the next phase of its operations
based on the corporate slogan, “Feel the Difference—
A difference that will change insurance.” We are
working on creating distinctive products and services
to achieve this difference and translate it into value
for customers.
*Net premium revenues and year-on-year changes at Sony
Assurance are calculated on a U.S. GAAP basis. Therefore, these
figures differ from the results that Sony Assurance announces on
a Japanese statutory basis.
Sony Bank
In an effort to allocate, manage and invest the finan-
cial assets of customers to match their individual
needs, Sony Bank offers an investment and asset
management tool called MONEYKit through its
Internet service site. During the fiscal year ended
March 31, 2004, the number of accounts at Sony
Bank increased 77,666, or 40%, to 268,780, and
deposits rose ¥130.1 billion, or 52%, to ¥378.8
billion. Particularly noteworthy were foreign currency
deposits, a 24-hour service, which rose 2.2 times, or
¥58.6 billion, to ¥107.2 billion.
Sony Bank is dedicated to maximizing convenience
for housing loan customers. For example, Sony Bank
offers a loan that eliminates the need to visit a bank
office during the entire application and approval
process. Furthermore, housing loan customers can use
the Internet to easily change the interest rate structure
on a loan or make advance repayments. As a result,
the balance of housing loans rose ¥39.7 billion, or 2.9
times, during the fiscal year ended March 31, 2004 to
¥60.4 billion.
the customer segments and services of each
financial services company.
This integration strategy is already being
put into practice. For instance, Sony Life’s
Lifeplanners introduce automobile insurance
services offered by Sony Assurance to their
customers. Likewise, the sales team at Sony
Assurance recommend the Lifeplanner consult-
ing services of Sony Life. Furthermore, at Sony
Bank, Sony Life’s group credit life insurance
policies are offered to customers who apply for
housing loans from Sony Bank. SFH intends to
accelerate its integration strategy in order to
continue offering competitive, value-added
products and services that conventional
financial institutions cannot match.
My Sony Card, a credit card created for secure and
simple Internet shopping
Home Electronics Mobile Electronics Game Entertainment Financial Services Other
(as of May 2004)