CASE STUDY | The Joyo Bank, Ltd.

A shared operations model for tax and public payment processing through regional bank collaboration

■Short introductory summary
The Joyo Bank, Ltd. has established a shared tax and public payment processing model with The Tsukuba Bank, Ltd., using Primagest’s integrated centralised operations system. By consolidating processes previously performed separately by the two banks, the initiative improves efficiency, makes better use of existing resources and reduces the administrative burden on banks and municipalities.

■Turning declining paper volumes into an opportunity for collaboration
The wider adoption of account transfers, electronic tax payments and Japan’s standardised local tax QR code has reduced the volume of paper payment slips handled by financial institutions. However, tax and public payment processing remains an essential operation that demands accuracy and stability.
The Joyo Bank had already introduced Primagest’s integrated centralised operations system in 2021. As paper volumes declined, capacity became available within the existing platform. At the same time, The Tsukuba Bank faced the approaching replacement of its own system. The two regional banks therefore explored whether their non-competitive back-office operations could be consolidated.

■A common platform for previously separate operations
Since October 2025, The Joyo Bank has undertaken tax and public payment processing on behalf of The Tsukuba Bank. Payment notices for national and local taxes, municipal charges and utility payments are consolidated at The Joyo Bank’s operations centre, where they are classified, processed and aggregated using Primagest’s system.
Although both banks used the same platform, their document-handling practices, operating procedures and supplementary rules differed. Formats, tax descriptions and accounting standards also varied by municipality. Over approximately 18 months, the banks held nearly 50 meetings to align their workflows, with Primagest supporting technical verification, development and implementation.

■Measurable benefits for both banks
•Eliminating duplication: Processes previously performed separately by the two banks can now be completed through a unified workflow.
•Improving resource utilisation: The Joyo Bank can make effective use of existing system capacity and expects approximately JPY 40 million in stable revenue over five years.
•Reducing cost and reallocating staff: The Tsukuba Bank expects approximately JPY 40 million in cost reductions and plans to reassign around 70 to 80 per cent of the personnel previously involved to customer-facing sales functions.
•Reducing administrative burden: The joint review also identified inefficient procedures, benefiting both the banks and the municipalities they serve.

This initiative demonstrates a practical model for regional financial institutions seeking to share non-competitive administrative operations, optimise existing infrastructure and deploy personnel more effectively.

■READ THE FULL CASE STUDY AND WATCH THE INTERVIEW VIDEO
Discover how the two banks designed the shared operations model, aligned workflows across municipalities and implemented the new process with Primagest’s support. The full page also includes an interview video featuring the project team.