Aiful

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AIFUL IR corporate logo

AIFUL Corporation (アイフル株式会社, Aifuru Kabushiki-gaisha^?) (TYO: 8515 ) is one of the largest Japanese consumer finance companies. Currently the company is based in Kyoto and has annual profits of close to ¥100 billion on over ¥2 trillion worth of loans.

1 History
2 Criticism
3 Advertising
4 External links

[edit] History

Headquarters of AIFUL Corporation in Shimogyo, Kyoto, Japan

Aiful was established in April, 1967 by Yoshitaka Fukuda as a sole-proprietorship. In 1978, this small company was reformed in Kyoto as Marutaka, Inc. and opened its first four branches to expand its consumer-finance business. The company continued to grow over the next five years and it acquired three small companies in the same business segment and renamed itself Aiful in 1983. These mergers gave the company over ¥90 million in capital and a growing market share in the consumer loan sector. Soon afterward, the company began to offer home-equity and small business loans. During the 1980s and up to the present day, the company has continued to expand by finding new investment opportunities, particularly real estate, engaging in mergers to increase its market share.

Today the company offers a wide range of consumer financial services, ranging from issuing credit cards to providing home equity loans. Additionally, the company provides small business loans and until recently operated a chain of karaoke parlors and Taiwanese-style restaurants. The company has 1,572 branches (many of them automated machines similar to ATMs) throughout Japan and currently employs over 3000 people.

[edit] Criticism

The company has many techniques to promote repayment that some have viewed as unscrupulous, but have resulted in a low default rate for the bank. Additionally, the company has been charged by some individuals with exploiting the financial problems of some consumers by offering high-rate loans that must be secured by collateral, often the individual's real estate. This may lead to loss of consumer's homes and has led to allegations that the company is a sarakin or a loan shark. Several advocacy groups have been formed for those who feel victimized by such practices.

[edit] Advertising

In contrast with the more staid image of the more traditional banks, Aiful and other consumer finance companies attempt to have a livelier image. For example, the signs and logos of Aiful and its subsidiaries are often very colorful and eye-catching, seeking to draw passersby into loan outlets. Recent advertisement campaigns have featured Chihuahua TV ads and special loans marketed towards women. Additionally, Aiful and other consumer finance companies often distribute packages of tissues at mass transit stations.