Creating social value for a better tomorrow

SHAKA-KACHI – derived from the Japanese term “Shakaiteki Kachi” meaning “creating social value” – encapsulates Sumitomo Mitsui Banking Corporation (SMBC) Group’s vibrant commitment to driving sustainability and positive societal impact radiating from its core business.

It isn’t just corporate speak. Social value creation has been ingrained in SMBC’s Singapore operations ever since opening its first branch in 1963, says Katsufumi Uchida, SMBC’s head of Asia-Pacific Division.

“SMBC has been rising with Singapore for over six decades, supporting sustainable development and innovation in Singapore and the wider Asia-Pacific region,” he says.

This Shaka-kachi philosophy dates four centuries back to the bank’s Japanese roots and is inspired by the principle of “Sanpo-Yoshi” inherited from its pioneers at Mitsui and Sumitomo.

“The spirit of Sanpo-Yoshi is where we prioritise the fulfilment of customers and society, alongside our business,” Uchida explains. “This has been deeply rooted in our corporate culture. Our 400-year history is anchored in this commitment to contributing to our clients and society.”

The ancient wisdom still guides SMBC, which has grown into one of Japan’s megabanks, managing over 257 trillion yen in total assets across 39 countries, including 15 locations in Asia-Pacific.

Of these, Singapore stands out as its regional nerve centre – SMBC Group’s Asia-Pacific headquarters and the heart of its multi-franchise strategy in Asia: to build strong local franchise through long-term collaboration with investee companies and strategic partners. Now the largest Japanese bank in Singapore, SMBC employs more than 1,400 people locally.

From Singapore, SMBC Group serves corporate and institutional companies and ultra-high net worth clients throughout the region, while focusing on SME and retail segments in its key markets of Indonesia, India, Vietnam and the Philippines.

With its strong track record in project finance, it has been named Global Bank of the Year eight times by Project Finance International and recognised in 2024 as Project Finance House of the Year by The Asset globally and in Asia-Pacific. It was also recognised by International Finance Corporation as the Best Global Trade Partner Bank by Portfolio Partnership, and remains a leading arranger for syndicated loans in Southeast Asia and Asia-Pacific.

In sustainable finance, the bank ranked first in Asean for environmental, social and governance (ESG) loans, according to LSEG data, and was recognised by Convergence for leading in blended finance deals between 2022 and 2024.

Sustainability leadership

Uchida is quick to highlight that it is through its “bread and butter” banking operations that SMBC pursues sustainability impact. The group has set ambitious targets: net-zero greenhouse gas emissions from its operations by 2030, and from its loan and investment portfolio by 2050.

To meet these goals, SMBC focuses heavily on green and renewable energy financing. In financing Keppel’s S$750 million Keppel Sakra Cogen Plant, for instance, SMBC is also making Singapore’s first hydrogen-compatible cogeneration plant possible.

Beyond direct financing, SMBC has also been involved in building the wider ecosystem needed for the future green economy.

As the only Japanese bank among nine founding members of the Singapore Green Finance Centre, SMBC is nurturing the next generation of sustainable finance talent. It has also lent expertise to other national initiatives including the Monetary Authority of Singapore’s Transition Credits Coalition.

Through its active participation and sponsorship of marquee sustainability events in Singapore – Temasek’s Ecosperity, the Asia Infrastructure Forum, and Singapore International Energy Week – SMBC aims to support advocacy efforts and shape conversations around sustainable finance.

“Sustainability means creating a society where today’s generation enjoys economic prosperity and well-being, while preserving it for future generations,” says Uchida. “This sums up what we aim to achieve in Singapore, with Singapore.”

Innovation hub

It is also from Singapore that SMBC drives innovation across its regional operations across Asia-Pacific.

The bank’s Asia Innovation Centre – set up in 2017 with support from Singapore’s Financial Sector Technology and Innovation grant scheme – has pushed digital and generative AI solutions for use beyond Singapore’s shores.

More than 70 corporate banking clients across the region are already using its “CFO Agent” dashboard for insights-driven decision making and incorporating Agentic AI workflows to enhance operational efficiency.

Singapore also hosts the US$200 million Asia Rising Fund, a corporate venture capital fund that invests in high-potential startups in South-east Asia that have synergies with the SMBC Group, focusing on startups in the fields of lending, payment, supply chain finance and digital assets.

SMBC also serves as a bridge between the two innovation powerhouses of Singapore and Japan with a number of government partnerships.

For instance, the bank’s partnership with the Singapore Economic Development Board since 2011 facilitates cross-border investments between the two countries, while a memorandum of understanding with A*Star opens doors for Japanese companies seeking to set up R&D operations, specifically in Singapore’s thriving science and technology ecosystem.

SMBC has also been pivotal to the Singapore FinTech Festival’s growth as a global platform that convenes leaders across finance and technology – playing a key role in its expansion into the bank’s home market with the GFTN Forum Japan (previously known as Japan FinTech Festival).

Cultivating a rich, inclusive workplace culture

Investing in human capital is increasingly important. “We believe it is key to train up a talent base that understands the role that ESG and technological innovation play in society and among businesses,” says Uchida.

“One of the seeds we’re planting today for a sustainable future is the training of tomorrow’s leaders.”

In 2024, employees in SMBC Singapore participated in over 1,300 leadership development opportunities – from bespoke core programmes to specialised ESG courses.

The expanded SMBC analyst programme brings more fresh graduates into an immersive programme designed to

build future financial leaders for the region, while its Global Rotation Scheme offers international exposure to broaden employees’ perspectives.

Much attention is also given to the shaping of workplace culture of its 1,400-plus strong workforce in Singapore.

“One of the driving forces that makes us unique as a financial institution is the pride we take in fostering a respectful workplace and inclusive culture,” says Uchida.

It is not mere aspiration but a measured reality. High employee job satisfaction is a defined priority for SMBC and tracked with a biannual in-house employee engagement survey.

“As an Asian bank, SMBC prides itself on its deep understanding of local markets and nuances, supported by a workforce comprising a significant number of local Singaporeans and individuals from diverse backgrounds,” says Uchida.

Beyond banking, building community

The bank’s policy of offering staff paid community leave and the introduction of its annual Shaka-kachi Day event has spurred more volunteerism. Over 30 per cent of its Singapore workforce contributed to local community causes in 2024.

SMBC volunteers worked to support vulnerable seniors in the community, as well as the conservation and sustainability of Singapore’s park and waterways and promote financial literacy among underprivileged families.

The bank’s “Finspiration Challenge” – a partnership with Junior Achievement Singapore in which SMBC provided volunteer mentors for the student participants – contributes to SMBC Group’s goal of reaching 1.5 million people through financial literacy programmes by 2030.

When the Association of Banks in Singapore launched its inaugural S$4 million Community Giveback Programme in June 2025, SMBC was among the participants. Apart from an anti-scam campaign and environmental clean-ups, the programme also aims to help 10,000 underserved families through grocery distributions.

“Our journey ahead, as a bank with an influential network, is not just about creating economic value but contributing social value in scale, and through the things we do, to make a better tomorrow for us and the next generation,” says Uchida.

As SMBC applies ancient wisdom to modern challenges, that social value extends far beyond the balance sheet.