Welcome to Project Story, a series that takes you behind the scenes of PayPay Group’s major projects. We shine a spotlight on key initiatives, revealing the real stories from the front lines—the challenges, the dedication of team members, and the breakthroughs—through interviews with those who made it happen. This time, we spoke with the key figures who spearheaded the launch of PayPay Bank’s much-anticipated “Guaranteed Loan by Credit Guarantee Corporation (CGC-guaranteed loan)” (*Japanese page only).
Naoyoshi Shibata
Deputy Group Head, Business Group, PayPay Bank
After working at Rakuten Bank and SBI Sumishin Net Bank, he joined PayPay Corporation in 2022. Following his involvement in launching the digital salary payment business, he was seconded to PayPay Bank. He assumed his current position in May 2025. Tasked with expanding PayPay Bank's business, he promotes the alignment of management policies and fosters group-wide coordination to maximize the potential of the PayPay Group and its various business divisions.
Hiroyasu Otabe
Head of the Business Division and Business Loan Division, PayPay Bank
He began his career in corporate sales at a major bank before moving to Yahoo Japan Corporation (now LY Corporation) and subsequently being seconded to The Japan Net Bank (now PayPay Bank). After working on acquiring individual and corporate accounts, he was transferred to the bank in October 2025. He is dedicated to supporting the growth of corporate and sole proprietor clients, aiming to encourage the primary use of their accounts and strengthen the bank's revenue base.
Yosuke Aoshima
Senior Manager of the Business Loan Promotion Department, Business Loan Division, PayPay Bank
After graduating, he joined a major bank, gaining experience in both branch and head office operations. In 2003, he was seconded to The Japan Net Bank (now PayPay Bank). He has been involved in new product planning and the launch of corporate business, assuming his current role in May 2025. He is responsible for the planning and promotion of corporate loan products.
CGC-guaranteed Loan Is the First Step into the Corporate Loan Market
First of all, what is the guaranteed loan by the credit guarantee corporation?
Aoshima:
The guaranteed loan by the credit guarantee corporation, often called CGC-guaranteed loan, is a system where the Credit Guarantee Corporation acts as a public guarantor when small and medium-sized businesses (SMBs) or sole proprietors borrow business funds from financial institutions. While the hurdles for securing a loan can be high when screening is conducted by a bank alone, this public guarantee system facilitates smoother financing. However, because the process traditionally required in-person procedures, no online bank had ever offered CGC-guaranteed loans; they were primarily handled by community-focused financial institutions like regional banks and credit unions.
Why did PayPay Bank focus on CGC-guaranteed loans?
Otabe:
Since rebranding from The Japan Net Bank to PayPay Bank, our coordination with PayPay has deepened, leading to a dramatic increase in the number of corporate and sole proprietor accounts. However, many of these accounts are currently used only for receiving sales proceeds, and aren’t yet being used as their primary bank account.
To address this issue and begin the journey to become true partners to these businesses, we knew we had to support their growth through financing and establish ourselves as their main bank. At the same time, many small business owners are busy with their core operations during the day, making a trip to a bank branch a significant burden. To solve this problem and take the first step toward becoming their main bank, we arrived at the idea of leveraging the strengths of an online bank to offer CGC-guaranteed loans completely online.
Shibata:
Following its integration into the PayPay Group in April 2025, PayPay Bank’s management policy underwent a major shift. We adopted a new policy of “pursuing scale,” setting the goal, particularly in the corporate lending sector, of catching up to and surpassing our competitors within five years.
In the banking business, the loan-to-deposit ratio—which indicates how much of our deposits are being lent out—is a critical metric. Corporate lending is an essential business for generating high returns, but the online space remains a blue ocean, with no bank having made a full-scale entry yet. I am confident that by combining our strengths—a user-centric UI/UX, our overwhelming system development capabilities, and PayPay’s robust merchant base—we can establish an overwhelming advantage among online banks.
This CGC-guaranteed loans service is not just another product; it is the very first step we are taking to compete seriously in the corporate lending market.
Achieved CGC-guaranteed loans Through Passion and Persistent Negotiation in Five Years
Could you walk us through the project’s development process?
Otabe:
We first embarked on this project about five years ago. The principle for CGC-guaranteed loans were traditionally handled multiple document exchanges in person, but we prioritized user convenience and approached the Credit Guarantee Corporation to discuss introducing an online process. However, during our initial meetings, I felt they were cautious about the idea.
The existing system of in-person lending was functioning smoothly, and they likely had doubts about whether an online bank with no physical branches could handle CGC-guaranteed loans. Around the same time, project priorities were reshuffled internally, and this initiative was unfortunately put on hold.
Aoshima:
The turning point came around 2022. With the impact of COVID-19, the government’s so-called “zero-zero loans” (zero-interest, zero-collateral loans) were introduced, and I heard that the Credit Guarantee Corporation’s service desks became overwhelmed with a massive volume of applications, in-person procedures, and paper documents. This situation raised their awareness of the need for an unprecedented transformation: digitalizing the application process.
Recognizing this shift, we resumed negotiations. During the hiatus, we had built a track record of achievements, such as our business loans and deposit balances, by leveraging synergies with the PayPay Group. We conveyed that we were a trustworthy financial institution and steadily built a relationship. We also emphasized that this was a win-win initiative, as we could contribute to solving the corporation’s challenges with the online processing know-how we’ve cultivated as a dedicated online bank.
Looking back on a five-year-long application process, I remember countless discussions with the corporation, driven by a single-minded desire: “to create an environment where busy entrepreneurs can apply for loans online, 24/7.” Our passion eventually paid off, and the corporation began to share our vision.
From a service development perspective, what areas did you focus on?
Otabe:
Our focus was on designing a user-centric UI/UX to support 24/7 online applications. By introducing features like input assistance and a system for smoothly uploading necessary documents, we have significantly reduced the time and effort associated with traditional paper-based procedures. Thanks to these efforts, our customers can now complete their CGC-guaranteed loans applications quickly, at their own convenience, without being constrained by time or location.
What results did this lead to?
Aoshima:
The fact that CGC-guaranteed loans, which in principle required paper documents and in-person procedures, can now be applied for and completed entirely online is a huge achievement. For small business owners in particular, fundraising alongside their main business is an extremely time-consuming task. But with PayPay Bank’s CGC-guaranteed loans, they can apply for a loan on a single smartphone in their spare time. This means they have more time to focus on their core business, and we believe we have established a system that can support our customers’ business growth more than ever before.
Creating New Value Through Lending to Boost the Japanese Economy
What is rewarding or interesting about working at PayPay Bank?
Otabe:
I find it rewarding to be able to support our customers’ growth. This project, for instance, was an unprecedented endeavor for an online bank. By offering online CGC-guaranteed loans applications, we were able to eliminate cumbersome paperwork and the restriction of applying only during business hours. Leveraging the speed that is unique to an online bank, we can break through the constraints of existing financial services and offer our customers highly convenient products. That is our strength.
Aoshima:
It’s the ability to change the status quo and address the challenges that companies face. In particular, SMBs, which account for over 99% of all companies in Japan, often struggle with fundraising. My team includes many members who previously worked at banks or government-affiliated financial institutions, so we have always been keenly aware of the challenges and expectations of businesses. That’s why we have such lively debates about “what services our customers truly want” and “how PayPay Bank can create new value.” Every member shares the common goal of being user-first as we plan and promote new services.
Shibata:
While online transactions have become the norm for personal banking, the corporate sector has barely begun to adopt them. It’s rare to even see businesses attempting it, so real competition hasn’t even started. PayPay Bank has made tackling the corporate sector one of the core pillars of its future business strategy. If you join PayPay Bank now, you have the chance to be a trailblazer in this untapped territory, leading the charge to forge a new path faster than anyone else.
What are your future vision and goals?
Shibata:
As I’ve said, CGC-guaranteed loans is just the beginning. We aim to build public recognition that “PayPay Bank supports corporate cash flow” and become a presence in the corporate lending space that surpasses credit unions and regional banks.
To achieve this, organizational transformation is essential. We are currently reviewing our organizational structure. By strengthening our Relationship Management (RM) for mid-sized enterprises and creating a system that can provide services to SMBs by treating their corporate and personal needs as one, we will deliver value to companies of all sizes.
Do you have a message for our readers?
Otabe:
PayPay Bank holds the potential to support corporate growth and boost the Japanese economy through the power of digital technology and finance. As Japan’s social structure changes and supporting SMBs becomes increasingly difficult, we want to use our strengths to help restore vitality. For those who want to change the status quo in Japan with speed and through unprecedented challenges like CGC-guaranteed loans, let’s build the future of corporate finance together.
Aoshima:
The appeal of our work is the ability to leverage the PayPay Group’s massive customer base to create innovative products as a unified group. I would love to work with passionate individuals who want to participate in planning and developing banking services that are not bound by existing frameworks and contribute to the development of businesses.
Shibata:
For us as a financial institution, our greatest social significance lies in “credit creation.” We empower SMBs through lending. Through our loans, perhaps more wonderful restaurants will open near our office. That’s what makes this exciting. We look forward to welcoming those who want to join us in making the world a better place.
Current job openings
*Job openings and employee affiliations are current as of the time of the interview.