A digital platform created by all of Fukui, leading the nation

Dentsu Inc.'s 'Urban Future Design Unit' is a specialized team that envisions the future of cities and lifestyles, providing support across various fields from conception to realization ( details here ).

This series explores, from various angles, what is required for future urban and community development, as well as what makes cities highly livable.

This time, Masaya Taniguchi from the Urban Future Design Unit interviewed Takumi Kobayashi, President and CEO of Fukui Digital. We heard about the company's initiatives, guided by its purpose: "To enhance the well-being of people living in Fukui and those visiting Fukui through DX."
【Fukui Digital】
Established in September 2022 through joint investment by Fukui Bank and Fukui Shimbun. It implements digital initiatives under the purpose of "enhancing the well-being of people living in Fukui and those visiting Fukui through DX." As its core business, it develops and operates "Fuku App," a platform offering various services aimed at creating a smart life in Fukui.

<Table of Contents>
▼A Rare Joint Venture Nationwide: A Regional Bank and a Regional Newspaper Company

▼Building on Fuku App's Achievements to Expand the "All Fukui" Circle

▼Making Fukui Prefecture, Already Happiest in Japan, Even Happier

A Rare Joint Venture Between a Regional Bank and a Local Newspaper

Taniguchi: Fukui Digital was established in September 2022 through joint investment by Fukui Bank and Fukui Shimbun. Our "Urban Future Design Unit" joined the project from its inception, supporting everyone—including Mr. Kobayashi—to help realize the Fukui Model of a digital society. Today, I'd like to revisit the background of Fukui Digital's establishment, the initiatives undertaken so far, and the vision for an ideal, happy city.

Kobayashi: Thank you for having me. Let me start with the background of the establishment. Both Fukui Bank and Fukui Shimbun were founded in 1899 and have conducted business in Fukui. While the value each provides differs, both companies share the corporate philosophy of realizing regional development and enriching the lives of people living in the area.

In 2016, we formed a business alliance to build foundations for regional revitalization and proposed the "Fukui Value Creation Platform Initiative." As concrete steps, we issued the electronic money card "JURACA" to promote cashless payments within the prefecture and launched a crowdfunding service specialized for Fukui Prefecture.

Taniguchi: So both companies have been working together on initiatives to revitalize Fukui for some time now.

Kobayashi: In 2019, we announced the "New Fukui Value Creation Platform Concept." This aims to build a "payment platform" through smartphone apps, such as a regional money and regional point system, in collaboration with businesses and local governments across Fukui Prefecture. Simultaneously, we also aim to realize the construction of a "people and information platform," including support schemes for human resource development and manufacturing.

Taniguchi: So Fukui's digital direction was already taking shape at this point.

Kobayashi: That's correct. The vision of the "New Fukui Value Creation Platform Concept" is "to build a sustainable society by providing new experiential value from the perspective of residents." We aimed to go beyond just cashless payments, looking at broader areas and using digital power to invigorate the region. As the foundation for this, we sought to build a Fukui Model digital platform through a smartphone app. Within this flow, Fukui Digital was established in 2022, and the "Fuku App" smartphone application business began.

Taniguchi: Isn't it quite rare nationwide for a regional bank and a local newspaper company to jointly launch a business initiative aimed at developing the entire prefecture?

Kobayashi: I believe it is quite uncommon. However, even when we proposed the "Fukui Value Creation Platform Concept" in 2016, we never intended to develop the business solely between the two companies. From the outset, we envisioned revitalizing the region through an " " approach, collaborating with all stakeholders—various businesses, municipalities, civic tech groups, and others within the prefecture. This remains an essential, unchanging concept for us.

Building on the achievements of the "Fuku App" while expanding the "All Fukui" network

Taniguchi: It's been a year since Fukui Digital was established in September 2022. Earlier, you shared the vision of "providing new experiential value from the user's perspective." What initiatives have you implemented so far?

Kobayashi: Our first initiative was the launch of the premium digital gift certificate "RENEW Pay" during the industrial tourism event "RENEW," held from October 7th to 9th, 2022, in Sabae City, Echizen City, and Echizen Town, Fukui Prefecture. The "Fuku App" was released on October 1, 2022, and this was the first initiative utilizing the app's digital payment function. It worked such that paying 5,000 yen would charge 6,000 yen worth of "RENEW Pay."

"RENEW" was an event where visitors could tour and experience craft workshops and other manufacturing sites, and a market was also held. "RENEW Pay" could be used for payments for merchandise and workshop experiences at this event. Approximately 500 people used it during the event period, with 40% of them being visitors from outside the prefecture.

Taniguchi: So visitors from outside the prefecture downloaded and used the local app "Fuku App." It was a great deal for them.

Kobayashi: That's right. However, our goal wasn't just to stimulate consumption. We wanted to collect various data on consumer behavior at this event through "RENEW Pay." Analyzing the actual data revealed where people came from, what they spent money on, and how much they spent. Furthermore, we observed several characteristics: men tended to make larger payments than women, residents within the prefecture frequently used "RENEW Pay" for food and beverage purchases, and payment amounts were most common in the 4,000-yen range. We then proceeded to return the data we collected to the community as open data, ensuring no personal information could be identified, so it could be utilized by various businesses.

Taniguchi: When you say "returning the data," does that mean, for example, local traditional craft businesses could use it for new product development or event planning?

Kobayashi: That's one example, but the data could also be useful for local governments planning future event strategies. Building on the success of "RENEW Pay," our next step was participating in the National Travel Support Program, which launched nationwide across all 47 prefectures in January 2023. This program provides travelers with subsidies for lodging costs and regional coupons. Starting in January, the distribution of regional coupons was unified, in principle, to electronic coupons. At that time, the "Fuku App" handled the issuance of Fukui Prefecture's electronic coupons. It's rare for a local app to be responsible for issuing electronic coupons in such a nationwide initiative. We developed the project in collaboration with the Tourism Federation and local businesses.

Beyond coupon issuance, we decided to use the "Fuku App" to distribute tourism information, news, and local disaster prevention updates within the prefecture. We believe this provided visitors not only with payment convenience but also various added values. Thanks to this initiative, the "Fuku App" reached 150,000 registered users, and its affiliated stores expanded to approximately 3,000 locations.

Taniguchi: Since it was a nationwide travel support initiative, it scaled up rapidly, didn't it? Why was the "Fuku App" selected for the National Travel Support Program in the first place?

Kobayashi: Beyond the electronic coupon system, Fuku App also provided tourism information, local information, and coupons unrelated to the travel support program. We believe that our ability to offer such added value to users, not just payment functionality, was a key factor in Fuku App being adopted. Furthermore, I think the solid track record we built with "RENEW Pay" in payment processing and the utilization of payment data was also a major factor.

Taniguchi: So the "RENEW Pay" initiative paved the way for the next project. This one can gather even more data than "RENEW," right?

Kobayashi: Exactly. From January to July 2023, approximately 700 million yen in payments were processed within the app. This allowed us to obtain detailed behavioral data on tourists—where they visited in Fukui and where they spent their money. We are currently working to share this data as open data with the Tourism Federation and local businesses.

Furthermore, in February 2023, the local Takefu Chamber of Commerce and Industry collaborated with Fukui Digital to launch "Digital Take-Pon," an electronic discount (coupon) program offering savings on purchases in Echizen City. This digitized coupons previously issued on paper, making them available through the "Fuku App." Digitization allowed us to track exactly where and how the coupons were used. We're seeing more visitors from outside the city than expected. We're sharing the data gathered from this initiative with the Takefu Chamber of Commerce and Industry and jointly planning future sales expansion strategies.

Taniguchi: So, you handle both county-wide initiatives like tourism projects and specific municipal projects like this one in Echizen City. It's clear that various stakeholders are joining in, driving forward collaboration and initiatives across all of Fukui. The trust built by long-established, locally rooted companies like Fukui Bank and Fukui Shimbun, who are committed to this effort, is also significant, isn't it?

Kobayashi: That's right. We're seeing firsthand how the "Fuku App" is connecting all sorts of people. In November 2023, we launched the "Fukui Happy Coin."

Taniguchi: What kind of project is that?

Kobayashi: Fukui Prefecture is currently establishing the infrastructure for a digital regional currency within the prefecture. During this process, the "Fuku App" was selected as the platform for the prefecture's digital regional currency.

Taniguchi: So instead of each municipality using separate platforms for their initiatives, the goal is to unify them as much as possible.

Kobayashi: Yes. This is a very rare initiative nationwide. "Fukui Happy Coin" is a platform for digital regional currencies and points usable within Fukui Prefecture. For example, it can be used to receive certain national or prefectural benefits like child-rearing allowances, or points earned as compensation for volunteer activities can be used for shopping. Municipalities can also sell digital regional gift certificates using "Fukui Happy Coin." We plan to utilize it for various initiatives by each municipality going forward.

*Fukui Digital Release (November 1)
Fukui Prefecture and All Municipalities' Digital Payment Platforms: Fukui App Undergoes Major Revamp

Making Fukui Prefecture, Japan's Happiest Place, Even Happier

Taniguchi: What future projects are you considering?

Kobayashi: Beyond establishing the infrastructure for digital regional currencies within the prefecture, Fukui Prefecture is striving to fully leverage digital capabilities. We aim to revitalize the regional economy, promote behavioral changes among residents, invigorate local communities, and advance administrative policies—all through a unified "All Fukui" approach.

Fukui's digital initiatives are also receiving consultations from various stakeholders across all fields, including education, tourism, and transportation. A trend is emerging to use the "Fuku App" as a foundation to solve various social issues.

Taniguchi: Local governments and businesses that see the "Fuku App" project want to implement their own initiatives using it. Implementing these initiatives improves services. Furthermore, by involving various stakeholders, a virtuous cycle is created: the "All Fukui" network expands, Fukui's digitalization advances, and quality of life improves. Speaking of major news for Fukui Prefecture, the Hokuriku Shinkansen will finally extend to Tsuruga Station in March 2024. Are any initiatives being considered in connection with this?

Kobayashi: Actually, in 2022, we established the Fukui MaaS Council with Fukui Bank, Fukui Shimbun, and representatives from 11 municipalities in northern Fukui Prefecture. Regional transportation operators are also members of this council. We are advancing plans to implement MaaS functions in the "Fuku App" in time for the Shinkansen extension, such as selling special promotional tickets and enabling route searches. We aim to enhance convenience in the transportation sector through the "Fuku App" and improve the well-being of many people.

Taniguchi: Finally, President Kobayashi, or perhaps Fukui Digital, could you describe what you envision as a city with high levels of happiness?

Kobayashi: This is my personal, somewhat abstract view, but I envision a city where diverse challenges arise, giving birth to new value. That value then circulates robustly within the region, continuously expanding. Fukui Prefecture is already recognized as having a high level of happiness. It boasts abundant nature, delicious food, and above all, is a very livable place. Plus, it's a prefecture full of good people (laughs). In the Japan Research Institute's Happiness Ranking of all 47 prefectures, Fukui has ranked first for five consecutive times since 2014. When talking with local residents, many express deep affection for Fukui and take pride in its culture and economic environment.

However, if we become complacent with the status quo, we risk being swept away by the wave of declining birthrates. The value created within the region could be lost or scattered outside the area. To remain a permanently high-happiness city, we must challenge ourselves and build a model where the value generated through those challenges circulates and expands.

Taniguchi: That's exactly right. The key is how to create that value.

Kobayashi: Since proposing the "Fukui Value Creation Platform Concept" in 2016, we've believed that the ideal for a region is for diverse local stakeholders—industry, government, and academia—to co-create a sustainable ecosystem for the community and economy. This forms the backbone of Fukui's digital initiatives. We take pride in our initiative to build Fukui's future together using digital power, recognizing it as an advanced and challenging model. Moving forward, we will continue to create new value for the region through challenges undertaken by "All Fukui."

Taniguchi: It would be even more gratifying if the "Fukui Model Digital Society" could serve as a reference for urban development in other regions and positively influence various sectors. Thank you for your time today.

[Contact for Inquiries Regarding This Matter]
Urban Future Design Unit
Website: https://www.dentsu.co.jp/labo/futuredesign_unit/index.html
Email: futuredesign-unit@dentsu.co.jp