Slow Start For Fintechs In Japan

Fintech initiatives in Japan are yet to pick up, mainly on account of the unique nature of the country’s banking and financial system:

- Mohan

The International Monetary Fund places Japan at the third position in the list of the world’s biggest economies with a value of $5.1 trillion. The country has seen 8 straight quarters of stable macroeconomic growth. It has its own extremely ambitious targets for banks to open up their customer data, and it is expected that by 2020 more than 80 banks will have successfully adopted API Standards. This has opened up amazing possibilities for businesses seeking a new means to access consumer markets. In order to take care of the changing customer needs, the country has adopted technologies like artificial intelligence in a big way.

One of the major challenges that Japan is facing while ushering in financial reforms is the fact that the country is largely cashreliant. This is of course restricting the spread of fintechs, but the Japanese government has set a target of achieving 40% cashlessness by 2020 from the current 20%. One of the motivating factors is the Tokyo Olympics that will happen in that year.

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