the state of fintech in japan
TRANSCRIPT
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The State of FinTech in Japan
Natalie Shiori Fleming
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History of Fintech Association Japan
2014/101st meetup
2015/9 FAJestablishe
d
2016/9 1st
anniversary
30 people Venture: 21Corporate:10Individual: 10
Total: 41
Venture: 53Corporate:97Individual: 39
Total: 189
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Japan FinTech
2017Growth
2016 Action
2015Awarene
ss
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Fintech = buzzword
Source: Google trends keyword: fintech location: JP
Interest in “Fintech” in Japan
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From buzz to 83% growth
Source: METI “Current situations of FinTech”
2012 2013 2014 2015
559
4,030
5,586
10,223
Funds raised for FinTech companies (JPY M)
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Japan FinTech Ecosystem
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Payments Investment
Security Blockchain
Lending Accounting
CLO/Big Data
PFM
*examples of Japanese Fintech startups based on FAJ research
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Key Trends in 2015-16
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BlockchainCrypto-currency
Exchanges
Online PaymentsP2P
Crossborder
Automated InvestingRobo-advisory
Algorithmic TradingIncrease due to clarified law
Entry of large players
Entry of foreign players
Pay friends to split bills
Utilizing AI for smarter trading
Helping millenials invest
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Banks vs. FinTech
Source: PWC Global Fintech survey
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Successful Collaborations
Moneytree x Mizuho BankService using AI for
foreign currency deposits
X
Alpaca DB x Jibun BankPFM service in Mizuho’s
banking app
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Government & Regulatory Support
- May 2016: regulation on virtual currency- Fintech promotion joint committee,IT strategy committeeLDP
METI
BOJ
FSA
Joint partyStudy group
Tokyo city
- Banking Act + Settlement Act amended- Dec 2015: Fintech support desk established- May 2016: Expert panel on Fintech startups established
- 2 study groups on Fintech conducted
- Fintech study group & investigative commisions- Proposals on legal changes
- Fintech Center established- Forum on Payments and Settlement systems
- Dialogue towards framework for a Global Financial Center
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Opportunity?
Australia
Spain
South Korea
Canada
Italy
France
Germany
Britain
Japan
US
2.5
2.7
2.9
4.2
5.1
5.4
6.3
7.5
16.2
65
Top 10 Countries in Personal Financial Assets (Trillion USD)*
Sources OECD , Global Note*2013, Only OECD members
Cash/ Deposit; 53%
Stocks; 10%
Securities othen than stocks; 7%
Insurance/Pension; 26%
Others; 4%
Breakdown of Personal Financial Assets in Japan (2014 – B USD GDP)
TOTAL GDP
$9,288 Billion
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Challenges
Employee MobilityHigh skilled employees not interested in taking risk on startups? Service DemandLow financial + IT literacy? Less dissatisfaction with existing services?
FundraisingCompared to US, difficult to raise large amounts of funding?
Laws/RegulationDifficult to build scalable Fintech business?Takes too long to launch?
Fintech
Fundraising
Employee Mobility
Service Demand
Laws & Regulation
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3,394 6,571
12,187
22,286
37,434
56,787
Expected growth of Japan FinTech market (Million Yen)
Just the beginning…
2015 2016 2017 2018 2019 2020
2016 → 2020 : ~9x
Source Yano ICTNote1: Based on Sales of FinTech venture companiesNote2: 2015 figures are estimates. 2016 figures is forecasted.
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FAJ Goal
Continue supporting the expansion of the Japanese FinTech ecosystem & globally
www.fintechjapan.org