The Latest in Fintech in Japan

Since the birth of the word “Fintech,” the financial business has changed from a closed market limited to certain institutions to a highly competitive market in which venture companies and communications companies have taken place to the forefront by taking advantage of technology. Existing financial institutions can no longer survive without the use of technology. Fintech service began in the area close to the consumer, such as the payments and remittances of small amounts, but is now beginning to enter areas that were considered a source of earnings for financial institutions, such as asset management and financing. This paper examines various cases that show the uses of Fintech domestically while comparing them to those overseas use-cases, looking into the background behind companies including non-financial institutions, that have applied Fintech. Consequently, we have begun to see companies with business strategies that use the data gathered to understand customer trends and recommend services that are aligned with customer preferences. Non-financial institutions that have many members use Fintech to solidify their engagements with their customers, while financial companies have been drastically reforming their customer point of contact and user interface to address customers directly with new technology and business models so as to survive.