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Finance

Risk-Taking Leads to New Opportunities

Japan’s financial system is maintaining its stability. Financial institutions as a whole are starting to adopt proactive lending policies both domestically and internationally. They are now more ready than ever to take greater business risks and are increasingly engaged in helping firms grow and revitalize.

Domestic loans have increased moderately while the rate of increase of overseas loans has remained high; financial institutions show strong interest in expanding overseas lending to support the global expansion of Japanese firms and meet the financial needs of countries with growth potential. They are gradually taking more risks by diversifying their asset investments, such as foreign bonds and investment trusts, while maintaining a high level of yen-denominated bond investment.

Currently, the key management tasks and challenges for individual financial institutions include responding to the decline in core profitability among regional financial institutions, appropriately dealing with the systematic importance of the large financial institutions, and strengthening their ability to respond to risks in areas in which financial institutions are actively enhancing their risk taking stance, particularly in overseas operations and investments in markets. There have also been recent movements to help ramp up interest in investing in new, local startup companies.

On the consumer side, even though the market is still dominated by cash-based transactions, companies throughout Japan including the national government are pushing for greater adoption of cashless alternatives such as debit, credit, and contactless options (radio-frequency communications and near field communication e.g. WeChat Pay, Apple Pay, and Google Pay). Cashless transactions make up just about 20% of personal spending due to traditions, an older demographic, and an inherent wariness to change among residents. Industry experts and officials noted 2018 as the first real year for cashless payments, and The Ministry of Economy, Trade and Industry unveiled their Cashless Vision in April of that same year, aiming to increase the percentage of cashless payments from 20% to 40% by 2027. With the impending consumption tax hike from the current 8% to 10% in October 2019, the government’s various upcoming steps to boost consumption is hopeful to aid in its spread.

Kyodo PR’s financial specialists provide the advice banks, foreign exchange companies, asset managers, venture capital firms, insurance companies, and technology firms need to build a positive, lasting image in market.

Recent Trends in Finance & FinTech

  • AI (e.g. Robo-Advisors)
  • FinTech (Payment Diversification)
  • Cryptoassets
  • Cross-Industry Ventures
  • Retail Investments (via Smartphones)
  • Restructuring of Local Banks
  • Tightening Regulations for Banks and Insurance Companies

Recent Trends in Finance & FinTech

  • AI (e.g. Robo-Advisors)
  • FinTech (Payment Diversification)
  • Cryptoassets
  • Cross-Industry Ventures
  • Retail Investments (via Smartphones)
  • Restructuring of Local Banks
  • Tightening Regulations for Banks and Insurance Companies

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