The document summarizes the state of fintech in Japan. It discusses the history and growth of the Fintech Association Japan from 2014 to 2016. Key trends in 2015-2016 included the rise of blockchain, cryptocurrency, online payments, peer-to-peer lending, and robo-advisory services. Both banks and the Japanese government have supported fintech startups through collaborations and regulatory changes. However, challenges remain around fundraising, employee mobility, service demand, and laws/regulations. The fintech market in Japan is expected to grow nearly 9 times from 2015 to 2020, showing significant potential for continued expansion.

1. The State of FinTech in Japan
Natalie Shiori Fleming

2. 2
History of Fintech Association Japan
2014/10
1st meetup
2015/9 FAJ
established
2016/9 1st
anniversary
30 people Venture: 21
Corporate:10
Individual: 10
Total: 41
Venture: 53
Corporate:97
Individual: 39
Total: 189

3. 3
Japan FinTech
2017
Growth
2016
Action
2015
Awareness

4. 4
Fintech = buzzword
Source: Google trends keyword: fintech location: JP
Interest in “Fintech” in Japan

5. From buzz to 83% growth
Source: METI “Current situations of FinTech”
559
4,030
5,586
10,223
2012 2013 2014 2015
Funds raised for FinTech companies (JPY M)

6. Japan FinTech Ecosystem
6
Payments Investment
Security Blockchain
Lending Accounting
CLO/Big
Data
PFM
*examples of Japanese Fintech startups based on FAJ research

7. Key Trends in 2015-16
7
Blockchain
Crypto-currency
Exchanges
Online Payments
P2P
Crossborder
Automated
InvestingRobo-advisory
Algorithmic Trading
Increase 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

8. 8
Banks vs. FinTech
Source: PWC Global Fintech survey

9. 9
Successful Collaborations
Moneytree x Mizuho Bank
Service using AI for foreign
currency deposits
X
Alpaca DB x Jibun Bank
PFM service in Mizuho’s
banking app

10. 10
Government & Regulatory Support
-May2016:regulationonvirtualcurrency
-Fintechpromotionjointcommittee,
ITstrategycommittee
LDP
METI
BOJ
FSA
Joint party
Study group
Tokyo city
- BankingAct +SettlementActamended
- Dec2015:Fintechsupportdeskestablished
- May2016:ExpertpanelonFintechstartups
established
- 2studygroupsonFintechconducted
- Fintechstudygroup&investigative
commisions
- Proposalsonlegalchanges
- FintechCenterestablished
- ForumonPaymentsandSettlementsystems
- DialoguetowardsframeworkforaGlobalFinancial
Center

11. 11
Opportunity?
2.5
2.7
2.9
4.2
5.1
5.4
6.3
7.5
16.2
65
Australia
Spain
South Korea
Canada
Italy
France
Germany
Britain
Japan
US
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/Pensi
on, 26%
Others, 4%
Breakdown of Personal Financial Assets in
Japan (2014 – B USD GDP)
TOTAL
GDP
$9,288
Billion

12. 12
Challenges
Employee
Mobility
High skilled
employees not
interested in
taking risk on
startups?
Service Demand
Low financial + IT
literacy? Less
dissatisfaction with
existing services?
Fundraising
Compared to US,
difficult to raise
large amounts of
funding?
Laws/Regulation
Difficult to build
scalable Fintech
business?
Takes too long to
launch?
Fintech
Fundraising
Employee
Mobility
Service
Demand
Laws &
Regulation

13. 3,394
6,571
12,187
22,286
37,434
56,787
Expected growth of Japan FinTech market
(Million Yen)
13
Just the beginning…
2015 2016 2017 2018 2019 2020
2016 → 2020 : ~9x
Source Yano ICT
Note1: Based on Sales of FinTech venture companies
Note2: 2015 figures are estimates. 2016 figures is forecasted.

14. 14
FAJ Goal
Continue supporting the expansion of the Japanese FinTech
ecosystem & globally
www.fintechjapan.org