For decades, Japan has been known for its solid, predictable financial landscape built on aversion to risk and long-term returns. As a result, according to a Deloitte report, it’s been striving to attract investors and venture capitalists. Yet, in the last few years, the Japanese have been facing a much-welcomed revolution caused by fintech, a market that, in 2021, will be 15 times bigger than it was in 2015. The reason is that the fintech scene has been evolving thanks to a few factors that are key to the success of entrepreneurs in the country:
Support from the government – The Japanese Ministry of Economy understands that emergent fintech companies will bring innovation, competitiveness and jobs. In a recent publication, the ministry commits to a more modern regulatory framework, promoting such innovations as application programming interfaces (API) and Blockchain and electronic data exchange (EDI), especially among small and medium-size companies.
New regulation – In March 2019, the Japanese authorities set new rules for the Blockchain and fintech markets, offering more security and transparency to investors. The government is also studying new regulations for banks, which would potentially help new competitors, especially the ones involved with emerging technologies.
A strong ecosystem – Recently-founded associations such as Fintech Association of Japan and hubs like Finolab are helping to create a strong ecosystem of companies, united to learn from and help each other.
Investors – Japan is one of the most important business & tech hubs of Asia, as well as a safe haven for low-interest rates seekers. It is also a forward-thinking country known for its innovative companies. These unique characteristics attract investors who are looking for disruptive but safe projects to fund.