FinTech is a combination of “Finance” and “Technology,” referring to the integration of innovative technology into financial services. The rise of FinTech has been accelerated by the advancement of the internet and mobile technologies, transforming traditional financial services.
In Japan, the adoption of FinTech became more prominent in the 2000s. Initially, services like internet banking and online securities trading started to gain popularity, offering convenient and fast alternatives to traditional banking and brokerage services. The spread of credit cards and electronic money also contributed to the growth of cashless payments.
In the 2010s, with the widespread use of smartphones, FinTech evolved even further. Mobile payment apps, peer-to-peer money transfer services, and the emergence of cryptocurrencies led to increased FinTech usage among consumers and businesses. Japanese financial institutions particularly focused on developing new payment systems using blockchain technology and asset management services powered by AI, expanding the possibilities of FinTech.
FinTech is also seen as a means to promote financial inclusion, providing easy and low-cost financial services to people who previously lacked access to traditional banking services.
Japan’s financial services industry has undergone significant changes due to technological advancements in FinTech. This has improved the convenience of financial transactions and allowed for more personalized services for consumers. FinTech is expected to continue playing a vital role in Japan’s financial services industry in the future.