The Bank of Japan is ready to lead research and analysis in order to promote fintech in Japan on the basis that it has “various implications” for central banking, according to Reuters today.
The BOJ is ready to make its best efforts to support the sound development of fintech.
At a fintech seminar hosted by the bank, BOJ Governor Haruhiko Kuroda said that the central bank may apply financial technology to its operations in the future given its increasing impact on global payments, settlements and financial services.
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He added: “The BOJ is ready to make its best efforts to support the sound development of fintech to enhance the welfare of financial service users as well as economic activities”.
Financial Technology, or fintech as it is widely known, involves newly enabled technologies which companies make or use to make financial services more efficient. In recent times, the term has expanded to include any technological developments in the financial sector, including innovations in retail banking, investment and crypto-currencies such as bitcoin.
A slow adopter of the fintech revolution, Japan is making moves to ease investment restrictions that could free up the flow of capital in an economy which is estimated to be sitting on $9 trillion in individuals’ cash deposits.
Facing the pressure of weak loan demand, megabanks see an opportunity to earn money through fintech, although they are also aware of its potential to disrupt traditional business models.
In April, the BOJ established a section in charge of fintech to offer guidance to financial institutions seeking new business opportunities.