Japanese banking and financial services provider Nomura has announced that it is setting up a Financial Innovation Office, to start operating from December 1, as part of its efforts to make the best of fintech innovation advancements.

Technology innovation is quickly turning into a focal point for the industry

The bank said in a statement that the new structure will combine its efforts with its FinTech Committee to exploit investment and research opportunities in the area.

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Fintech Is an Important Tool

Nomura noted in its press release that financial technology is an important tool that can enhance its competitive advantage, by way of sponsorship of industry events that promote innovation and investment in relevant research. One aspect of these efforts is support for fintech startups in Tokyo, with the objective of enhancing the city’s reputation as a major financial services hub.

Growing Trend

Nomura’s announcement comes shortly after a similar one from Rakuten. The major internet provider has set up a $100-million fund specifically aimed at supporting startups in the fintech field. Unlike Nomura however, Rakuten is not just focusing on Japan; its Rakuten FinTech fund will seek investment opportunities mostly in Europe and the US.

The two Japanese companies are part of a growing trend among banks and financial service providers to jump on the fintech wagon in a bid to improve revenues and returns in a pretty hostile post-crisis environment fraught with regulatory challenges and a whole new kind of competition: internet service providers expanding into fintech.