Tokyo has been lagging behind Singapore and Hong Kong in financial technology, however the Japanese government has finally passed a bill which is expected to spur fintech activity in the country.
Japan's Diet has at last passed a bill which approves legislation aimed at supporting growth in Japan's financial technology sector. Fintech innovators and startups hope this now clears the path for banks to work with and acquire more technology-driven startups.
Unlike other Asian financial centres at present Japanese banks are not allowed to own more than 5 percent of so called non financial companies. The threshold is set at 15 percent for bank holding companies.
Time to Catch up
The new revision to the Japanese Banking Law relaxes this rule, pending case-by-case government authorisations, if the funds are directed toward enhancing financial services through the use of information technology, fintech.
The major Japanese banks have been working behind the scenes in preparation for the change in legislation and are now expected to aggressively catch up on the other hubs in the region, Sydney,Hong Kong and Singapore.
