In an effort to provide a framework that will enable industry startups to test innovative financial services, Japan’s financial regulator is set to establish a stand alone financial technology hub.
A report in the Japanese financial publication «Nikkei» reveals that Japan will soon install a testing hub for financial technology startups and related companies to trail new services.
Established by the Japanese Financial Services Agency (JFSA), the hub will help enable developers and regulators to understand hurdles in the way of the financial technology industry’s growth and identify legal concerns that need to be adhered to.
Active Blockchain Experimentation
Expected to launch as quickly as this summer, the new fintech hub is likely to be the predecessor of a regulatory sandbox which Singapore, Australia, Malaysia and the U.K. have already initiated.
The JFSA is also working with the Japanese Bankers Association (JBA) in shaping its fintech approach.
The JBA, a working group of all 252 domestic and foreign banks in Japan, is already experimenting with financial technologies with the development of a common blockchain platform to be used by the country’s banks for domestic money transfers.
Cultural and Psychological Change
While Japan is undoubtedly a leader in adopting technology across most industries, it may take time for fintech to truly permeate into the society.
Cash is king in Japan and will continue to be so for the time being and despite the vibrant financial technology innovation scene in the country, it may need a total rewiring of citizens mindsets on money for fintech to be fully adsorbed.
