RegTech in Japan
Potential and needs

Overview
The Japanese government pushes for thequick implementation of RegTech services andproducts.
This impulse is backed by all major ﬁnancial
institutions, that see in RegTech and FinTech key
solutions to address systemic hurdles holdingback the national economy and generate highcosts.
A quick implementation of RegTech services
and products is one of the major goals of theJapanese government in order to create thenecessary environment for the adoption of
more effective FinTech services and improve
international competitiveness of Japan as place
to invest and do business.
All major public and private actors agree that IT
literacy and education is key to spreading theadoption and use of RegTech tools, among thepublic and private sectors but also large andsmall business as well as taxpayers.

TOKYOOSAKAFUKUOKAJapan
Pop : 126 mio
GDP :$4.841 trillion (3rd)Cashless potential :“While the general business environment is rather risk-adverse,
Japanese financial actors are aware that their main customer basewill dramatically change in the next 20 years, and that new, ITsmart customers will take over the current, elderly asset holders.
Such changes include switching to a cashless society (reduce relianceon cash and save up to 10 trillon yen of blocked value, and makeJapan more attractive to foreign tourists) and technologies that canguarantee the safety and security of such transactions.
Europe is a key example and partner for Japanese authorities in this
sector: The Bank of Japan launched a joint research on the use of
distributed ledger with the European Central Bank.

10 trillon yen« RegTech (…) is a concept not wellknown in Japan yet, but we think it is a
crucial one for the future of our country
and the world. (…) RegTech will change(them) to a great degree. »Naotoshi Okada,President and CEO, Nikkei Inc.

RegTech in Japan
Growth Potential

70%

70% of financial companies
plan to adopt blockchainbased solutions by 201967%67% of financial companies
are familiar with blockchainbased technology

There is a significant progression of collaborationof Japanese financial institutions with techcompanies: from 21% to 30% between 2016
and 2017.
Among the biggest motivation factors toadopt FinTech and RegTech solutions, Japanesefinancial institutions list:•••••

Reduction of personnel costs (e.g. need forfewer compliance personnel),
Reduction of IT infrastructure costs
Use of Big Data and analytics
Improvement of customer retention rate
Work efficiency improvement

91%

91% of Japanese financial
companies estimate that they
will collaborate with fintech
companies in the next 3-5years.

Some RegTech
Startups
ANNAI : UDAP - Universal Data Application

Platform
https://annai.co.jp/

Chain tope + A-zero: Regional creation by ICO topromote regional revitalization.
http://www.chaintope.com

Priorities of the Japanese government:•

Establishing a comprehensive IT
strategy implementing tools related toe-government, open government, opendata•

Adoption of cloud computing, andrenovation of the entire government
information system.

•Streamlining of IT infrastructure: Goingfrom 1’450 different IT systems inside thenational government in 2012 to 549 in
2021.
Goal: save up to 30% in operation costsin the central government and localmunicipalities (about 120 billion JPY forthe central government; 100 billion JPY
for local municipalities).

•Promote partnerships with private sector
to create services

GAIAX: Online identity confirmation API
http://trustdock.io/business/

Japan Legal Network: Automatically securesevidence of overtime hours using GPS.
http://legalnetwork.jp

KEYCHAIN: Keychain/Global data provenanceplatform
http://keychain.jp

LegSea: Contract preparation and electronic contractconclusion system on the cloud
http://www.holmes-cloud.com

Sound-F Japan: Enabling point-based coupons

deliver to wallet application on smartphones withblockchain technology
http://sound-f.jp

Opportunities for Swiss
Companies

RegTech as a core sector identified by the Japanese government and all major financial
actors to boost domestic economy.
1) A government aiming at becoming a world leader in the use of IT tech in its relations
with its citizens and corporate world.
2) Several industries with an urgent need for new tech solutions (security, Big Dataanalysis, cost control, efficiency, speed, lack of skilled human resources, etc.)
3) A fragmented market where smaller actors can create their own niche
4) A desire and need to create tie-ups with tech companies, including from overseas5) A necessity to adopt new, innovative technologies in the short term6) Excellent image of Switzerland

Want to Know More?
Contact us!

While this paper is intended to provide an overview of this specific market and its
opportunities at the time of its edition, each individual Swiss manufacturer and exportershould conduct their own research to get a better understanding of the possibilities andopportunities available.
Together with experienced industry specialists, the Swiss Business Hub Japan will help
Swiss and Liechtenstein companies explore and develop their chances based uponcustomized and in-depth analysis. We can open doors to the Japanese RegTech sector andyour potential partners.
Our team will help you decide on a suitable market strategy for Japan. We will prepare aservice package based on your specific requirements and business priorities.
Your Contacts :Claudio Mazzucchelli
Yumiko Kijima

Swiss Business Hub Japan

c/o Embassy of Switzerland
5-9-12 Minami Azabu, Minato-ku
106-8589 Tokyo Japan
tok.sbhjapan@eda.admin.ch
https://www.s-ge.com/en/company/swiss-business-hub-japan

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