Study Group on the Integration of Industry, Finance and IT (Study Group on Fin Tech) to be held.
The Ministry of Economy, Trade and Industry will hold a Study Group on the Integration of Industry, Finance and IT (Study Group on FinTech) to discuss in a comprehensive manner the possibility that innovative financial services using technologies including IoT technology, big data and artificial intelligence will generate new industries and significantly change the manner in which corporate finance is provided, in order to examine and review political challenges and related measures.
In recent years, a number of venture companies that provide innovative financial services using software technology, which is a field known as “FinTech” , have appeared and companies other than traditional financial institutions such as retailers, are seen providing new financial services.
This is due to the fact that technological innovation including IoT technology, big data and artificial intelligence have significantly changed the relationship between finance and industry, and the need for new, previously unheard-of financial services have been emerging. The Industrial Structure Council newly established the New Industry Structure Study Group, which has just begun discussing this potential transformation of the structure of industry.
The Study Group on the Integration of Industry, Finance and IT (Study Group on FinTech) will be convened in order to discuss, by examining global trends, the mechanisms which bring about this innovation which integrates industry, finance and IT, new industries, and the flow of capital, as well as to examine and review political challenges and related measures.
2. Participants in the study group and topics for discussion
- In order to develop a comprehensive understanding of the current situation and circumstances surrounding the field through a dialogue among a variety of players and experts concerned with FinTech and analyze from diverse perspectives, the list of participants is not fixed, but participants will be invited according to the needs of each topic (omnibus form).
※ See appendix for the participants in the first and second meetings.
- The subject of each meeting will be determined flexibly according to discussions since points at issue, hypotheses and problems are treated through discussion and dialogues at the study group. For example, currently, we may expect the following topics to be discussed; however we assume that these may change according to the progress of discussions.
(Examples of potential topics)
- Will FinTech generate new industries in Japan?
- Domestic and international trends, noteworthy fields, main players, and development potential in the future
- Progressive approach in the retail field including settlement, money transfers, etc., and impact on the existing financial services and infrastructure.
- What kinds of opportunities and threats will be generated with the rise of FinTech?
- Tension and cooperation between new players and existing financial institutions, possibility of building a new ecosystem in cooperation with venture companies, and development of environment
- Changes in the concept of what an appropriate balance between convenience and information security and privacy are, and development of an environment with this in mind
- Deployment of financial services overseas, a resulting increase in the number of users (financial inclusion), and impact on the financial infrastructure of Asia and other regions.
- How will FinTech change the way in which funding is arranged by companies?
- Impact on funding by global companies (automation and standardization of credit examination and rating function, diffusion of high frequency trading in financial markets, visualization of the global financial situation, etc.)
- Impact on the funding by local companies, small to medium-sized companies (diversification of funding means through crowd funding, commercial finances, etc., sophistication of financial management, etc.)
- Will FinTech change household asset building/allocation, currently biased to savings and deposits, or will it increase the supply of risk capital?
- How will risk management including insurance change when the way risks and information are managed change, due to IoT technology, big data and artificial intelligence?
- Shift to high functionality of automobiles, housing and buildings, and risk management
- Use of medical information/ genetic information and health risk management, etc.
- Will FinTech generate new industries in Japan?
3. Schedules in the future
(1) Date and time of the meeting
- First meeting: October 6 (Tue.), 2015 / 15:00 – 17:00
- Second meeting: October 16 (Fri.), 2015 / 13:00 – 15:00
※ It is planned that meetings will be held 2 to 3 times monthly. Subsequent schedules will be announced on the website.
(2) Topic to be discussed (plan)
- First and second meetings: Will FinTech generate new industries in Japan?
※ The same topic will be discussed at the first and second meetings but with different participants.
October 6, 2015
Division in charge
Industrial Finance Division, Economic and Industrial Policy Bureau