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Capital Markets & IT -lakyara

Financial institutions are under constant pressure to reduce costs, improve operational efficiency, adapt to regulatory changes and grow their business. NRI believes that a combination financial knowledge and information technology are crucial to the industry’s growth and development. Through our lakyara reports, NRI identifies the various capital markets and IT issues impacting our clients and the future of their business.
*Organization names and job titles are current as of the publishing dates

Latest Updates

Risk Management

Feb. 2019

Keys to an effective risk appetite framework

Hitomi Kawahashi

Major Japanese banks have been developing and implementing risk appetite frameworks (RAFs) since FY2013. Recently, even regional financial institutions are increasingly adopting RAFs. One lesson from early RAF adopters overseas is that an on-the-ground perspective is crucially important to developing an effective RAF.

Digital Innovation

Feb. 2019

Keys to successful IPA implementation

Keiko Kataoka

Intelligent process automation (IPA) has emerged as a way to automate processes too sophisticated for robotic process automation (RPA). What is IPA? What do we need to know to achieve successful implementation?

Capital Markets

Jan. 2019

Materiality in criminal misrepresentation in securities filings

Sadakazu Osaki

On December 10, 2018, Nissan Motor's former chairman Carlos Ghosn, another Nissan executive and Nissan itself were indicted for allegedly violating Japan's Financial Instruments and Exchange Act (FIEA) by filing Annual Securities Reports containing misrepresentations. With the media reporting conflicting accounts and the facts of the case yet to be spelled out in detail, it is too early to safely draw any conclusions about the allegations against Ghosn and his codefendants.

Asset Management

Jan. 2019

Resurgence in direct sales of investment trusts

MItsuo Fujimoto

Japanese asset management companies that sell their funds through distributors are starting to return to the direct sales channel. Their direct sales initiatives are targeted at younger demographics such as recent college graduates, but capturing young customers is not easy. It requires customer journey mapping and micro-targeted marketing through such means as social media advertising, telephone contacts with customers and educational seminars.

Digital Innovation

Dec. 2018

From Graphical to Voice Interface - financial institutions' expanding new channel

Atsushi Umakatsu

Voice user interfaces (VUI) are rapidly evolving in tandem with advancements in machine learning and AI. VUI services fit well into financial institutions’ omnichannel strategies. Overseas financial institutions have released apps that enable users to even make payments by voice command. Japanese financial institutions also are expected to offer more services.

Corporate IR

Nov. 2018

Cybersecurity's new borderless frontier

Masaki Nishitani

Cyberattacks have long been internationally borderless but various other boundaries besides national borders are now becoming blurred in cyberspace. Effective cybersecurity in a blurred-boundary environment requires the leadership of a full-fledged CISO.

Corporate IR

Oct. 2018

Quarterly financial reporting and management short-termism

Sadakazu Osaki

US President Trump recently tweeted in favor of allowing companies to report earnings semiannually instead of quarterly. Quarterly financial reporting is often criticized for encouraging short-termism among investors and corporate executives but empirical research conducted in the UK found no evidence substantiating such criticism. Regulators considering revising or discontinuing quarterly financial reporting should proceed cautiously without falling under the sway of specious
arguments.

Digital Innovation

Oct. 2018

XR technology's potential in finance

Makoto Shirota

VR, AR, MR and other variants of XR have long been high-profile technologies. While they are being used mainly in certain sectors, including travel, real estate and manufacturing, some interesting XR initiatives are afoot even in financial sector without visible products.

Digital Innovation

Sep. 2018

Coexisting with AI in the workplace: from RPA to DX

Etona Ueda

Effective use of AI can help alleviate impending labor shortages facing Japan and also contribute to reforming Japan’s workaholic office culture. AI’s impact will reverberate across essentially all white-collar occupations. When deciding how to incorporate AI into their operations, companies should set their sights on digital transformation (DX) that creates new jobs for humans through reengineering task flows.

Digital Innovation

Aug. 2018

AI use in the financial sector

Tatsuo Tanaka

AI is increasingly being deployed in the financial sector, particularly in areas such as risk assessment, financial market analysis and research and investment portfolio management. Currently used mainly to improve workflows, AI is expected to eventually be utilized in new businesses to be launched by financial institutions as they are compelled to play new roles.