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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


Jan. 2020

Open APIs are essential to Japanese banking innovation

Hideki Osawa

Over 18 months have passed since Japan amended its Banking Act to promote banking APIs (application programming interfaces). While Japanese banks appear to proceeding apace with API deployments according to survey data, they have not bought into open APIs entirely. They need to reaffirm open APIs’ value as an innovation driver.

Asset Management

Nov. 2019

Alternative data use in real estate analytics

Tomohiko Taniyama

Real estate decision-making has been largely dependent on gut instinct because of data availability constraints. However, with real estate practitioners turning to alternative data in recent years, real estate analytics capable of instantly and accurately identifying future real estate risks and previously overlooked opportunities are becoming an increasingly realistic prospect.

Asset Management

Oct. 2019

Index fund cost comparison between Japanese DC and DB plans

Hisashi Kaneko

Defined contribution (DC) pension plans have long had a reputation for being more expensive than defined benefit (DB) plans in terms of asset management fees. Today, however, DC plans in Japan are approaching cost-wise parity with DB plans, at least for passively managed assets, by virtue of participant-friendly regulatory policies that have driven down index fund fees in DC plans.

Digital Innovation

Sep. 2019

Facebook's Libra: design and potential shortcomings as a means of digital payment

Kazuhiro Sudo

Facebook created a big stir globally when it announced plans to issue its own cryptocurrency, Libra. Libra is designed to meet the minimum requirements of a means-of-payment currency–price stability, scalability and privacy–but it may need more work both technologically and on the regulatory front.

Digital Innovation

Aug. 2019

Is Japan on the right track toward legalizing digital currency paychecks?

Katsutoshi Takehana

In the government’s 2019 growth strategy, a deregulatory initiative to legalize use of digital currencies to pay wages and salaries has made major strides since last year. In designing the forthcoming regulatory framework in detail, the government needs to set pragmatic rules aligned with actual practices.

For Management at Financial Firms

Jul. 2019

Regional bank consolidation will not solve Japan's deposit glut problem

Katsutoshi Takehana

The Japanese government is preparing to enact legislation to promote consolidation among regional banks. While such legislation would be a key step toward rectifying Japan’s overpopulation of banks, Japan's deposit glut is a more serious problem from a long-term perspective.

Digital Innovation

Jun. 2019

Regulatory reforms are tailwind for one-stop online financial services

Katsutoshi Takehana

Japanese FSA’s Financial System Council is discussing potential changes to laws and regulations regarding cross-sectoral financial service intermediaries. If the changes come to fruition, financial services should become more conveniently accessible via mobile apps.

Digital Innovation

May. 2019

Keys to success in Japan’s crowded payment app market

Daisuke Tanaka

Japan’s payment services market is crowded with mobile payment apps that use QR codes or barcodes as inputs. The companies that have released such apps are spread across various sectors. They are providing payment services by combining point-of-sale (POS) payment technologies with settlement channels. Competition to capture users with generous point rewards is underway. The players best able to find ways to attract users and merchants should emerge as winners.

Asset Management

Apr. 2019

Alternative data use in asset management and its implications for Japan

Takeshi Shimamura

Use of alternative data in investment decision-making is growing rapidly, mainly in Europe and the US. Alternative data use is most prevalent in the quant hedge fund community, but even some traditional asset managers are using alternative data in the aim of qualitatively improving human investment decisions. Japanese asset managers must step up investment in alternative data utilization to remain competitive.

Digital Innovation

Mar. 2019

Impact of legalization of digital currency paychecks

Katsutoshi Takehana

The Japanese government is currently moving toward lifting a ban on paying wages and salaries with digital currency. If it decides to do so, the move could dramatically reshape the financial service supply structure beyond just diversifying wage/salary payment modalities.