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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

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.

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.