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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

Capital Markets

Jun. 2017

BOJ needs to do another comprehensive assessment

Katsutoshi Takehana

With market participants’ monetary policy outlook increasingly diverging from the BOJ’s guidance, the BOJ needs to get back to basics. It should comprehensively assess how prices are set to broadly enlist private economic actors in pursuit of its inflation target.

Retail Business

Jun. 2017

Digital financial services in a lull

Makoto Nakagawa

Previously robust growth in online banking and other digital financial services has distinctly stalled. To further expand their usership, digital financial services must offer benefits beyond mere convenience and should be marketed through promotions tailored to customers’ life
stages.

Financial Infrastructure

May. 2017

Robotics/AI an increasingly potent lever to boost operating efficiency

Keiko Kataoka

Financial institutions have recently been actively embracing robotics and AI to improve back-office efficiency. This trend is driven by both financial institutions' growing need to increase cost-efficiency and improvement in robotics/AI technologies’ practical applicability.

Asset Management

Apr. 2017

Expectations for Japan-domiciled foreign-denominated funds

Tomoko Koga

Domestically domiciled foreign-denominated investment trusts are seen as a promising fund product that meets the needs of Japanese financial institutions, particularly banks. They also offer dividend tax advantages. While such funds can already be offered privately, several issues currently prevent them from being publicly offered to retail investors. These issues will hopefully be resolved so that foreign-denominated funds become a reality in Japan and gain popularity even overseas.

Asset Management

Mar. 2017

Will fund passport catch on widely in Asia also?

Yuya Kubotera

Asian countries are preparing to launch the Asia Region Funds Passport(ARFP) scheme to allow funds registered in ARFP-participant countries to be sold in other participant countries. Although the AFRP faces hurdles, it is expected to invigorate markets by facilitating cross-border fund sales among participating countries.

Financial Infrastructure

Feb. 2017

Regulatory sandboxes are going live

Ryoji Kashiwagi

Regulatory sandboxes are gaining popularity as a framework for promoting financial innovation by cordoning off a sort of “safe space” for testing new business ideas within an existing regulatory regime. Regulatory sandboxes are expediting the financial sector’s shift toward more consumer-responsive business models in the aim of better serving customers.

Financial Infrastructure

Oct. 2016

FinTech is key driver of financial inclusion

Ryoji Kashiwagi

With better access to financial services widely recognized as essential to reducing poverty, financial inclusion has been gaining importance on the global policy agenda. Governments and international institutions have been pursuing FinTech-enabled initiatives to promote financial inclusion in recent years. Financial inclusion will likely remain a high-priority policy objective in not only developing countries but developed countries also.

Financial Infrastructure

Oct. 2016

Investment banks embrace collective reference-data utility model

Ken Katayama

Faced with a challenging business environment, major investment banks have been pursuing improved efficiency and risk reduction by teaming up with each other to establish reference data utilities. Data management expertise is now more crucial than ever.

Risk Management

Takaaki Kobayashi

Sep. 2016

Global financial institutions' data governance:
implications of EDM Council data management survey

Takaaki Kobayashi

The Basel Committee on Banking Supervision's "Principles for effective risk data aggregation and risk reporting" mandate that data governance regimes be established by not only G-SIBs but also major insurers and major regional financial institutions. A data governance survey of European and American financial institutions has revealed that data lineage mapping is a bottleneck impeding data governance upgrades.

Brokerage Business

Aug. 2016

Utility services' significance for T+1 settlement of JGB trades

Shigenobu Kimura

JGB market participants have been ramping up preparations to migrate to a T+1 JGB settlement cycle, the biggest change to Japan's securities market plumbing in recent years. Operating models that utilize utility services are emerging as a means of maintaining competitiveness.