By Zhang Liping, Chu Xiaoyuan and Sun Fei, Research Team on “China’s Fintech Development: Status Quo, Future Performance and Development Strategies”, Research Institute of Finance, DRC

Research Report, No.111, 2021 (Total 6176) 2021-5-8

Abstract: In recent years, Japan’s fintech development has witnessed a fast growth in encrypted currency market, mobile payment, robot advisor and relevant sectors, generating a batch of enterprises specializing in these businesses. However, due to impacts exerted by population aging, traditional concepts and financial literacy, the application rate of fintech is relatively low in Japan. Generally speaking, Japan’s fintech development is mainly driven by supply side. Accordingly, the supportive policies for Japan’s fintech give a highlight to the supply side, and efforts are focused on refining the infrastructure and development environment for fintech innovations as well as on warding off risks. While on the demand side, Japan has not adopted any policy tools to promote related domestic applications. Rather, its priority lies in the protection of consumers’ rights and interests. There are evident differences between Japan’s supply-driven fintech development model and China’s fintech development performance based on rich application scenarios. But some of Japan’s experience is worthy of reference, such as bringing the role of emerging fintech companies into full play, the government’s positive and open attitude and the emphasis laid on warding off virtual currency risks and protecting consumers’ rights and interests.

Keywords: financial science and technology (fintech), supportive policies, pick up experience, Japan