[Policy Advocacy] JANE presented its policy paper on the promotion FinTech at the Ministry of Economy, Trade and Industry

On July 28th, Mr. Yosuke Tsuji (Founder and CEO of Money Forward, Inc.; Executive Member of JANE and the Leader of JANE FinTech Promotion Taskforce) presented a policy paper on FinTech at the “Advisory Council on Challenges and Future Directions concerning FinTech” convened by the Ministry of Economy, Trade and Industry.

Download the proposal from here

[Summary of the recommendations]
Towards a realization of a smart financial nation: building an innovation-inducing society
1. Three objectives as a basic framework for promoting FinTech
Promote low-cost, secure, and user-oriented service
Create new flows of money that support economic growth
Build financial infrastructure and governance accessible to all
2. Simulation of quantitative impact of FinTech and an illustration of a Fintech-oriented future lifestyle
<Examples of quantitative effect estimates>
1.6-fold increase of personal spending
Annual total of 948 million hours saved for not having to physically visit bank branches
26 million increase of investor population
5.9 trillion yen-worth of improved productivity of the self-employed workers (enabled by cloud services)
Reduction of 4.05 trillion yen-worth per annum of accounting work at small and medium-sized companies
3. Suggestion of Key Performance Indicators (to be achieved by 2020)
<Example KPIs>
Promotion of cashless payments (100% acceptance rate by major facilities and services, less than 10% circulation rate of coins and banknotes against nominal GDP)
Enhanced productivity (ratio of corporations using online banking services, electronic tax filing rate of 100%, etc.)
Generation of new flows of money (increased investor population to 46 million, business startup ratio of 10%, expansion of the sharing economy market to a 10 trillion-yen level)
Building of financial infrastructure and governance accessible to all (More than 70% of people going online to handle most frequently used administrative procedures)
Building of institutional mechanisms to support innovation (100% opening up of necessary banking functions to API, elimination of face-to-face, stamp-requiring and paper-based procedures)
4. Basic Direction of Recommended Policy Measures
Promotion of data utilization as the foundation of FinTech as well as online and cashless settlement that enables automation
Examination and exploration of new methods of credit administration using sales distribution data and other cloud-sourced data, as well as of new legal frameworks that are in line with one-stop and other new types of financial services
Introduction of the Japanese version of a regulatory sandbox to encourage innovation