Consolidation, Financial Innovation and Chances for Internationalization in Japanese Banking
Senior Economist Martin Schulz
- Japan’s financial markets have become even more concentrated and dominated by a few mega-banks. This, and the low level of investment during the financial market crisis, hampered the development of significant financial innovation. But after banking consolidation, the focus of the financial industry is shifting towards developing Japan’s “under-banked” and under-serviced retail banking market. On the basis of the current deregulation of non-bank financial services, the boom of e-money and e-commerce technologies might result in integrated, innovative banking platforms that could provide a basis for successful international expansion in East Asia.