Skip to main content
SpringerLink
Log in

The Future of Fintech in the Context of the Japanese Main Bank System

  • Chapter
  • First Online:
Transforming Japanese Business

Part of the book series: Future of Business and Finance ((FBF))

Abstract

This chapter contemplates the future of Fintech in the context of the Japanese main bank system with the focus on the nontechnical side of Fintech. It first explores the recent development and the current state of Fintech and examines it from the viewpoints of technology and banking for having balanced ideas. It then reviews relevant frameworks, including the theory of diffusion of innovations, as its research foundation of this study. To envisage how Fintech will be incorporated into the Japanese banking sector, it revisits the main bank system and identifies the intrinsic connection between the banking system and the existing collectivistic values as the influential attributes of the theoretical framework. A qualitative meta-synthesis shows that Fintech is likely to replace banking processes and products that are remote from the Japanese shared ways of thinking, while the MBS nature of relationship banking will remain in existence. The grounded element of the findings suggests that Japan’s strength is based on its collectivist culture, and Fintech will blend into the MBS over the course of its future development. This chapter concludes that Fintech is a supporting tool compatible with the core competencies of Japanese wealth creation, including the MBS, which supports Japanese business operations spanning worldwide.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 69.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Abegglen, J. C. (2006). 21st-century Japanese management: New systems, lasting values. Hampshire/New York: Palgrave.

    Book  Google Scholar 

  • Aoki, M., & Patrick, H. (Eds.). (1994). The Japanese Main Bank system: Its relevance for developing and transforming economies. Oxford: Oxford University Press.

    Google Scholar 

  • Buchanan, J., Chai, D. H., & Deakin, S. (2014). Agency theory in practice: A qualitative study of hedge fund activism in Japan. Corporate Governance: An International Review, 22, 296–311.

    Article  Google Scholar 

  • de Geus, A. (2002). The living company: Habits for survival in a turbulent business. In Boston: Harvard business review press.

    Google Scholar 

  • Drucker, P. (2005). My personal history, Nihon Keizai Shimbun. 28 December, 2005.

    Google Scholar 

  • Financial Conduct Authority. (2015/2019). Regulatory Sandbox. Available https://www.fca.org.uk/firms/regulatory-sandbox. Accessed 12 Apr 2019.

  • Finlayson, K. W., & Dixon, A. (2008). Qualitative meta-analysis: A guide to the novice. Nurse Researcher, 15(2), 59–71.

    Article  Google Scholar 

  • Gallego, J. A. (2015). Should Banks Fear Fintech? BANKNET. Available https://banknxt.com/53695/fear-fintech-startups/. Accessed 12 Apr 2019.

  • Hall, P. A., & Soskice, D. (2001). An introduction to varieties of capitalism. In P. A. Hall & D. Soskice (Eds.), Varieties of capitalism: The institutional foundations of comparative advantage. New York: Oxford University Press.

    Chapter  Google Scholar 

  • Hirota, S. (2009). Nihon no meen banku kankei: Monitaringu kara risuku hejji e. RIETI Discussion Paper Series 09-J-023.

    Google Scholar 

  • Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills: Sage.

    Google Scholar 

  • Holden, N. (2014). The consequences of culture in international business: A long overdue commentary. Journal of Business Anthropology, 3(2), 180–190.

    Article  Google Scholar 

  • House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.). (2004). Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand oaks, London. New Delhi: Sage Publications.

    Google Scholar 

  • Jacobs, M. T. (1991). Short-term America: The causes and cures of our business myopia. Boston: Harvard Business School Press.

    Google Scholar 

  • Kameda, N. (2013). Japanese global companies: The shift from multinationals to Multiculturals. Global Advances in Business Communication, 2(1).

    Google Scholar 

  • Kitamura, K. (2018). A definition of relationship lending in a global context: A study of the Japanese Main Bank system in the USA. Journal of Accounting and Finance, 18(10).

    Google Scholar 

  • Kitamura, K. (2019). A conceptual framework for managerial analysis under economic nationalism and globalization: A study of Japanese automakers in the USA. In H. C. Chandan & B. Christiansen (Eds.), International firms’ economic nationalism and trade policies in the globalization era. IGI Global: Hershey.

    Google Scholar 

  • Kitao, Y. (2018). Learning practical FinTech from successful companies. Hoboken: Wiley.

    Book  Google Scholar 

  • Learmount, S. (2002). Corporate governance: What can be learned from Japan? Oxford: Oxford University Press.

    Google Scholar 

  • Liker, J. K., & Morgan, J. M. (2006). The Toyota way in services: The case of lean product development. Academy of Management Perspectives., 20(2), 5–20.

    Article  Google Scholar 

  • Magnuson, W. (2018). Regulating Fintech. Vanderbilt Law Review, 71, 1167–1226.

    Google Scholar 

  • Ministry of Economy, Trade and Industry. (2018). Act on Special Measures for Productivity Improvement Enforced. Available https://www.meti.go.jp/english/press/2018/0606_001.html. Accessed 12 Apr 2019.

  • Miyashita, K., & Russell, D. W. (1994). Keiretsu: Inside the hidden Japanese conglomerates. New York: McGraw-Hill.

    Google Scholar 

  • New York State Department of Financial Services. (2018). Statement by DFS Superintendent Maria T. Vullo on Treasury’s Endorsement of Regulatory Sandboxes for Fintech Companies and the OCC’S Decision to Accept Fintech Charter Applications. Available https://www.dfs.ny.gov/about/statements/st1807311.htm. Accessed 12 Apr 2019.

  • Robinson, E. & Verhage, J. (2017/2018). Quicktake Fintech. Bloomberg. Available https://www.bloomberg.com/quicktake/financial-technology-companies-disrupt-comfy-banks-quicktake. Accessed 12 Apr 2019.

  • Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.

    Google Scholar 

  • Sako, M. (1992). Price, quality, and trust: Inter-firm relations in Britain and Japan. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Scher, M. J. (1997). Japanese Interfirm networks and their Main banks. Basingstoke: Macmillan.

    Book  Google Scholar 

  • Schwartz, S. H. (1992). Universals in the content and structure of values: Theory and empirical tests in 20 countries. In M. Zanna (Ed.), Advances in experimental social psychology (Vol. 25). New York: Academic Press.

    Google Scholar 

  • Shirota, M. (2016). Nihonban Fintech no Hookoosei: Oubei no Fintech karano shisa. NRI Innovation Symposium 2016. Nomura Soogoo Kenkyuusho. Available https://www.nri.com/jp/event/mediaforum/2016/pdf/forum241_05.pdf. Accessed 12 Apr 2019.

  • Sironi, P. (2016). FinTech innovation: From Robo-advisors to goal based investing and Gamification. Chichester: Wiley.

    Book  Google Scholar 

  • Skinner, C. (2018). Digital human: The fourth revolution of humanity includes everyone. Chichester: Wiley.

    Google Scholar 

  • Steers, R. M., Sanchez-Runde, C. J., & Nardon, L. (2010). Management across cultures: Challenges and strategies. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Teranishi, J. (1994). Loan syndication in war-time Japan and the origins of the Main Bank system. In M. Aoki & H. Patrick (Eds.), The Japanese Main Bank system: Its relevance for developing and transforming economies. Oxford: Oxford University Press.

    Google Scholar 

  • Thomas, L. G. (2018). The case for a Federal Regulatory Sandbox for Fintech companies. North Carolina Banking Institute, 22, 257–281.

    Google Scholar 

  • Trompenaars, F., & Hampden-Turner, C. (1997). Riding the Waves of Culture: Understanding Cultural Diversity in Business (2nd edition). London: Nicholas Brealey Publishing.

    Google Scholar 

  • Vänninen, I., Siipi, H., Keskisalo, M., & Erkkilä, M. (2009). Ethical compatibility of GM crops with intrinsic and extrinsic values of farmers: A review. Open Ethics Journal, 3, 104–117.

    Article  Google Scholar 

  • Walker, M. (2017). Seven Signs of Over-Hyped Fintech. LSE Business Review. Available http://eprints.lse.ac.uk/83237/1/LSE%20Business%20Review%20%E2%80%93%20Seven%20signs%20of%20over-hyped%20Fintech.pdf. Accessed 12 Apr 2019.

  • Walsh, D., & Downe, S. (2005). Meta-synthesis method for qualitative research: A literature review. Methodological Issues in Nursing Research, 50(2), 204–211.

    Google Scholar 

  • Waupsh, J. (2017). Bankruption: How community banking can survive Fintech. Hoboken: Wiley.

    Google Scholar 

  • Yoshino, S. & Ito, S. (2018). Kaigai jigyoo ni okeru nihon kigyoo no kadai to baryuu appu jitsugen no tame no apuroochi. KPMG Insight. KPMG New Letter Vol. 32, September 2018.

    Google Scholar 

  • Zavolokina, L., Dolata, M. & Schwabe, G. (2016). FinTech - What’s in a Name? In Proceedings of the 37th International Conference on Information Systems (ICIS 2016), AIS, Dublin, Ireland, December 11–14.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Finance and Management, University of London - SOAS, Torrance, CA, USA

    Kanji Kitamura

Authors
  1. Kanji Kitamura
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Kanji Kitamura .

Editor information

Editors and Affiliations

  1. Faculty of Business, Athabasca University, Edmonton, AB, Canada

    Anshuman Khare

  2. Faculty of Commerce, Osaka Gakuin University, Suita-shi, Osaka, Japan

    Hiroki Ishikura

  3. Graduate School of Management, Kyoto University, Kyoto-shi, Kyoto, Japan

    William W. Baber

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Kitamura, K. (2020). The Future of Fintech in the Context of the Japanese Main Bank System. In: Khare, A., Ishikura, H., Baber, W. (eds) Transforming Japanese Business. Future of Business and Finance. Springer, Singapore. https://doi.org/10.1007/978-981-15-0327-6_17

Download citation

Publish with us

Policies and ethics

Search

Navigation