Hitachi Review

Digital-driven Financial Innovation -FinTech & Beyond-

Volume 66 Number 1 January 2017

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Hitachi Review

Digital-driven Financial Innovation -FinTech & Beyond-Volume 66 Number 1 January 2017

The emergence of highly convenient financial services epitomized by the term “FinTech” is driving major changes in consumer awareness. Meanwhile, advances in digital technology are giving rise to innovation and competition on a global scale in a variety of fields. This issue covers initiatives aimed at achieving digital financial innovation, with a particular focus on presenting possibilities that draw on the technologies and know-how of Hitachi and its links with a wide range of customers.

Technotalk

Understanding the Essence of FinTech and Leveraging It for Innovation in Finance

As use of smartphones spreads throughout society and rapid progress is made in technologies such as big data and AI, there is rising interest in FinTech, which creates new services that combine these information technologies with financial services.

Hitachi is focusing on the financial sector as one of the core areas of its Social Innovation Business.

From the Editor

Toshiaki Tokunaga

Along with the key topic of financial technology (FinTech), the information technology (IT) and business models used for financial services have become topics of unprecedented interest. Although people are familiar with financial IT in terms of bank automated teller machines (ATMs) and making payments at branches and over the Internet, news articles about system consolidations taking place as a result of bank mergers are not something that particularly excite the interest of ordinary consumers.

Expert Insights

Blockchain is Here for the Enterprise:The Hyperledger Project

We are about to see a complete transformation in the way we exchange and track data and assets across industries. Creating standards for a cross-industry distributed ledger has the opportunity to revolutionize the way we do business, increasing trust, accountability and transparency while simultaneously streamlining business processes. With distributed ledgers, virtually anything of value can be tracked and traded and in a permanent, secure way that makes it easier to create cost-efficient business networks without requiring a centralized point of control.

Overview

Digital-driven Financial Innovation and Hitachi’s Involvement

SINCE the introduction of a negative interest rate policy, Japanese banks and other financial institutions have been facing a downturn in their revenues due to lower lending rates and investment yields, with many predicted to declare losses or lower profits for the fiscal year ending in March 2017.

Faced with this business environment, many financial institutions have adopted the use of financial technology (FinTech) as their immediate strategy, while boosting non-interest income and the use of information technology (IT) for operational efficiencies.

Featured Articles Ⅰ

Forms of Financial Innovations Driven by Advanced Digital Technology

FinTech Accelerating with Growing Digitalization
Keiichi Shimada, Yoshiyuki Yamamoto, Kenichi Suzuki, Ippei Nishida
Creating Blockchain-driven Financial Services and Business Models
Hirofumi Nagano, Yuuki Hara, Satoshi Oshima, Ippei Nishida, Toshiya Cho
Work on the Potential and Challenges of Blockchain Technology
Nishio Yamada, Miwa Tsukuda, Jun Nemoto, Ken Naganuma, Nao Nishijima, Tatsuya Sato
Work on Applying AI to Financial Institutions
Norimasa Nakata, Jun Yoshida, Masayuki Nakagawa, Yoshiyuki Kobayashi
Creating New IoT-driven Insurance Services
Takahide Shinge, Genta Nishikawa, Masataka Araki

Featured Articles Ⅱ

Using Collaborative Creation with Customers and Digital Technology to Produce Financial Business and Boost its Efficiency

Development of Financial Solution Concepts through Collaborative Creation with Customers
Yuuki Hara, Taiki Sakata, Hirofumi Nagano, Takuya Akashi
Convenient Cash Card Services in the Era of Mobiles and Smartphones
Hiroyuki Hatanaka
New Branch Strategies for Branch Styles that Adapt Flexibly to Customer Needs
Takeshi Shirai, Takashi Yamagishi
Proposal to Financial Institutions for New Contract Customer Acquisition Support Using Human Networks
—Technology for Identifying and Visualizing Introducer Models—
Yukinori Terahama, Shigeru Suzuki, Kazuyuki Iida, Tomokazu Sakai

Featured Articles Ⅲ

Platforms that will Underpin Digital Financial Innovation

Digital Innovation Platform and Its Application for Financial Services
Kiyoshi Takahara, Nobuaki Kohinata, Mitsuyasu Iwata, Takeshi Yoshikawa
Development of New Enterprise Applications to Achieve Financial Innovation
Gaku Saito, Hideki Sakurazawa, Tomonori Nakamura, Kunihiro Muto