Market Trends of Japan Trade Finance Industry
Digitization is Boosting the Market
Technology will continue to support a large portion of Japan's economic rejuvenation. Giving digitization top priority across the economy can boost productivity and income in already-existing enterprises and create new company prospects. Artificial intelligence (AI), for instance, can boost accessibility for senior customers in the finance sector and unleash operational efficiencies in the mobility and construction industries. Supply chain operations may be enhanced via blockchain. Technology and satellite data can also boost decades-old methods' efficiency in more traditional industries like agriculture, forestry, and fisheries.
Developing 5G infrastructure and 6G technology research and development for industrial applications will be crucial. To help it reach its digital goals, the Japanese government set up a digital agency to promote digitalization throughout the government and public sector.
By putting their digital changes into practice, banks can serve as role models for how to speed up the nation's digitalization aspirations. Additionally, to supplement the numerous government support programs aimed at SME digitization, they can acquire digital capabilities relevant to priority industries and offer loans to SMEs for digitization purposes.
Banks in the Service Providers Segment is Driving the Market
In Japan, banks traditionally had a unique function that extended beyond financial and economic considerations to include societal service. This dual mission could become more crucial as Japan sets its journey toward future development.
Japanese banks currently play the traditional roles of the lender, wealth creator and guardian, trading partner, and facilitator of capital markets. In the years leading up to 2030, these jobs will change due to the government's plan, and banks can become more involved in two additional positions: ecosystem orchestrator and policy advisor. Particularly since the banking law revision in November 2021, certain Japanese banks strived in these areas, for instance, by introducing healthcare-related services and increasing assistance for SMEs.
Banks will make conducting business in Japan easier as the country seeks to expand domestic and international trade between now and 2030. Distributed ledger technology (DLT), such as blockchain, drew the majority of attention in this field because it promises to be more effective at facilitating commerce, supply chain finance, and immediate payments. Japanese banks can learn from other international banks, which now provide transaction banking services through various technology-driven solutions, as they invest in technology to simplify things for consumers.
