FinTech Financial Institution IBM FinTech (IBM Japan, which connects financial institutions and different industries)
In this article, we will introduce the efforts of IBM Japan FinTech (Fin Tech), examples of freee and Zaim, and think about future collaboration with FinTech and other industries.
Table of Contents
Banks and Fintech companies can work together to leverage a common API that connects different companies and financial institutions. For example, at Zaim Co., Ltd., which provides an online household account book application, IBM is working on a common API that connects banks and Zaim.
Users can provide information during the financial period with Zaim and constantly check their bank accounts through Zaim on their smartphones. By doing this, the bank can know the trends such as what kind of money the user is spending. In addition, IBM, which provides a common API, has the advantage of referencing bank information.
It allows IBM to come up with ideas that create new value. For banks as well, business opportunities are created by connecting with new companies. The field of IBM’s Fintech is still in its infancy, and it is a field with great expectations for future development, such as the blockchain technology that IBM is working on.
IBM Japan and freee Co., Ltd., which provides cloud accounting software, are taking on the challenge of acquiring new customers through freee’s accounting software. By linking the accounting information of freee’s cloud accounting software used by companies with financial institutions, banks can grasp the accounting information of companies and provide various services and advice. IBM Japan’s common API plays a role in sharing one cloud accounting software between banks and companies and connecting them. IBM will also be able to analyze both data and create new value.
‘IBM Japan, which provides Fintech services, plays the role of connecting infrastructures, similar to blockchain technology’
In blockchain, it is responsible for connecting IBM_Blockchain_Platform with services such as Ethereum and Hyperledger_Fabric. IBM also provides a common API that connects financial institutions and businesses in the Fintec space. Here, financial institutions, business partners, and IBM Japan have their own merits and enable the creation of new added value (IBM Garage).
Why do companies have to create new values? That is because the present world is a turning point in the times. New services such as the fintech field, mobility, and supply chain fields are being created one after another. This is related to the birth of cloud services, IoT / AI, and blockchain technology.
There is a keyword of strong security there. No matter how good a service is, if it is vulnerable to security, the service will not work. What is the best security? The technology for is also advancing day by day. FinTech technology is also evolving on that parallel line.
IBM Japan was first mentioned here because it was IBM that set the standard for computers in the past, and various rivals were developing similar services, but the one that remained in the end was IBM.
Because there is a background. Today’s blockchain technology is also being researched and developed in collaboration with IBM and Ethereum to establish standards in the field. Similarly, in the field of fintech, IBM Japan, which provides reliable services and has strengths in terms of hardware, is truly one of the leading companies in fintech.
IBM Japan handles everything from large companies to servers and services in private stores. And we also handle personal rental servers. IBM Japan wants to leverage all of these resources to set a standard in the field of fintech. Therefore, financial institutions, IBM Japan, and other industries are sharing ideas.
Financial institutions that cooperate with fintech companies can provide new customers and services, but at the cost of having to concentrate people and money on fintech companies, which have many start-up companies, there is a risk. Until now, fintech companies could only “reference” the bank data of financial institutions, but from now on, it will change to “update type”.
With the renewal type, it is possible to entrust the processing of renewals that were processed by the bank to the outside. By doing so, the burden on banks is reduced, and personnel and costs can be reduced. This is also one of the creation of new values. Services such as FinTech and blockchain technology focus on this point. However, there are concerns about security and information transfer if the bank also entrusts all update processing.
In that case, it is necessary to share the processing of updates. That’s where IBM Japan comes in. There is a need for a more complex API instead of the previous API. It is IBM’s role to develop it. Even on the bank side, if the update process is performed via the cloud, it will be freed from the processing and equipment that was performed on-premises, and it is possible to significantly reduce costs. This is a risk for banks, but it is a big advantage. The future is definitely heading in this direction.
So, as I say many times, strong security is the number one issue. Currently, the consumption tax is 10%, and various point services and companies are linked to provide services. It is expected that these will also be connected to the common API of financial institutions and IBM, which will also create new business opportunities.
There are countless companies that offer point services, including those companies, financial institutions, fintech companies, and IBM Japan and other rivals that provide common APIs. Therefore, the challenge for IBM Japan is how to provide services, hardware, and software that are convincing. Since IBM is an international company, it will also be connected to those networks. IBM Japan is thinking about a common strategy for API banking, right now, involving the world.
So far, I have introduced IBM Japan’s fintech technology based on the cases of Zaim and freee. I also wrote that the importance of IBM’s common API technology and future relationships with financial institutions will change from the conventional “reference” to “update”. Occasionally, we see financial institution troubles, that is, cases where ATMs stop and cause social turmoil. This is caused by system update troubles or improper processing of the “update” mentioned earlier. Banks have been shuttering and post-processing since the evening on bank employees and large computers such as IBM.
The bank will process the update on-premises at night. There, deposits and withdrawals of the day and various bank data are updated, reflected the next day, and the next day’s banking is normal. In the future, with the involvement of companies in different industries, financial institutions, and IBM, as introduced earlier, it will change to off-premises, and renewal processing will be performed externally. This allows financial institutions to reduce costs. For that purpose, cloud technology and blockchain technology are also evolving day by day.
And the system that connects different industries and financial institutions called the common API, which is the important technology of IBM Japan in this article, will evolve more complicatedly. What happens there is the construction of a system that can perform safer and more reliable processing. The form of update processing as in the past should also change. However, as I wrote earlier, these technologies are still in their infancy. Even now, the technology called common API that connects various financial institutions and different industries is utilized to enrich our lives, but the real change is in the future. That is why financial institutions, companies and fintech companies are squeezing their wisdom.
IBM, a fintech company, is also responsible for creating new jobs in addition to traditional operations. IBM plays a fundamental role behind the system, but as a consultant, it also plays a role in proposing new businesses. Even the computer giant IBM is in an era of change. In the future, it is possible to have a common API process existing banks, such as blockchain smart contracts. Then, IBM Japan can utilize those technologies so as to link with blockchain technologies. The fusion of such technologies will create new services.
And engineers in the fields of fintech and blockchain will be needed more and more in the future. Therefore, it leads to the topic of programming education in elementary schools these days. Indeed, it is this fintech technology that is relevant to all ages, the services of the next era and new values. We will witness it in the future. And the roles of these companies are becoming more and more important and can get into our lives. At that time, nothing to know about information is a challenge not only for these companies, but also for us as individuals. The integration of these technologies is not limited to the field of computers.
For example, blockchain technology is also studying human psychology. What that means is that people will accept and take advantage of new technologies. We also thought that it was necessary to accumulate knowledge to make good use of these services in preparation for what would happen in the future, so this time we introduced IBM Japan. Thank you for reading to the end.