As fintech upends banking, Japan regulator expects more cross-boundary tie-ups

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As fintech upends banking, Japan regulator expects more cross-boundary tie-ups
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TOKYO: Japan will likely see more financial tie-ups that extend beyond traditional boundaries similar to those signed between internet banking ...

TOKYO: Japan will likely see more financial tie-ups that extend beyond traditional boundaries similar to those signed between internet banking giant SBI Holdings Inc and regional banks, the country's senior financial regulator said.

Years of ultra-low interest rates and a dwindling local population have hurt profits of regional banks, prodding some to consolidate or sign business tie-ups with each other to survive. Kurita said while consolidation is among options, it was not the only way for regional banks to survive."I don't think it's a question about the number of banks," he said, when asked whether Japan's regional banking industry was over-crowded."What's important is for each regional bank to be clear about what business model it is pursuing."

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