Venture companies are driving financial innovation!

ISID is also dedicated to creating spaces that foster innovation. It's a place where startups and financial institutions meet, potentially giving birth to new businesses. We asked Mr. Tetsuo Iida and Ms. Chika Tachibana from the company's Financial Solutions Division to tell us what this place is really like.

What is the "Financial Innovation Business Conference," a major event in the financial industry?

――Please tell us about the "Financial Innovation Business Conference" (FIBC), an event planned and operated by ISID.

Iida: FIBC is Japan's only event dedicated exclusively to financial innovation. The first edition was held in 2012, and this year marks its third iteration. It primarily consists of two programs: demonstrations by companies undertaking advanced initiatives and keynote speeches by experts. Each year, it showcases the "current state of financial innovation." Tachibana, who handles planning and operations, will explain the details.

Tachibana: I'm Tachibana, responsible for promotions in the Financial Solutions Division under Iida. I've been involved with FIBC since its inception. The idea to create the FIBC event arose because, just as innovation is needed in finance, we felt our own activities required innovation. We wanted to effectively incorporate external movements to bring a fresh breeze to ISID while simultaneously contributing to the revitalization of the entire financial industry.

The main program features 7-minute demonstrations of advanced financial services, primarily from financial ventures. Rather than just explaining new services, we ask them to present in a state where the service is actually deliverable, using it in a way that allows us to envision real-world use cases. The first event featured 8 companies, the second and third each featured 12 companies. Afterwards, outstanding services were selected and awarded based on votes from attendees.

The defining feature of Iida FIBC is undoubtedly the gathering of financial venture companies, venture capitalists, and financial institution representatives under one roof. Previously, opportunities for venture companies and financial institutions to meet face-to-face and discuss innovation were virtually nonexistent. However, the creation of this venue has fostered face-to-face communication across corporate boundaries. We hear that these encounters have led to business partnerships and the launch of new ventures.

The Passion of Venture Companies Elevates Service Quality

――Among the companies that have presented so far, is there one that particularly stands out to you?

Iida: I was impressed by all of them, but if I had to choose, perhaps Zaim, who presented in the first and second sessions. They released a free personal finance app developed by an individual, then meticulously listened to user feedback and iterated through numerous revisions. They continuously incorporated requests into new features, refining it into an outstanding service supported by its users. Their drive and commitment to listening were truly admirable.

Tachibana: I heard they initially developed it on weekends while working at a company. But its ease of use became a hot topic, leading to explosive membership growth, which prompted them to transition into the company Zaim. Even now, as the CEO, they continue to evolve and provide the service.

Iida: Zaim succeeded because they started development not for profit, but driven by the desire to create "an easy-to-use service" and "software people would love to have." By staying true to that mindset and relentlessly prioritizing the user perspective, they grew into such a widely supported service. The creator's passion elevated the quality of financial services and eventually led to innovation. I thought it was a perfect example of that.

Tachibana: Also, Money Forward, which took first place this year, announced a web service that automatically acquires and categorizes deposit/withdrawal data from multiple financial institutions, centralizing accounting information management. Royal Gate, ranked second, announced a terminal enabling multi-payment with various e-money and cards. With the unique thinking of a venture, new services are being created one after another.

The Need for an Ecosystem Where Financial Institutions Acquire Venture Services

――How do you envision services born from FIBC growing in the future?

Iida: This isn't limited solely to services born from FIBC, but once venture-born services achieve a certain level of success and become established, I truly hope we see more cases where they partner with financial institutions or major IT companies.

As I mentioned in the first interview, financial institutions are in a difficult position where their social responsibility is heavily scrutinized. It's hard for them to generate new ideas or take on challenges, and they struggle to develop truly innovative services. That's where startups come in – they could outsource innovation. I believe consumers are generally more tolerant and willing to accept risks when it comes to venture services. If such services gain traction and succeed, it would be positive for financial institutions or major IT companies to partner with or acquire them, integrating them as mainstream services. This would enhance trust, allow users to utilize them with greater peace of mind, and help innovation become firmly established.

If this cycle takes shape, I believe the vision for successful services will become clearer, encouraging more startups to take on innovation. I sincerely hope an ecosystem like America's is established in Japan as soon as possible.