The Impact of FinTech on Non-Financial Industries

The essence of FinTech lies in giving that little push.

Ueda: So, how will consumers' spending habits change? Also, what tangible effects have you observed on the ground?

Taki: Eight years ago, no one could have imagined smartphones becoming this ubiquitous. Yet today, life has changed so much that we genuinely couldn't survive without them.

Modern people see the revolutionary nature of smartphones, so they might expect the same to happen in finance. Unfortunately, that's a bit different.

I think new financial services act more like a gentle nudge, helping other services innovate.

Ueda: Do you want to foster greater expectations among users—ordinary consumers—for this new world of services?

Taki: I believe the general public is still largely unaware of this new world of services. Finance itself remains a supporting role. Most people probably don't have high expectations for it. However, low expectations mean the surprise when encountering such a service is greater.

For example, our automated household account book and asset management service, "Money Forward," started with almost no expectations, so users are genuinely surprised when they use it. This is because there's a basic, somewhat negative perception that household account books are a hassle. But the satisfaction level when the service works well is surprisingly high.

In about two to three years, we want to create a system that automatically links Money Forward—which already handles fully automated deposit/withdrawal data and balance checks—with users' savings accounts and investment trust accounts. This would automatically pool a predetermined monthly amount set by the user. Achieving this could mean users find they've saved 400,000 yen by year-end without even realizing it.

Ueda: So the key is creating surprise within consumers' everyday spending habits. How might sellers benefit from adopting FinTech?

Taki: Back in the day in America, there was a story about "credit cards falling from the sky." They weren't literally dropped from the sky; they were mass-mailed to people with good credit.

Many people used these credit cards for payments, but a huge number simply defaulted and refused to pay. Consequently, the person behind this strategy got fired from the bank within months. However, this strategy was widely copied across the entire United States.

Before that, consumers bought on credit. Stores would write down the records on paper, compile them, and at the end of the month, write invoices to each customer individually. They'd chase down those who didn't pay. Only then would they finally collect the checks. This actually required a tremendous amount of effort.

But when credit card companies emerged, the billing process that had previously been done for dozens of people could now be consolidated to just one company. They handled all the detailed accounting and billing work in bulk. This was a crucial point.

Ueda: About four or five years ago, a movement emerged in the energy sector—another social and living infrastructure like finance—claiming smart grids would revolutionize it. And this year, the liberalization of electricity retail finally begins. Money Forward has also formed a business partnership with an electric power company, right?

Taki: Yes. It's very simple: we're helping add an extra layer of enjoyment to a service that lets users view their monthly electricity usage data online.

People enjoy seeing data accumulate; they look at it thoughtfully, going "Hmm..." When they see information like "This month was ¥1,800 cheaper than last year," that "Hmm..." turns into "Whoa!" We also integrate information from points sites like T-Points and display it simultaneously. This mechanism visualizes the accumulation of small savings, allowing users to reflect on their frugal lifestyle.

One benefit of FinTech is that accumulating data makes it easier to track spending habits. Say you go out drinking with cash. You might have spent money while drunk, but you have no idea where or how much. That's where cards come in – transactions are recorded. Furthermore, FinTech simplifies these payments, enabling automatic tracking of every payment detail.

Ueda: You could compile it in Excel, but few people actually do that.

Taki: Honestly, keeping track of how many points you've accumulated in a table requires a strong obsession with saving. But with these services, you don't have to push yourself. By building systems like this with FinTech technology, even people who aren't hobbyist bookkeepers can discover ways to improve their lives.