Summary

　The growth of internet banking is decelerating. This deceleration is also occurring in online trading and internet insurance criteria, indicating that digital financial services as a whole are losing momentum.
　However, new types of financial services, including paying with points or e-money as well as payment services offered by convenience stores, are accelerating. Characteristics of these services include lower usage risks (a sense of security) and easy operations (high convenience).
　The popularity of FinTech services, which financial institutions have been focusing on in recent years, could be disrupted by a sense of insecurity as well as inconvenient operations just like those perceived in digital financial services. These issues are not easily overcome, because the flip side of strengthening security to alleviate users' worries, including information leakage, could further complicate. In other words, these two aspects are in a trade-off relationship.
　Broader uses of digital financial services require resolving Japan's Galapagos Syndrome regarding financial services, which points to excessively developed ATM services and the cash settlement society. To resolve such issues, we require breakthrough measures to develop financial services that guarantee users' comfort in accordance to the financial literacy of the Japanese people, to develop services focused on the next generation customers, and to seek prices that compensate customer convenience.

Contents

1. Digital Financial Services are Slowing
2. Traps Waiting for New Financial Services Such as Fintech
3. Breakthroughs in the Galapagos Syndrome of Japan's Retail Financial Services

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