FINOLAB: DRIVING INNOVATIVE STARTUPS IN FINTECH IN ASSOCIATION WITH
FINOL AB Inc.
DIGITAL REPORT 2020
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FINOLAB: DRIVING INNOVATIVE STARTUPS IN FINTECH
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FINOLAB INC.
Makoto Shibata, Head of FINOLAB, CCO at FINOLAB discusses the company’s efforts to support startups and how it is disrupting the fintech industry
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efore joining FINOLAB, Makoto Shibata, Head of FINOLAB, CCO at the business, had worked in banking and finance for
many years. “I have spent almost 20 years in digital banking, digital innovation and financial services. 04
I joined FINOLAB in April 2019 with the aim of leveraging my years of experience within the digital banking and innovation space to support startups and corporate members within FINOLAB,” says Shibata. “When I started my career in the industry, online banking had just started. I have seen how online banking and mobile banking have evolved over the years, in particular how smartphones have changed the ways in which customers interact with their banks, and the ways in which new entrants into the sector look to penetrate the market and build relationships with their customers.” Shibata describes FINOLAB as a fintech incubation office that supports 56 startups with 17 corporate members. “We not only support startups, but we try to connect those startups with corporate members, so that they can pursue their open
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2019
Year founded
$3mn
Estimated revenue in US dollars for FY2020
20
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“ In 2017 fintech investments into startups in Japan reached US$105mn, in 2018 it rose to US$542mn, which is about 1% of the global figures, and it is continuing to grow” — Makoto Shibata, CCO, Head of FINOLAB
innovation initiatives,” says Shibata. “I believe that we are unique because we are located in the heart of the financial district, making us very accessible for all, including large financial institutions, financial people and startups. FINOLAB was created in 2016, and has had the support of Dentsu Group, the biggest advertising group in Japan, and Mitsubishi Estate, the biggest real estate company. “From these two groups, ISI Dentsu and Mitsubishi Estate have become our shareholders, they have made the investment for making FINOLAB sustainable to support startups and corporate members on a long term basis. So, while we are an independent public company, we are supported by two large companies.” Currently within Japan, “the Fintech industry is growing”, states Shibata. “In 2017 fintech investments into startups in the nation reached US$105mn, in 2018 it rose to US$542mn, which is about 1% of the global figures, and it is continuing to grow. There is also a big appetite for these financial institutions to promote digital transformation, something which I believe we still have room to grow within Japan,” adds Shibata.
FINOLAB: Japan’s first Fintech hub in Tokyo’s financial district CLICK TO WATCH
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07 To drive this growth FINOLAB has been collaborating with startups and
initiatives within the financial industry.” Since becoming independent,
large financial institutions to accelerate
Shibata explains that the company has
innovation. “There are many disruptive
been adopting digital solutions from
initiatives happening within Japan at
multiple startups to become the case
the moment. For example, there is a big
study for startups to make their opera-
drive towards a cashless economy, in
tions more efficient with their digital
which the government is promoting the
solutions. “For example, when it comes
use of digital transactions. FINOLAB
to identity management, accounting,
supports these initiatives by partner-
payments or invoice management, we
ing with startups who use cashless
have been adopting these solutions from
solutions, as well as working with insti-
startups, and by constantly adapting
tutions who are looking to collaborate
these solutions we are trying to make
with cashless startups. We also work
our own operations a testbed for
as an enabler to promote disruptive
them. At the same time we maintain w w w.f i no l ab . co. jp
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transparency to all startup members so
experiences with our startups to apply
that they can learn from what we have
big data and robotic process automa-
been using in our daily operations.”
tion to other areas. We have access
Currently, FINOLAB has limited
to major plays within these emerging
use cases of innovative technology,
trends and have been accumulating
however, some it uses include cloud
case studies within our ecosystem.”
and artificial intelligence (AI). “We learn
Since its establishment, FINOLAB
from different cases within our com-
has helped startups to raise funds and
munity, for example we are using cloud,
provide them with a work environment.
which we have partnered with Amazon
“As part of our support we provide
Web Services, which provides consult-
office environments and facilities so
ing services to our startups. Meanwhile
that startups can come in and start
for AI, we have several startups within
their business. In addition to physical
the community, we share ideas and
support, we connect startups with
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E XE CU T I VE PRO FI LE
Makoto Shibata Mr. Shibata is currently in charge of FINOLAB community operation. In his former position at The Bank of TokyoMitsubishi UFJ, he was leading R&D initiatives in emerging technology and online/mobile financial service. He also held positions in corporate planning, accounting, corporate finance and retail customer services at the bank. He is one of the founders of FINOVATORS and Executive Fellow at Japan Digital Design. He holds a Bachelor of Economics from University of Tokyo and a Master of Science in Development Economics from University of Oxford.
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suppliers and professional advice. We have a mentor group called FINOVATORS, this group consists of lawyers, bankers, venture capitalists, ex government officials and technological experts to connect startups with different stakeholders.” One example of collaboration was between our startup member CAULIS and our corporate member Seven Bank. They together collaborated with The Kansai Electric Power Co. to implement Fraud Detection for Account Opening Using
“ I think our biggest success has been the recognition that FINOLAB has received within the fintech industry in Tokyo” — Makoto Shibata, CCO, Head of FINOLAB
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“ We not only support startups, but we try to connect those startups with corporate members, so that they can pursue their open innovation initiatives” — Makoto Shibata, CCO, Head of FINOLAB
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Power Supply Information. Since many fraudulent accounts are opened at banks using empty house address, they came up with the idea to use power supply data to judge whether the address used has a resident or not. The idea was developed, and they applied for the regulatory sandbox as it was not clear whether an electronic power company can provide information of individual households. And, after testing in the sandbox, they were legally granted to implement. It was one of the early cases of making use of sandbox, and FINOLAB and FINOVATORS supported their collaboration process. Reflecting on the company’s operations, Shibata believes its biggest strengths are its geographical locations in the heart of the financial district that connects all of its stakeholders to the fintech industry. “I think our biggest success has been the recognition that FINOLAB has received within the finTech industry in Tokyo,” he concludes.
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FINOLAB INC. OTEMACHI BUILDING 4F, 1-6-1 OTEMACHI, CHIYODA-KU, TOKYO JAPAN 100-0004 T +81-3-6269-9208
www.companywebsite.com
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