Digital-driven financial innovation and Hitachi’s involvement
Faced with the current business environment, many financial institutions have adopted the use of financial technology (FinTech) as their immediate strategy, while boosting noninterest income and the use of information technology (IT) for operational efficiencies.
The term “FinTech” has in the past been mainly used to refer to startup companies, especially those that use IT to provide new financial services.
Now, financial institutions have also started to make moves toward actively working with FinTech startups that have sophisticated technology or services in order to take advantage of their respective strengths, with the aim of delivering highly convenient financial services.
Hitachi anticipates that the financial innovations made possible by digital technology will evolve through the following three stages:
- Stage 1: More efficient and convenient financial services
- Stage 2: More efficient financial systems and financial institutions
- Stage 3: Innovation in financial products and businesses Stage 3 is expected to involve the emergence of various service platforms, with digitalization spreading to all areas of society, and with finance, too, being required to incorporate digitalization into its products and services