Recently, there has been a noticeable increase in the emergence of FinTech services. New FinTech companies are created every day and in fact, in Japan, there has been an evident influx of startups in this industry. In order to understand this developing area and the new companies engaged in it, our team has decided to categorize startup FinTech companies into these three categories:
Payment processors are developing services that enhance the convenience of daily life through fast and easy payments. Japan is one of the countries with the most number of people who are, unfortunately, still using cash for purchases. There are, however, some developments such as the use of QR codes, mobile applications, and IC cards to facilitate cashless payments.
The corporate bond ratio in Japan vs. its GDP is only 11% while in the US, it is almost 45% of the market. Further, in Japan, 80% of investments are from banking institutions and 20% are from corporate bonds and equities while in the US, it is exactly the opposite: 20% from financial institutions and 80% from corporate equities and bonds.
In this regard, FinTech startups in Japan are now focusing on two primary functions:
Making equity trading and investing more accessible to the public by creating an online platform via the internet. This would allow anybody to directly invest in corporate bonds and stocks, which used to be unavailable to consumers in the past.
Utilizing automated and complex algorithms to simplify a processes that would typically require the need for fund managers. Companies are now moving towards a direction which involves investing and increasing assets through automated technology without relying heavily on fund managers.
BitCoin is clearly one of the most famous cryptocurrencies out there. As such, companies are working on platforms that integrate Bitcoin into its payment system. Some FinTech companies are also aiming to create a Cryptocurrency Exchange in Japan involving the creation of a regional version of the currency as well as other means to handle currencies that utilize blockchain technology.
All FinTech startups utilize the following:
Frontend: React/Redux, TypeScript/Webix, OpenAPI
Backend: GoLang or Scala (backend is built and operated using Ruby and Python)
Infrastructure: Mainly uses cloud such as AWS/GCP and is also doing it as micro-service with Docker/Kubernetes, and SRE method
The requirements for most positions in FinTech are:
Backend: Both “Script” + “Static Typing” programming languages experience will be the best
Infrastructure: Any public cloud experience is a MUST, have experience in Docker/Kubernetes, Terraform is a huge plus
DevOps: DevOps experience with Git, Chef, Jenkins tools is a MUST (and that’s what a DevOps engineer does)
If you have experience in the mentioned programs or if you’re passionate about FinTech and are willing to hone your skills in this growing industry, please contact our specialized Consultants in the FinTech team.