Growth Opportunities in the Financial IT, Fintech and AI Markets

「In the financial services sector, our principal business area, opportunities to generate revenue are expanding against a backdrop of changes in the interest-rate environment and stock-market trends. At the same time, management challenges are diversifying, including higher deposit rates and market funding costs and intensifying competition for customer relationships. Regional banks in particular are seeing greater competition among services aimed at attracting deposits, collaboration among regional banks, and collaboration between financial institutions and IT and consulting companies. In the consulting field, initiatives involving AX (AI transformation) and DX (digital transformation), aimed at improving productivity and upgrading services, are spreading across industries, intensifying competition to capture this demand.」

「Across all industries, the pace of incorporating AX (AI transformation) and DX (digital transformation) into practical operations is accelerating. At the same time, interest is rapidly increasing in offensive applications, such as creating new services and value through AX and DX, as well as defensive applications, such as strengthening security and anti-money-laundering measures.」

「In recent years, consolidation and alliances have become increasingly active, particularly among regional banks, highlighting issues such as system integration and business process standardization accompanying management integration and business alliances. In addition to intensifying competition in services as customer needs diversify, responding to labor shortages and rising costs has become an urgent priority, driving growing demand for DX to improve operational efficiency and customer experience, as well as for the enhancement and automation of operations using AI.」

「Demand for DX, cloud and modernization* is expanding rapidly across the market, while the shortage of in-house IT personnel remains an ongoing issue.」

「In the financial industry, our main business area, earnings power is improving on higher interest rates and strong corporate demand for funds. Banks are shifting toward a more proactive stance, including opening new branches to attract deposits and new customers, and strengthening competitiveness through consolidation, alliances and other measures. Against a backdrop of growing interest in using generative AI in banking operations, we are also receiving inquiries about the applicability of our generative AI tools to banking operations. General operating companies are showing greater demand for services aimed at improving productivity in response to labor shortages and rising costs.」

「The government and the Bank of Japan have also indicated policies to support restructuring and IT infrastructure investment as part of efforts to strengthen regional banks' competitiveness, and system investment is expected to expand further. General operating companies are showing greater demand for measures to improve productivity and added value through DX as they respond to labor shortages, continued wage increases and higher costs resulting from rising prices.」

「In the financial industry, our main business area, expectations are rising for improved earnings power, particularly at banks, as policy rates increase. Banks are vigorously reviewing their strategies for a world with interest rates and pursuing efficiency gains through cloud adoption, DX and generative AI. General operating companies are also showing greater demand for measures to improve productivity and added value through DX as they respond to higher costs from wage increases and rising prices, as well as labor shortages.」

「In the financial industry, our main business area, expectations are rising for improved earnings power from higher interest rates, while efforts to reduce fixed costs and improve operational efficiency through DX continue steadily. Other operating companies are increasingly pursuing initiatives to improve productivity and added value through DX as they respond to higher costs resulting from rising personnel expenses and prices.」

「Initiatives from a medium- to long-term perspective are becoming more active, including strengthened sustainability-related efforts such as green transformation (GX) lending, investment in human capital, and efforts to improve productivity through the use of generative AI.」

「In the financial industry, where we provide consulting services, expectations for improved earnings have risen following changes in interest-rate policy. At the same time, initiatives from a medium- to long-term perspective are active, including expanding lending to decarbonization-related businesses, strengthening investment in human capital, and efforts to improve productivity using generative AI.」

「During the cumulative second-quarter period, the operating environment surrounding the company included rising expectations for improved earnings in the financial industry, where we provide consulting services, following changes in interest-rate policy. Initiatives from a medium- to long-term perspective are also active, including expanding lending to businesses centered on green transformation, strengthening investment in human capital, and efforts to improve productivity using generative AI.」

「In the financial industry, where we provide consulting services, higher interest rates overseas and sharp foreign-exchange movements are currently putting pressure on earnings. At the same time, initiatives from a medium- to long-term perspective are active, including expanding lending to businesses centered on green transformation, strengthening investment in human capital, and efforts to improve productivity using generative AI.」

「The government and the Bank of Japan have also indicated policies to support restructuring and investment in IT infrastructure as part of efforts to strengthen the competitiveness of regional banks, and system investment is expected to expand further going forward.」

「In the financial industry, where we provide consulting and solution services, banks are supporting companies affected by the COVID-19 pandemic with their funding needs under active government support measures. At the same time, in response to the challenging earnings environment caused by low interest rates, they are working to strengthen earnings power by reducing operating costs and expanding businesses outside finance, while moves toward consolidation and alliances among financial institutions are becoming increasingly active behind the scenes.」

「In the financial industry, where we provide consulting and solution services, banks are supporting companies affected by the COVID-19 pandemic with their funding needs under active government support measures. At the same time, amid the low-interest-rate environment, they are working to strengthen earnings power by reducing operating costs and expanding businesses outside finance. In addition, a series of system problems at major banks has drawn attention to IT governance for banking systems.」

「The government and the Bank of Japan have also indicated policies to support restructuring and investment in IT infrastructure as part of efforts to strengthen the competitiveness of regional banks, and system investment is expected to expand further going forward.」

「In the financial industry, as the prolonged ultra-low-interest-rate environment puts downward pressure on lending income, regional financial institutions are working to reduce costs through branch consolidation and closures and the use of IT in operations, while strengthening their earnings base by enhancing services that support regional economies and forming alliances across business categories.」

「In the financial industry, as the prolonged low-interest-rate environment puts downward pressure on lending income, regional financial institutions are working to reduce costs through branch consolidation and closures, as well as IT investment and operational efficiency measures using groups and alliances.」

「In the financial industry, as the prolonged low-interest-rate environment puts downward pressure on lending income, regional financial institutions are working to reduce costs through branch consolidation and closures, as well as IT investment and operational efficiency measures using groups and alliances.」

「Investment is expected to continue expanding in core system renewals and integration, as well as in the use of FinTech by Japanese financial institutions.」

「In fiscal 2017, Japan's financial IT market was worth ¥2.0517 trillion (according to IDC Japan Co., Ltd.), up 1.1% year on year. IT investment in information systems at financial institutions, which serve as social infrastructure, is expected to continue expanding, including investment in core system renewals and in the use of FinTech by Japanese financial institutions.」

「The financial IT market is attracting attention as a market expected to continue growing, with financial institutions pursuing initiatives such as the use of blockchain technology and other forms of Fintech and AI (artificial intelligence), while IT investment in areas such as the use of customer data is also increasing.」