The internet has become an established part of the social infrastructure due to advancements in IT technology, and the society and economy are rapidly becoming digitized as can be seen in examples such as e-commerce becoming commonplace thanks to the rapid penetrations of smartphones into the market. Amidst these trends, there recently is a strong spotlight on FinTech, or new services that have emerged through the converge of finance and technology, even in Japan; the financial services that banks provide are being required to digitize quickly in order to enhance the convenience of our services.
Additionally, the market dynamics for financial institutions continue to be challenging, making it difficult to maintain or increase the top line, as new entrants from other industries intensify competition, and government policies have led to negative interest rates. In this environment, each financial institution is expected to digitize not only their services but also their own operations (development of AI, implementation of RPA, realization paperless operations, elimination of back office tasks) to improve their profitability and bring about Operational Excellence*1.
We share a common view on the business environment, and have been considering initiatives to efficiently realize the digitization of each bank, but given that a collaborative research and development effort by multiple banks can be expected to generate the effects listed below, they have agreed to enter into this partnership, and to establish Fincross DIGITAL Co., Ltd. in order to support these efforts and to materialize the results of the research and development efforts.

1. Resources necessary for the digitization of banks can be jointly contributed by multiple banks, reducing the costs and burdens incurred by each bank.
2. New financial services can be provided and new technologies can be implemented free from the constraints of existing systems, as multiple banks with different system infrastructures jointly conduct research and development.
3. Data from multiple banks can be aggregated, enabling data analyses and usages that are more complex than those that can be conducted by each individual bank (with the premise that individual data is made anonymous)

The partnership will initially conduct various initiatives that pertain to the promotion of digitization, but it will also make broad considerations as to which businesses are worthwhile for multiple banks to conduct in collaboration.

Additionally, the partnership proactively welcomes other financial institutions that would like to collaborate in digitization. We position this joint effort as a “truly open partnership”.

*1: The term Operational Excellence refers to the efforts of regional banks establishing and augmenting competitive advantages by improving the efficiencies and effects of their business operations that are conducted in order to create value.