Every year, polls estimate 4% of Japanese citizens as entrepreneurs. However, 60-80% of entrepreneurs go bankrupt annually, as the holes are filled with new businesses. Due to this cycle, investment loans for new businesses are rarely provided, due to high percentage of resulting in losses.
In 1993, Citicorp (current Citigroup) developed a project known as the Financial Services Technology Consortium. This was the birth of fintech, the revolutionary merging of “Finance” with “Technology” which accumulated a total of 20+ billion in investments during 2013-2015.
Through integration of fintech, small businesses now trade commodities more affordably, and Wall Street have projected revenue through fintech at nearly 4.7 trillion. This article relates to larger banks such as Wells Fargo and JP Morgan as I learned through my Japanese business networks (my professional peers in Tokyo) that fintech is rapidly expanding in Asia as well.
While initial users of fintech are minor start-ups and engineers, JP Morgan have also compiled 15-18 team members comprised of arranged coders and developers to compete against these ventures in short-term projects. With 300+ emerging tech firms, 100+ pilots and around 50 new techs used, Matt Zames disclosed that the hit ratio of success has grown around 30%! Fintech can minimize investment losses on entrepreneurial business while advancing global market.
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