Asset management â Both Japanese individual savers and institutional investors are interested in investment products which give a respectable level of return against a moderate risk profile
Financial Services Sector in Japan
Japan is one of the largest financial services markets in the world. Japan Post Bank is the world?s
largest bank in deposit terms and the country is home to three of the world?s top 20 banks.
? A large market with vast accumulation of personal financial assets estimated at
approximately ¥1400 trillion (USD17 trillion @ $1= ¥83.15).
? The top 50 institutional investors have over USD12 trillion worth of assets
? Japan is home to many large pension funds, e.g. Government Pension Investment Fund
with USD1400 billion which is the world?s largest public pension fund.
? The deposit taking and lending market is still largely occupied by the large Japanese
financial institutions. Japan Post Bank is the world?s largest deposit taking institution with
a total asset of ¥226 trillion (£1.5 trillion) and Japan is home to three of the world?s top 20
banks. Most international banks have a presence in Japan, e.g. Citibank, HSBC, Barclays
and UBS but their activities tend to be more corporate customer focused. Citibank and
HSBC are the only foreign banks with high-street retail banking businesses.
? Japanese non-life insurance market is about USD100 billion of which more than 80% is
occupied by domestic players, e.g. Tokio Marine.
Asset management ? Both Japanese individual savers and institutional investors are interested in
investment products which give a respectable level of return against a moderate risk profile.
Japanese financial institutions have been entering into alliances with several well-known UK
asset management companies to enhance their offering to their clients. Japanese corporate
pension funds have been pioneering investment in alternative investments including hedge funds
and there are several funds with over 10% of their assets allocated to alternative investment.
Crossborder M&A activities ? With the saturation of the domestic market and the strength of the
yen, Japanese companies are looking for growth prospects overseas and have been very active in
making acquisitions. The total value of outbound M&A transactions by Japan reached ¥3 trillion
between April and September 2011 alone. This trend is expected to continue and even expand
CFD Trading ? This has been a growing area in response to some of the more finance-savvy risk
taking individuals, dubbed as ?Mrs Watanabe?. It is expected to reach ¥800 billion (£6.6 billion)
Latest export opportunities ? Financial & Professional Services
Latest export opportunities - Japan
Getting into the market
The Financial Services Agency (FSA) is Japan?s supervisory body for the industry and there are
regulations governing each strand of financial services activity. Generally speaking, it is a
requirement to have a Japanese incorporation and an FSA license for the specific line of business
that the company wishes to engage with. However, there are ways for working in partnership
arrangement with Japanese companies with legitimate licenses if you are not providing your
product/service directly to the end Japanese investor.
UKTI in Japan is well placed in facilitating connections with such potential Japanese partner
More about doing business in Japan
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
? Naomi Takegoshi, British Embassy Tokyo.
Tel: +81 (0)3 5211 1156 or email: Naomi.Takegoshi@fco.gov.uk.
Contact your local international trade team
Asset Management Seminar, British Embassy, Tokyo,
Date: November, 2012 (TBC)
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events ? Financial & Professional Services
Latest events ? Japan
More about OMIS and other UKTI services for exporters