Tokyo positions fintech startups for global expansion

Japan’s advancing regulatory environment is creating major opportunities for global fintechs.

Japan is entering a new phase of fintech growth, with regulators, industry players, and the national government aligning to attract global fintech companies and accelerate digital innovation across financial services.

According to Tokio Morita, Executive Director of FinCity.Tokyo, Japan’s current moment is shaped by both longstanding strengths and renewed economic momentum.

Morita noted that the country adopted digital banking models decades ago, well before many global markets. “We had the financial crisis, and we have the online digital banks… for the past 20 years… banks have no physical presence,” he said, adding that Japan was also early in crypto regulation.

While Japan built early infrastructure, Morita said the country is now accelerating to match global fintech trends. “Japan is advanced, but we are also catching up with the global trend,” he said. He pointed to a resurgent economy and businesses ramping up digitalisation efforts as strong tailwinds for fintech expansion.

Investors are showing increased interest in specific types of fintech startups. “The first one is digitalisation, token tokenisation,” Morita said. “The second one is the payments and the embedded finance, and the third one is the sort of leg tech and subtech.” These segments align with emerging needs across Japan’s modernising financial sector.

Regulation is another critical advantage. “Japanese regulators are very supportive,” Morita said, citing efforts by the Financial Services Agency to guide fintech firms, promote AI adoption, and streamline compliance. The Tokyo Metropolitan Government also provides subsidies, office support, and relocation guidance. “That kind of ecosystem would be creating the sort of ecosystem for the new FinTech companies,” he added.

This interview was conducted at the sidelines of the Singapore FinTech Festival 2025.