Japan's effort to nudge its more than 100 struggling regional lenders into the digital age is floundering.
More than a year after rules to spur open banking were issued, small lenders are stuck in a back-and-forth with startups over fees for access to client account data, according to a Financial Services Agency official. Fintechs that must reach agreements with individual banks before a May deadline say they don't have the resources to pay hefty charges or crisscross the country convincing hold-outs.
The impasse risks embarrassing policymakers keen to lift Japan off the bottom of a ranking on fintech adoption. A successful move into open banking would put Japan in the company of the U.K. and Australia, which are freeing up data access to spur competition and create innovative financial solutions.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.