Mizuho Bank leads the way, launching Japan's first robo-advisory service
Last week Mizuho Bank launched a robo-advisory service setting a trend which is expected to be followed by other Japanese banks. According to Dr Neil Katkov, SVP of Celent's Asian Financial Services Practice, Japan's three megabanks have all reorganised their IT departments into "innovation groups" this year as they start to gear up in the digital space.

Automated services are shaking Japanese banks' foundations.

Mizuho Bank launched a new service that allows investors to have personalised investment advice via smartphones and PCs. Analysts expect other Japanese banks to follow suit, given the need to serve their digitally empowered customers.

Dr. Neil Katkov, Senior Vice President of Celent's Asian Financial Services Practice, comments: "Mizuho's robo advisory service marks the first foray by a major Japanese bank into digital financial services. Japan's other major banks are sure to follow with new fintech-flavored services of their own. Japan's three megabanks are getting serious about going digital. They have all reorganized their IT departments into 'innovation groups' this year."

Katkov adds that Japanese banks see fintech as a tool that helps them improve their business, rather than a threat.

Meanwhile, William Trout, Senior Analyst with Celent's Wealth Management Practice, says, "Mizuho Bank's decision to launch a digitized investments platform is another sign that the automated advice phenomenon that originated in Silicon Valley is finding traction in Asia, as well as in the US and Europe. Look for Mizuho's rivals to follow, and for consumers in Japan to benefit as automated advice shakes the foundations of what has been a closed and conservative Wealth Management market."