As one of the most innovative countries in the world, Japan brings its innovation to the global scale. Jakarta is one amongst many capitals that has become their latest hub. What kind of inventions from the Japanese fintech innovation hub Jakarta are in store for this banking industry?
With how financial technologies evolve rapidly, people begin to expect any sort of growing digital ecosystem anywhere, including the heart of Indonesia. Digital banking, for example, has adopted many new technologies that improve the overall experience.
Since innovation hubs like this support collaboration and networking, it is expected for many fintech companies and startups to visit Jakarta as well. As such, this article will explain the digital banking ecosystem of Jakarta and its tech infrastructure.
Japanese Digital Banks in Jakarta and Their Programs
The ever-growing Japanese fintech innovation hub Jakarta has made it this far thanks to the contribution of these Japanese digital banks. Let’s learn about what kind of innovation programs they have made before:
MUFG’s Digital Initiatives
As one of the biggest Japanese banks in Jakarta, MUFG (Mitsubishi UFJ Financial Group) has made a lot of contributions to the country. One of them includes digital initiatives to promote financial technologies.
This year, MUFG Indonesia joined a collaboration with Bank Danamon to inaugurate MUFG Net Zero School. This event was held in Jakarta and brought over 100 corporate clients from both banks to promote sustainable financial practices.
The initiative program was hoped to provide inspiring insights for their customers to look forward to Indonesia’s journey towards net zero emissions. It also reflected MUFG as a strategic financial partner that supports an eco-friendly environment.
SMBC’s Fintech Partnership
Sumitomo Mitsui Banking Corporation (SMBC) also takes its part in Jakarta’s growing digital banking ecosystem. Their latest endeavor can be seen with their fintech partnership with Jenius, a well-known digital banking application.
Formerly created by Bank BTPN with a “philosophy of fintech startup,” Jenius aimed to be a part of the future financial ecosystem with SMBC Indonesia. Their goal includes:
- Focusing on product innovation. For example, Jenius has all-in-one investment options, auto-saving systems with competitive interest, and stronger security standards adopted from SMBC Indonesia.
- Empowering communities through insightful programs. With SMBC Indonesia, they have reached millions of people who received financial literacy and community enterprise training.
- Opening a bridge for citizens to access SMBC Indonesia’s financial services. One of them includes a program that helps MSMEs (micro, small, and medium enterprises).
Mizuho’s Innovation Programs
Mizuho Financial Group, or simply Mizuho, aims to lead as a fintech innovation center as well. While they had yet to establish any programs in Jakarta, Mizuho had established fintech laboratory facilities in Japan, particularly located in FINOLAB.
They had also previously joined a collaboration with Softbank to set up a fintech joint company, J.Score, in 2016. This company has since raised its score-based financial services that can be accessed by using smartphones.
Flow and AYANA: The Premium Fintech-Supported Workspaces
As many Japanese tech startups Jakarta have begun operating, they need innovative-supported workspaces that have access to banking networks and infrastructure. Flow and AYANA are perfect solutions for this because:
Flow’s Tech Infrastructure for Fintechs
Fintech is an abbreviation from “financial technology” because of the fact that tech infrastructure plays a huge factor in them. Fortunately, Flow is ready to back fintech startups up with its modern tech infrastructure:
- Premium workspaces with advanced technology integration. From soundproof remote collaboration-supported meeting rooms to event spaces with state-of-the-art technology.
- Information and communication network powered by Biznet. Located in the same building as Flow, Biznet owns and operates the most advanced fiber-optic network as well as the largest data center facility in Indonesia.
AYANA’s Business Support
Flow is not the only one in the Japanese fintech Jakarta innovation hub that supports business, as AYANA also helps fintech companies and startups with these great features:
- Human-centric facilities supported by AYANA’s hospitality services. From wellness areas, premium nursing rooms, and designated quiet zones to promote a friendly environment for companies and startups.
- Japanese-centric hospitality for Japanese fintech companies. Japanese business community partnership across Flow and AYANA allows easy networking. Meanwhile, Japanese fintech companies and startups can enjoy the hospitality that is aligned with Japanese business.
- AYANA Digital Hub. AYANA has a strategic location in the Midplaza tech district, allowing for easy networking between fintech companies and startups.
Prime Location near Japanese Banks
Located in the center of SCBD, both Flow and AYANA (Midplaza Jakarta) are easily accessible from nearby Japanese banks. MUFG (Trinity Tower), the SMBC Tower, and Mizuho (Astra Tower) are in close proximity to them.
Infrastructure and Tech Support for Digital Banking
Japanese fintech innovation hub Jakarta must uphold a robust infrastructure and tech support for fintech companies and startups. Here are some important infrastructures:
High-speed Internet and Cloud-based Data Center
To support a digital banking workspace, the ecosystem must have a strong internet network and data center with a cloud-based system. The reason is simply to have a real-time transaction system and secure payment methods.
This is why having Biznet in Flow’s workspaces matters. Fintech companies and startups will be able to provide financial services that are secure and fast, increasing the efficiency in operational activities.
Meeting and Testing Facilities
Fintech innovation centers exist for a reason: to nurture the development of new financial technologies. As stated above, Mizuho has built a fintech laboratory in Japan as a way for fintech companies to meet and test new features for digital banking.
Strong Data Security and Regulatory Compliance
The increasing risk from cybersecurity has pushed the fintech industry to follow regulations and implement strong data security. A built-in security and compliance mechanism can help fintech companies to adhere to PCI DSS 2.0 standards.
For example, almost all private banks in Japan use the Zengin system to protect their services and ensure transparent records of bank transfers, helping them to follow regulations.
The Advantages for Japanese Fintech Companies
Why can collaborating with Japanese fintech companies be advantageous? Here are a few of the reasons behind networking with Japanese fintech companies Jakarta:
- Opportunities for networking and collaboration for co-creating new fintech innovation. This can give birth to new startup ideas that can be adopted by other fintechs, as long as they are supported by major companies and banks.
- Access to knowledge and financial support from Japanese fintech companies and investors. Some of them may seek a strategic partnership that can benefit both countries.
To summarize, the Japanese fintech innovation hub Jakarta may provide valuable resources about the rapidly innovative fintech developments. As such, for those who seek an innovation-focused workspace with the digital banking ecosystem, Flow is ready to support your business today!