Japan FTC Warns Banks Not to Reject Fintech Firms

Economy Politics

Tokyo, April 21 (Jiji Press)--Japan's Fair Trade Commission on Tuesday drew up a report making clear that practices by banks that cause undue disadvantages to fintech companies could amount to abuse of their dominant positions in violation of the antimonopoly law.

When fintech firms offer personal bookkeeping apps that enable customers to manage their purchase records with smartphones, they need to access the customers' bank account information by concluding contracts with the banks.

The report said that it will become difficult for fintech companies to continue operations if banks deny them customer information, adding that banks therefore tend to be in a position superior to that of fintech companies.

If banks launch similar bookkeeping services and restrict the supply of customer information with a view to eliminating competitors, such a practice "could be problematic under the antimonopoly law," the report said.

The FTC also called on banks to consider lowering fees for interbank remittances to promote cashless payment services.

[Copyright The Jiji Press, Ltd.]

Jiji Press