January 31, 2025
With the rise of the digital era, online banking has become a mainstream financial service. But how do Japanese consumers view this emerging service? By examining the latest survey data, we have uncovered some intriguing trends and insights.
According to the latest survey conducted by Z.com Engagement Lab, about 41% of Japanese consumers believe that the online banking industry will move in the right direction in the next 12 months, reflecting a general optimism in the market. Interestingly, in contrast to this, only 35% of consumers are optimistic about the overall future direction of the country. This indicates that consumer expectations for online banking are higher than their confidence in the country's trajectory.
However, 10% of respondents hold a negative view of the future direction of online banking. This highlights the need for service providers to address potential risks despite the seemingly optimistic market.
The survey further explored consumer demand for changes in online banking. Results show that 47% of consumers believe significant improvements in services and features are necessary within the next 12 months. In contrast, 75% expressed a higher demand for changes at the national level, showing that while consumers have expectations for online banking, their demands for improvements in the fintech industry are relatively moderate compared to broader societal issues.
When it comes to government regulation, 34% of respondents support reducing oversight to foster innovation, while 19% advocate for stricter regulations to ensure service security. In contrast, 62% of consumers wish for less regulation on a national level. This highlights that in the field of financial technology, the desire for freedom of development appears to be more prominent.
Service providers must carefully balance this delicate equilibrium by finding effective solutions between safety and innovation to remain competitive in the market.
Despite the convenience of online banking, only 25% of respondents plan to increase usage frequency in the coming year, while 69% intend to maintain their current usage levels. This suggests that while online banking meets many needs, there is limited room for growth in usage.
In the Net Promoter Score (NPS) survey, Japan's online banking scored -54, which, while higher than the global average, remains relatively low. Only 12% of domestic consumers highly recommend local online banks, revealing a significant opportunity for improvement in the domestic market.
Overall, Japanese consumers have certain expectations for online banking, particularly in terms of service improvements and regulatory liberalization. However, challenges such as low usage frequency and recommendation rates highlight the industry's growth bottlenecks. Striking a balance between innovation and security will be crucial for future competitiveness.
Z.com Engagement Lab will continue to monitor the attitudes of Japanese consumers towards the Online Banking industry in Japan and update survey data, tracking market trends and changes in consumer demands.
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