TOKYO -- Mizuho Financial Group will launch a company dedicated to financial technology in June, with the aim of generating 100 billion yen ($894 million) in added value by 2020.
The Japanese megabank's recently installed chief digital innovation officer, Daisuke Yamada, will head the affiliate. Mizuho "is finished studying, and moving on to practical application" of fintech, President Yasuhiro Sato said.
The new entity, to be also funded by trading house Itochu and venture capital, will seek to create new fintech-related businesses. Mizuho will take less than a 15% stake to avoid making it an equity-method affiliate. Sales from new businesses and cost savings are expected to add up to 100 billion yen.
Yamada said he aims "to deepen cooperation not limited to finance to increase partners and to set the de facto standard for fintech services."
Mizuho will in June begin using blockchain, the technology underpinning bitcoin, to facilitate trade finance in a move that should speed up transactions and lower administrative costs. Yamada said the technology could also be used in manufacturing-sector supply chains and other applications, expressing an eagerness to try out new ideas.