Japanese securities brokerage firms explore how to use block chains to streamline business processes


nnAccording to the Nikkei Asia Review, Japan’s well-known securities brokerage firm SBI and Daiwa Securities will use the chain chain to carry out experiments, hoping to simplify the account opening and transaction settlement process through this new technology, so as to further attract customers, while Reduce costs, so that both sides can benefit from it. The two companies have been supported by a number of companies in the industry, if they can successfully achieve the goal, it will benefit the entire industry.n
nTranslated by: Inan
Japan’s securities industry is carefully exploring the use of block chain in a variety of ways to improve operational efficiency, such as simplifying the account opening and trading digital settlement process.n
Financial Services Group SBI will join the technology giant NEC to enable financial institutions to share customer certification information through the block chain and enable customers to skip the complex authentication process when opening an account with the new company. At the same time, Daiwa Securities Group will use the distributed book technology to experiment to verify the issuance name, the amount of shares and prices and other transaction settlement information.n
If these initiatives can reduce costs for securities companies, then retail investors and other customers will also benefit, such as lower fees.n
The two securities brokers will use a block-chain test environment that has been provided free of charge to domestic financial institutions by the exchange operator Japan Exchange Group since April last year. The experiment will mark the first time that the system has been used for specific projects.n
About 14 companies, including large brokers and banks, will participate in the SBI pilot. The complex process of opening an account makes it more difficult to attract customers, thus simplifying the process has become a problem for the industry as a whole. According to the Fintech Association of Japan, only online banking and securities companies will suffer 1.7 million people cancel their accounts every year. Since last year, the establishment of securities accounts also require customers to use the tax number and social security ID to register, increasing people’s psychological barriers.n
Daiwa Securities’s stock experiment will include 17 financial institutions, mostly large brokerage firms.n
At present, institutional investors have their own transaction verification system, which also makes the securities companies need to spend time and effort to adapt to them. It is reported that turning it into a unified block chain system can cut the associated costs by half.n

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