Mizuho Financial Group, the second largest lender in Japan by assets, already has some 20 projects in the works for a new fintech venture it is planning to launch next month, according to a report by Reuters. Blockchain and artificial intelligence concepts are among the work that will be pursued within the new endeavor.
Daisuke Yamada, chief digital innovation officer of Mizuho, told Reuters that, while he will be president of the venture, the financial services company will be holding at most a 15% stake when it is launched. Mizuho will be committing some staff members to the project, however.
While the company won’t be the main controlling interest, Yamada says that establishing this outside venture will be helpful in promoting innovation while side-stepping the stodgy and risk-averse culture within the Tokyo-based bank.
By working on new areas through this method, Mizuho’s most forward-thinking personnel can work freely without having get clearance from compliance, legal, and risk management teams, said Yamada, according to Reuters.
“It’s not like building nuclear reactors or railway systems,” he told Reuters. “If projects flop, all the costs wasted will be labor costs, we can move on to the next ones.
Photo credit: Mizuho Trust & Banking Co., Ltd.