• Japanese consumers looking for a bank have never had as much choice as they do today. Beyond traditional banks, financial services are now offered everywhere, from convenience stores to neobanks, and even supermarkets. So how can an online platform distinguish itself from the competition?

• In Japan, people typically have two or more bank accounts: in most cases, a primary account with a legacy bank for salary deposits, pensions, and daily expenses, and a secondary account for specific purposes such as savings or investments. Because this structure reinforces reliance on the primary account for core financial activities, online financial platforms are unlikely to become a customer’s main bank.

• However, the ongoing cost-of-living crisis in Japan weakens for a number of customers their loyalty to their primary bank, especially when fees are high and transactions are not rewarded. In particular younger demographics and urban dwellers are more willing to shift activity to platforms that minimize transaction costs or integrate with loyalty programs.

• With this as a backdrop, rather than replacing a primary bank, online platforms can position themselves as the default layer on top of it, where users manage spending, saving, and financial decisions in one place. In this model, the default layer adds value by making everyday financial activity more visible, more rewarding, and easier to optimize over time.
  

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