Japan has long been a global leader in technological innovation, and two of its most dynamic organisations, SoftBank and SBI, exemplify this ethos. SoftBank, best known for its Vision Funds and ambitious global investments, continues to drive change in telecommunications, artificial, or assisted, intelligence and biometrics. SBI, originally a financial arm of SoftBank, has evolved into a major player in venture capital, blockchain and digital banking.

Their approaches to innovation were examined in depth during the TAB Global Japan Banking Innovation Conference and the Japan Innovation Study Tour, where executives from both organisations outlined their strategies and their broader implications for the future of financial services and technology. While SoftBank has built its reputation on bold, high-risk investments, SBI has distinguished itself through a structured, ecosystem-driven approach to fintech and digital assets.

Their shared origins and later divergence provide a compelling case study of how companies can evolve from a common foundation into distinct entities with unique strategies. Both models offer valuable lessons in leadership, innovation and risk management, demonstrating the importance of adaptability and long-term vision in today’s rapidly changing financial and technological landscape.

From shared origins to distinct paths

While SoftBank and SBI operate independently today, their histories are deeply intertwined. SBI (originally known as SoftBank Investment) was founded in 1999 as the financial services arm of SoftBank, with the mission of bringing technology-driven disruption to banking and investment. It was launched under the leadership of Yoshitaka Kitao, who had been chief financial officer of SoftBank and played a key role in major early investments, including Alibaba and Yahoo Japan.

At its inception, SBI benefitted from SoftBank’s tech-first approach, applying internet-driven strategies to securities, banking and insurance. Early initiatives included Japan’s first online brokerage, SBI Securities, and SBI Sumishin Net Bank, both designed to digitise traditional financial services. SoftBank provided capital, strategic direction and technological expertise, helping SBI establish itself as a leader in digital finance.

However, as SoftBank expanded its global investment ambitions—particularly through its Vision Funds, which backed AI, robotics and fintech startups—SBI took a different approach. Under Kitao’s leadership, SBI became increasingly independent, focusing on financial ecosystem development rather than broad-spectrum venture capital investment. In 2006, the company officially separated from SoftBank and rebranded itself as SBI Holdings, marking the start of its autonomous trajectory.

Despite the split, the companies continued to share common philosophies of innovation, digital transformation and higher risk, higher-reward investment. Both organisations pursued aggressive expansion into emerging technologies, albeit in different directions—SoftBank with AI, connectivity and global tech startups, while SBI homed in on blockchain, digital assets and fintech infrastructure.

The two firms have also competed and collaborated in different areas. SBI’s crypto investments, such as SBI VC Trade and its stake in Ripple, positioned it as a leader in Japan’s digital asset market, while SoftBank’s focus on mobile payments and AI-driven finance, such as PayPay, reflected its push into embedded finance. While their strategies now diverge, their parallel ambitions to disrupt financial services remain aligned in spirit.

SoftBank’s bold vision and risk-taking mindset

SoftBank has built its reputation on its ability to spot emerging technological trends early and invest aggressively in companies poised for global expansion. Through its Vision Funds, the company has deployed billions into high-growth sectors such as AI, biometrics, fintech, robotics and connectivity, often taking outsized bets on companies that challenge traditional business models.

This higher risk, higher-reward approach has shaped the financial and technology industries over the past two decades, with SoftBank playing a critical role in scaling companies like Alibaba, Uber, WeWork and Paytm. Despite some high-profile investment failures, SoftBank has maintained a long-term strategy, banking on the idea that its portfolio of disruptive companies will eventually redefine industries and generate significant returns.

SoftBank’s philosophy is rooted in a deep conviction in technology’s transformative potential. Its investment model is unapologetically ambitious, funding businesses that seek to create entirely new market categories rather than simply competing within existing ones. This commitment to long-term disruption rather than short-term profitability has drawn both praise and scrutiny. While some investments have led to substantial losses, others have yielded massive gains, reinforcing SoftBank’s higher risk, higher-reward thesis.

ThinkAR and the future of biometric innovation

One of SoftBank’s latest innovations, ThinkAR, exemplifies its approach to future-ready solutions. Paul Jones, Managing Partner at SoftBank Investment Advisers, introduced ThinkAR during the Japan Innovation Study Tour, describing it as a biometrics-based wearable that represents the next stage of AI-driven security and connectivity.

“ThinkAR is beyond mobile,” Jones stated. “We are moving away from traditional devices and into immersive, AI-integrated solutions that enhance security, surveillance and real-time decision-making.”

SoftBank’s investment in biometric authentication and AI-driven security technologies reflects its broader strategy of backing deep tech that can be applied across multiple industries. ThinkAR integrates facial recognition, wearable AI and advanced computing to provide real-time, secure authentication in areas such as financial services, corporate security and border control.

The company has already tested and implemented ThinkAR within its own facilities, creating an internal proof-of-concept before scaling it globally. Jones highlighted SoftBank’s ability to develop, test and rapidly scale new technology, a critical advantage in an era where data security and AI-driven authentication are becoming increasingly important.

The challenge of balancing risk and return

SoftBank’s investment approach has not been without challenges. The Vision Funds have seen both major successes and costly missteps, illustrating the inherent volatility of venture-style investments at scale. Some of SoftBank’s most ambitious bets—such as its investment in WeWork, which led to significant losses—have drawn criticism regarding overvaluation and aggressive expansion strategies.

However, SoftBank’s ability to course-correct and adjust its investment strategy has allowed it to remain one of the most influential players in global technology finance. The company’s focus has gradually shifted toward AI, enterprise software and infrastructure technology, reflecting a more structured investment approach compared to its earlier years.

At the Japan Innovation Study Tour, Jones emphasised that the lessons learned from past investments have shaped a more disciplined and selective strategy for the future. Rather than chasing hypergrowth alone, SoftBank is now prioritising sustainable innovation, regulatory compliance and AI-driven enterprise solutions.

The contrasting approach to SBI

While SoftBank continues to operate at a global scale, backing high-stakes investments across various industries, SBI has taken a more measured approach, focusing on creating an integrated financial ecosystem within banking and fintech. Unlike SoftBank, which operates more like a venture capital powerhouse, SBI builds sustainable, scalable financial services within its own ecosystem, prioritising synergies between its investments rather than broad-market opportunities.

This contrast in strategy highlights two distinct yet effective models for financial and technological innovation. SoftBank thrives on market disruption, scale and global expansion, while SBI leverages its financial expertise to create a controlled, strategic innovation network.

SBI’s ecosystem-driven approach to financial innovation

While SoftBank has made its mark through higher risk, higher-reward global investments, SBI Holdings has taken a fundamentally different approach. Instead of deploying capital broadly across industries, SBI has built a tightly integrated financial ecosystem, strategically investing in fintech, digital banking and blockchain to support its core businesses.

At the Japan Innovation Study Tour, Tomoyuki Nii, Director of SBI Investment and SBI Holdings, outlined SBI’s three-pronged approach to innovation: fintech investment, digital banking and blockchain adoption. “We are not just investors; we create synergies between our companies,” Nii stated, highlighting how SBI strategically aligns its investments with its banking and securities operations.

This ecosystem-first strategy has positioned SBI as a pioneer in Japan’s digital financial sector, integrating technology, banking and capital markets in a way that few traditional financial institutions have managed.

From online brokerage to digital banking leadership

SBI was among the first financial institutions in Japan to embrace digital banking, launching SBI Securities as Japan’s first online brokerage and later expanding into SBI Sumishin Net Bank, one of the country’s largest online banks. Unlike traditional banks, which have adapted to digital services over time, SBI was built as a fintech-first institution.

Its online banking model leverages AI-driven credit scoring, blockchain-based payments and robo-advisory services, allowing SBI to scale efficiently without the need for physical branches. The integration of big data analytics and AI automation has enabled faster decision-making, lower operational costs and more personalised financial products for customers.

At the Japan Banking Innovation Conference, Nii explained how its fintech-focused banking model has allowed it to outpace legacy banks in digital transformation. “We take risks, but they are calculated risks. Every investment we make is designed to enhance the broader SBI ecosystem,” he said.

Unlike SoftBank, which funds higher-risk startups with global expansion ambitions, SBI prioritises investment in companies that can directly enhance its financial services operations. This has allowed SBI to build a seamless digital banking experience that integrates securities trading, wealth management and retail banking services under a unified platform.

Leading the way in blockchain and digital assets

One of SBI’s most ambitious and forward-looking bets has been its commitment to blockchain and digital asset infrastructure. SBI’s early investment in Ripple positioned it as a leader in blockchain-based financial transactions, and the company has actively worked to integrate distributed ledger technology into its banking and remittance services.

SBI’s crypto exchange, SBI VC Trade, was one of the first regulated platforms in Japan, providing a secure and compliant environment for digital asset trading. Nii explained that SBI sees blockchain not as a speculative asset class, but as a foundational technology for the future of finance.

“We see digital assets as a way to democratise investment opportunities, making previously illiquid assets accessible to a wider market,” Nii stated. SBI has also been a leader in security token offerings (STOs), exploring new ways to tokenise financial assets and enable fractional ownership of investments such as real estate and private equity.

SBI’s approach to blockchain contrasts sharply with SoftBank’s more diversified technology investments. While SoftBank’s AI-driven biometric solutions are focused on identity verification and security, SBI is redefining how assets are created, stored and traded within financial markets.

The future of Japan’s financial innovation

As Japan continues its digital transformation, both SoftBank and SBI will remain central players in shaping the future of finance, technology and investment. Their contrasting strategies offer valuable insights into how innovation can be approached from different angles—one through disruption, the other through integration.

SoftBank’s global, high-stakes investment model and SBI’s controlled, ecosystem-driven approach highlight two viable paths to innovation, each with its own risks and rewards. While SoftBank’s influence spans multiple industries, SBI’s commitment to fintech and blockchain ensures that it remains one of the most important financial innovators in Japan and beyond.

Two paths to innovation, one shared impact

SoftBank and SBI’s approaches to innovation reflect two contrasting but complementary philosophies. SoftBank thrives on disruptive, high-stakes investments, betting on AI, connectivity and emerging tech startups to shape the future. SBI, in contrast, focuses on long-term financial infrastructure, using blockchain, digital assets and fintech to modernise banking and investment.

Their shared history, from SBI’s origins within SoftBank to its rise as an independent fintech powerhouse, underscores the dynamic evolution of Japan’s technology and financial landscape. Whether through SoftBank’s moonshot investments or SBI’s ecosystem-driven strategy, both companies continue to drive innovation, providing valuable lessons in leadership, resilience and digital transformation for organisations worldwide.