The Japan Banking Innovation Conference 2025, held at The Westin Tokyo, convened over a hundred senior banking executives, fintech leaders, policymakers and technology pioneers to discuss the fundamental shifts redefining financial services. Under the theme “The Beginning of Agentic AI,” the conference explored the impact of artificial intelligence (AI), blockchain, quantum computing, embedded finance and sustainability on the banking industry. The event underscored how banks must adapt to remain relevant, not just by leveraging technology but by fully integrating it into their core operational strategies. The rise of agentic AI and the future of banking The conference commenced with a keynote address by Emmanuel Daniel, Founder of TAB Global, who introduced the concept of agentic AI as a paradigm shift from traditional automation to self-adaptive intelligence that dynamically learns, interacts and makes autonomous decisions in real time. He illustrated that AI is rapidly redefining banking, from hyper-personalisation and fraud detection to credit underwriting and transaction processing. In his address, Daniel warned that financial institutions that continue to view AI merely as an efficiency tool rather than as a core transformation driver risk obsolescence. Philippe Paillart, chairman of the advisory council for the TAB Global Excellence in Retail Finance Programme, echoed these sentiments, urging banks to rethink their digital transformation roadmaps. AI, he asserted, is no longer a supplement but a revolutionary force that will redefine the industry’s operational models and revenue structures. The AI Leadership Roundtable allowed industry leaders to assess AI’s transformative potential while also acknowledging its challenges. Participants agreed that AI-driven hyper-personalisation is advancing beyond demographic-based targeting into real-time adaptive financial services. Banks are now integrating AI into e-commerce and healthcare ecosystems, delivering financial products at the precise moment consumers need them. The discussion also highlighted how AI is transforming risk management, particularly in fraud detection and regulatory compliance, with deep-learning models capable of detecting threats before they escalate. While AI’s capabilities were widely recognised, participants also acknowledged its regulatory and ethical challenges. Concerns over data privacy, algorithmic biases and governance frameworks remain key hurdles that must be addressed for AI-driven banking to maintain trust and compliance. High-frequency banking and the acceleration of financial transactions The concept of high-frequency banking was explored in a fireside chat between Steve Monaghan, executive chairman of Human AI and former chief innovation officer at DBS Bank, and Matthew Dooley of TAB Global. Monaghan argued that traditional banking remains constrained by outdated 30-day credit cycles and settlement delays. AI and quantum computing, he suggested, can compress these financial cycles, enabling real-time liquidity management, instantaneous credit underwriting and predictive analytics to enhance capital allocation. One of the most compelling points in his discussion was how AI-driven financial models could dramatically lower borrowing costs for underserved populations, thereby addressing financial inclusion at scale. Monaghan emphasised that banks need to transition towards continuous, real-time banking operations, where capital moves as efficiently as information in the digital economy. Open banking and embedded finance break down barriers John Owens, founder of Digital Finance Advisory Services, examined how open banking and embedded finance are reshaping financial services. In the session moderated by Urs Bolt, chairman of TAB Global’s The Banking Academy, panellists explored how fintech partnerships and API-driven ecosystems are dismantling traditional banking silos. Kaido Chiwata, CEO of BillPay, highlighted how embedded lending, insurance and payment solutions are seamlessly integrated into digital platforms, enabling instant financial access within retail, healthcare and transportation sectors. The discussion also covered regulatory challenges, with Takafumi Ochiai of Atsumi & Sakai, Smart Governance Inc., providing insights into Japan’s evolving open banking framework. Ochiai underscored the importance of strengthening data governance and consumer protection regulations to ensure financial services remain secure and compliant in an increasingly decentralised environment. Tokenisation, blockchain and the digital asset revolution The evolution of digital assets was another focal point, with a session dedicated to tokenisation, blockchain integration and the future of digital finance. Tsuyoshi Oyama of RAF Laboratory, Majid Lotfi Ghahroud of GPUF, and Manal Rifki of Rakuten Mobile, who is also a VC investor and researcher, discussed how tokenised securities and stablecoins are transforming asset management. Moderated by TAB Global’s Foo Boon Ping, the panel examined how blockchain technology is being leveraged to enhance cross-border payments, lower transaction costs and enable real-time settlements. Regulatory concerns were a key topic, particularly around the adoption of tokenised deposits, stablecoins and security token offerings. Speakers noted that while blockchain has the potential to increase financial transparency and efficiency, clear regulatory guidelines must be established to mitigate risks. Sustainable finance and ESG strategies in banking A panel led by David Gyori of TAB Global, featuring Masanori Fujima of SMBC Group and Yasunori Takeuchi of Corporate Action Japan, examined how banks can integrate sustainability into their core strategies. Fujima outlined SMBC’s three-phase ESG approach, which includes helping corporations visualise and track carbon footprints, connecting sustainability-focused businesses with investors, and implementing financing solutions that support the transition to net-zero emissions. Takeuchi, a former CEO of Standard Chartered Japan, shared insights on how shareholder activism is pushing corporations to adopt more aggressive sustainability targets. The panel also discussed how AI is being applied to carbon risk assessments and green investment tracking, embedding sustainability into long-term banking strategies. SBI’s vision for the future of banking A key highlight of the conference was a presentation by Tomoyuki Nii from SBI Holdings, which provided an in-depth look at the company’s AI-powered banking strategy and investments in blockchain and decentralised finance (DeFi). Nii explained how SBI is leveraging AI to optimise customer engagement, enhance risk assessment, and automate credit decisioning in real time. The presentation also covered SBI’s role in digital assets, particularly its advancements in tokenisation and cross-border payments. SBI is developing a blockchain-powered financial infrastructure, enabling faster, cheaper and more secure transactions. Its collaboration with regulators and financial institutions was highlighted as a crucial step toward creating secure and compliant digital asset frameworks. Quantum computing and the future of financial security The conference’s closing session looked at how quantum computing will shape banking security, risk assessment and financial modelling. Jean-Charles Cabelguen of Deeptech and Nii of SBI Investment explored with Gyori how quantum algorithms will revolutionise financial computation, enabling banks to process vast datasets instantaneously. They warned that as quantum capabilities advance, traditional encryption methods will become obsolete, making quantum-resistant cryptographic solutions a priority. The rise of quantum-as-a-service (QaaS) was also discussed, with experts predicting that banks will leverage cloud-based quantum computing solutions for fraud detection, portfolio optimisation and credit risk modelling. The urgency of transformation As the conference concluded, the overarching message was clear: the banking industry is undergoing an irreversible transformation. AI is shifting banking from reactive decision-making to proactive, real-time intelligence, fundamentally altering customer engagement and risk management. Open banking and embedded finance are dismantling traditional financial silos, while blockchain and tokenisation are redefining how assets are traded, store and secured. Sustainability is no longer a secondary concern but a fundamental pillar of banking strategy. The Japan Banking Innovation Conference 2025 reaffirmed that the future of banking is one where finance is frictionless, hyper-personalised and seamlessly embedded into everyday life. Leaders left with a shared understanding that the industry’s survival will not be determined by those who merely adapt, but by those who dare to shape the future.
