Retail Brokerage in Japan: Fighting Stagnation with Innovation

December 6, 2001

Abstract

Boston, MA, USA December 6, 2001

Celent Communications presents an overview of strategies adopted by Japanese securities firms to drive greater retail participation in the wake of a ten-year bear market.

In a new report, , Celent Communications concludes that, despite introducing a slew of new products and services aimed at individual investors, Japanese brokerages will not be successful in luring substantial new retail participation without a sustained market recovery. One bright spot in this generally depressed sector, however, is online trading. Celent expects online trading will account for nearly eighty percent of all retail trading in Japan by 2005, driven by a small but active segment of self-directed investors.

The report outlines new investment products being introduced by full-service, online and foreign securities firms in Japan, including covered warrants, exchange-traded funds, Japanese real estate investment trusts, and the new "Japanese 401k"

"Domestic brokerages, faced with intense competition on the institutional side from foreign firms, are paying more attention to the retail sector, offering a diverse lineup of new products to attract individual investors," says Celent analyst Neil Katkov, author of the report. "However, uptake of these products will be slow and insufficient to reverse the decline in retail securities investment, which fell seven percent between 1995 and 2000. This harsh environment, however, has only intensified the competition to attract retail business and firms will continue to introduce new investment products and more sophisticated features and services, both online and off."

A Table of Contents is available online.

of Celent Communication's Retail Securities & Investments research service can download the report electronically by clicking on the icon to the left.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA  December 6, 2001

Return to report Abstract

EXECUTIVE SUMMARY 3
MARKET OVERVIEW 4
  Market Segmentation 7
  Savings and Assets 8
  Postal Savings-The Opportunity of the Decade? 10
  Foreign Competition at Home 10
ONLINE BROKERAGE 13
  A Growing Market 13
  Market Segmentation 16
  Mobile Trading 18
  Features and Services 19
  Consolidation Trends 20
  Competitive Strategies 21
NEW PRODUCTS 23
  Covered Warrants 23
  Exchange-Traded Funds 24
  Japanese Reits 25
  Japanese 401K 27
FUTURE TRENDS 30

 

        

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