This is just the beginning of a battle for survival in the red ocean.
The intense competition is not the result of financial authorities' encouragement but rather grows out of the zero interest policy and resultant alteration in the operating environment.
Japan's banks have already been striving to raise efficiency by consolidating their core systems.
Now what they need to focus on is leading the digital initiative, which can be adaptable to diversifying needs, rather than focusing exclusively on gaining broader market to increase ROE.
New markets and customers should be calling for innovative financial services.
Setting and implementing a new strategic framework that has not existed up until now is key to success in this era.
S&P Global Market Intelligence: Japan's regional banks under pressure to seek scale for survival
English version will be forthcoming shortly!