Financial sector has traditionally provided financial products and services to customers through direct channels such as branches, ATMs, and internet banking, with direct debit and card payments. 

However, with the dramatic improvements in digital devices and communication networks, telecommunications and retail businesses have begun to offer financial and payment functions as part of their core services. This approach provides a seamless customer experience, meeting various consumer's needs in their daily lives. Embedded Finance is a model that integrates financial services into an enterprise's offerings, enabling non-financial businesses to offer financial services to their users. 

Looking ahead, we believe that the traditional policy of " separation of banking and commerce" will evolve to better suit the digital age. We support businesses in leveraging Embedded Finance to expand their business portfolios. We foresee that essential financial functions for industries will be integrated into the layered functions of industries (front, middle, and back) and that industries will shift to business models that leverage these financial functions.

(1) Concretization of Financial Services and Market Opportunities (Utility and Business Viability):
a. Identify and catalog the distinctive strengths of the corporation or group, along with potential financial service offerings.
b. Analyze the value proposition of each service and the business environment (competition, user needs, etc.).
c. Determine the priority of services (short-term, mid-to-long-term, etc.).
d. Analyze which markets to target first, based on the market size and other relevant factors for each service.

(2) Realization Methods (Feasibility):
a. Select and evaluate partner banks.
b. Address issues related to banking agency operations and financial regulations.

(3) Execution Plan Formulation:
a. Develop methods for market entry utilizing industry standards (authentication through bank account connection, top-ups, fund transfers to financial services).
b. Establish concrete methods for market entry utilizing banking agency services (setting up deposit accounts, mortgages, foreign currency deposits, etc.).
c. Create a roadmap.

• Formulation of use cases based on distinctive differentiating elements of the corporation (group).
• Business design focusing on obtaining licenses for banking agency activities, and compliance with Payment Services Act, etc.
• Realization methods consider the adoption of 'industry standards', leveraging relationships and capabilities that NTT Data Group has with numerous financial institutions.

• Project Name: Ministry of Economy, Trade and Industry "Domestic and International Research Commission on Embedded Finance"