To our shareholders and customers:
Last year’s stock market was marked by rough turmoil due to a succession of unexpected events; however, last year ended with the Nikkei Stock Average restoring the level from preceding year-end. This year, we will most likely experience unexpected events as well, and it is important to keep calm no matter what happens. For this, it is important to have certain perspectives regarding questions such as “What issues are human society confronting today?” and “How should we respond to such issues?” Essentially, having a ‘view of the markets’ means to have such perspectives.
Fintech (=Financial Technology) received a lot of attention in the financial industry last year. The on-line brokerage service developed by Matsui Securities is a classic example of the initial stage of Fintech, and we were able to present a firsthand example of how the technology of the internet could change an existing order with destructive power. The blockchain underpinned by such technology, combined with the advancement of AI (=Artificial Intelligence), will bring innovation to human society with much more speed and huge impact. The financial industry which is moved by information is highly compatible with this type of new system, and will most likely be the first to be influenced by it. The existing order will drastically change, and many financial institutions may no longer be needed. In other words, an era may arrive where neither Matsui Securities nor stock exchanges may be necessary. Of course, we believe we can survive if we can change ourselves by adapting to such changes of the times.
By the way, in the near future, it is estimated that more than half of human labor will be replaced by AI and robots. If this is true, the definition of labor will change. Tasks requiring time and strength will be taken over by AI and robots, and therefore, times will come where only tasks requiring the ability to think will be assumed by human labor. Labor will mean to produce results by using the brain.
If the definition of labor changes, the relationship between individuals and organizations will also change. The 20th century type business model where companies compete by employing a large work force will no longer be applicable. Workers will no longer be in a position of employment, but will be the source of creating added value for companies. This is the dawn of P2P (=Peer to Peer), in other words, individuals will be the main players engaging in economic activities by connecting to each other in network. Individuals will not belong to companies, but will participate in the activities of several companies. Companies will be no more than instruments for individuals.
Matsui Securities has started mutual fund business since last November, and at the same time we have commenced providing the asset allocation service based on robo-advisor. Just as we have seen that stock trading migrate over from trading through conventional securities brokers to on-line trading, we have introduced the mutual fund sales platform in anticipation of the drastic change to be seen in the mutual fund business through the dissemination of robo-advisor and utilization of AI in the future. We will aspire towards structural innovation of sales of mutual fund in Japan, capturing future changes in the business environment. Matsui Securities will celebrate its 100th anniversary next year, but the times are changing with speed and magnitude which goes well beyond our imagination. We would like to survive by continuing to change ourselves by keeping up with such changes of the times.
Your continued support is greatly appreciated.
President & CEO
Matsui Securities Co., Ltd.