Future prospects for a cashless society utilizing advanced technology at UC Card Co., Ltd.

While the credit industry is required to create an environment that can be used safely and securely, cashless payment is expected as a more hygienic payment method against the backdrop of the spread of the new coronavirus infection. This time, we interviewed President Nakanishi of UC Card Co., Ltd., who is also the Vice Chairman of the Japan Credit Association, about the corporate image and new initiatives required in the new era.

Akihiro Nakanishi Born April 20, 1962 April 1985 Joined Dai-Ichi Kangyo Bank, Ltd. (currently Mizuho Bank, Ltd.) April 2012 Mizuho Corporate Bank, Ltd. Executive Officer, General Manager of Sales Department 8 July 2013 Mizuho Bank, Ltd. Executive Officer, General Manager of Sales Department 8 April 2014 Managing Executive Officer, Sales Officer April 2016 Managing Executive Officer, Mizuho Financial Group, Inc. Officer in charge of specific operations of retail / business corporation company Managing Executive Officer, Mizuho Bank, Ltd. Joint Manager of Retail / Business Corporation Division May 2017 President and CEO of Mizuho Business Service Co., Ltd. April 2020 President and CEO of UC Card Co., Ltd. (current position)June 2020 Vice Chairman of Japan Credit Association (current position)

Miho KawamuraBorn in Saitama prefecture. Graduated from Keisen University, Faculty of Humanities, Department of English and American Culture. Active as a TBS radio caster since April 2010. After that, he became free from the announcer of Ryukyu Asahi Broadcasting News Production Bureau. He is active in various media such as Ryukyu Asahi Broadcasting “Breaking News! Aiming Koshien!” Main MC, TV Asahi “Nanikore Chin Hyakkei” reporter, Nippon TV “Ariyoshi Hanseikai” appearance, “Osawa Yuri’s Yu Yu Wide” reporter.

About the environment surrounding the credit industry

Contributing to the realization of a safer and more secure cashless society by providing “finger vein authentication” payment services

Kawamura: As the impact of the new coronavirus has caused a decline in personal consumption not only in Japan but around the world, and the economy as a whole has been hit hard, cashless payments are attracting attention as a more hygienic means. Given this situation, what are your thoughts on the current state of the industry?

Nakanishi: The spread of the new coronavirus has a major impact on the economy and we need to practice a “new lifestyle”.

This “new lifestyle” has been a catalyst for accelerating the digitization of Japan. Recommendations for mail-order sales and electronic payments have increased the number of cashless payment users, and recently, medical and public services have been made online. Lifestyle changes and the evolution of digital technology will expand online transactions that transcend time and place, as well as cashless payments.

Credit cards have always been the center of cashless payments in Japan, favored by consumers for their ease of use and security. With the tailwind of the “cashless point return project” led by the Ministry of Economy, Trade and Industry, various cashless payments such as electronic money and code payments are becoming widespread. In comparison, Japan’s cashless payment ratio is 26.8%, of which credit cards account for about 90%, and it will continue to be the leading player in cashless payments.

We, the credit card industry, are expected to continue to provide safe and secure payment methods and improve consumer convenience to stimulate consumption and contribute to the recovery of the Japanese economy. .. As digitalization progresses and the demand for cashless payments increases, it is important for the credit card industry to play a role as an indispensable social infrastructure.

Kawamura: With the further spread of cashless payments, expectations for “biometric authentication” are increasing as a more convenient and secure authentication method. Among them, your company is making efforts for settlement of “finger vein authentication”. Please tell us about the background of the efforts and future prospects based on the demonstration experiment.

Nakanishi: As expectations for “biometric authentication” as a more convenient and secure authentication method are increasing, we are focusing on “finger vein authentication” as an authentication method more suitable for the payment field among multiple biometric authentication methods. , From December 2019, in collaboration with Hitachi, Ltd., a demonstration experiment of cashless payment by finger vein authentication utilizing the “public biometric authentication platform (PBI)” that encrypts and registers and collates biometric information. It was started.

Demonstration experiments were conducted until March 2020, and after receiving favorable reactions from users, improvements were made and commercialized, and in December 2020, it was introduced to the factory cafeteria (Cafe) of the manufacturing industry as the 1st user. I did. Currently, we are working on the introduction to the company, which is the second project.

At Corona, we feel that expectations and needs for “finger vein recognition” payments are steadily increasing as a contactless payment method that does not use wallets, cards, or smartphones, and we will continue to use “finger vein recognition” in various fields. We would like to provide payment services and contribute to the realization of a safer, more secure and convenient cashless society.

Kawamura: The revised installment sales law will come into effect in April, and it will be necessary to create an environment in which users can use various payment methods safely and securely. Please tell us about the issues that the industry should tackle in the future.

Nakanishi: Two years have passed since the last revised installment sales law, which required the proper management of credit card information and the implementation of measures against fraudulent use, and the security level in Japan is steadily improving. In face-to-face transactions, the use of ICs for shared terminals is progressing, and fraudulent use by counterfeit cards is decreasing. However, in non-face-to-face transactions, with the expansion of the EC market, new methods such as fraudulent card information by inducing fake payment screens are increasing, and fraudulent use by number theft is steadily increasing. The amount of damage caused by non-face-to-face transactions in 2019 was 22.3 billion yen, and although it was affected by the new coronavirus in 2020, it remains high at 22.3 billion yen as in 2019.In order to stop this increase, we, the credit card industry, are required to further improve our security measures in accordance with the “Credit Card Security Guidelines” compiled by the Credit Transaction Security Measures Council.

In the “Credit Card Security Guidelines”, four measures of personal authentication, face authentication, attribute / behavior analysis, and utilization of delivery address information are listed as measures against non-face-to-face fraudulent use, and the card companies and member stores are taking measures. However, the expected effects have not always been obtained, and the non-face-to-face fraud response WG under the Credit Transaction Security Measures Council is considering reviewing more effective countermeasures and standards.

In the current situation where technology is evolving day by day and methods of unauthorized use are changing day by day, it is important to consider measures to control damage at the moment, but it is also important to consider measures that look one step ahead in parallel. I think it is necessary to consider damage control measures from a medium- to long-term perspective.

Initiatives as a UC Card

Celebrating the 50th anniversary of our founding, becoming a company required in a new era as a “new UC”

Kawamura: Please tell us about your company’s history.

Nakanishi: Since our establishment in 1969, we have been striving to develop the UC brand and Brothers Company, which is a member, member store and UC brand card issuing card company.

We celebrated the 50th anniversary of our founding on June 23, 2019, and for the next 50 years, we will provide various payment services to meet our customers’ needs more than ever before. We will endeavor to improve gender and promote safe and secure cashless society in Japanese society.

Kawamura: I was appointed president in April 2020. Please tell us about your future outlook.

Nakanishi: In October 2019, we will in-house the processing business that we have collaborated with partner companies, and in March 2020, we will become a wholly owned subsidiary of Mizuho Bank, providing a full-line cashless service “ New UC” It restarted as.

For the past year since taking office as president in April 2020, we have been working on internal structural reforms such as reorganization / new establishment in line with the new era, rationalization / digitization of operations, strengthening of sales departments and product development capabilities, and the business foundation. I’ve been solidifying my feet.

Currently, we are particularly focusing on the BtoB field. Every company has a high need for rationalization of expense settlement and settlement of commercial transactions, and by using a credit card, it is possible to simplify internal expense processing, transparency of expenses, and in the case of utilization in commercial transactions, it is appropriate to settle. This period has led to an improvement in cash flow, and our customers are very pleased with it. Recently, the number of companies wishing to introduce the system in conjunction with the in-house system is increasing, and we are promoting it in cooperation with Mizuho Bank, which is strong in corporate transactions.

When using credit card payment in business transactions between companies, only the card number is issued without issuing the actual card. Although it has already made considerable progress overseas, the target of use in Japan is limited to digital advertising, communication costs, etc., and I am wondering if there is room for expansion in the future. The Ministry of Economy, Trade and Industry has proposed to abolish typical bill transactions for business-to-business settlement by 2026, and we expect that it will be effective as an alternative method along with the use of Densai Net. ..

We are also focusing on the processing business. We are entrusted with the system and office work related to the member business and member store business developed by other companies. We have a state-of-the-art core system jointly developed with our business partners. We have human resources with know-how and knowledge about credit cards. Over the past year, we have significantly reviewed the operations of the processing department, promoted rationalization and digitalization, and made it possible to outsource operations with high price competitiveness. I am convinced that we were able to provide a business foundation that firmly supports the ever-developing cashless society, even as a child actor.

Kawamura: Please tell us about your efforts to improve the work environment.

Nakanishi: With the theme of “speed & communication”, we thoroughly value communication with superiors, colleagues, and subordinates. The worse the information, the faster it is reported and dealt with, and we are working hard to create a fulfilling and rewarding work environment every day. As part of organizational revitalization, in May last year, we implemented a “special proposal system” for all employees. There are many new business proposals that have nothing to do with my work, and I have adopted some projects, and asked the proposers to work on their own by allowing them to work side-by-side, and some of them have actually been put into practical use. I have.

In addition, in December of last year, a roundtable was held by management and managers, and there was a sense of unity through repeated communication with employees, such as repeated hot discussions on the future payment business and our growth strategy. We are also working to foster an organization.

Kawamura: Has there been any change in the way you work in the company as a result of the Corona disaster?

Nakanishi: Telework and liberalization of clothing have been introduced for several years, and the sales / planning department has established a teleworking system from the perspective of work style reform even before the spread of the new coronavirus infection. On the other hand, in the operations department, most of the employees had to come to the office when the state of emergency was declared in April due to the handling of actual products and system restrictions.

After that, with the aim of rationalizing the work, we reviewed and maintained the work flow, digitized it, and promoted versatility in terms of human resources, enabling each person to play two or three roles. Complementation has become possible, and now it is possible for about 20% of staff in the operations department to wait at home. Employees on standby are asked to carry out self-development for further versatility.

Staggered commuting is set every 15 minutes from 7:30 to 10:00, incorporating the voices of employees, in an effort to improve work-life balance.

We are also focusing on sustainability initiatives, such as promoting the use of online card usage details and automating various office processes (one-stop) in the member store business.

The role played by the Japan Credit Association

Supporting further security enhancement and contributing to the development of the Japanese economy

Kawamura: Finally, Mr. Nakanishi is the representative director of UC Card Co., Ltd. and also the vice chairman of the Japan Credit Association. Please tell us your thoughts.

Nakanishi: The credit card industry is at a major turning point. The appearance of the industry is changing day by day, such as the enforcement of the revised installment sales law based on the entry of FinTech businesses into the credit card industry and changes in the business environment due to the expansion of the new coronavirus.

As the credit card industry grows and develops further, it is necessary to provide convenience to consumers through payment methods, and as a premise, it is essential to create a safer and more secure environment than ever before.

For that purpose, it is necessary for many businesses to respond to the security standards and measures shown in the “credit card security guidelines” and self-regulatory rules mentioned earlier.

As the secretariat of the Credit Transaction Security Measures Council and the Certified Installment Sales Association, the Japan Credit Association is required to accurately inform people in each industry and promote their understanding and practice. increase.

The credit card industry is required to contribute to the development of the Japanese economy by providing convenience to consumers in a safe and secure usage environment created through these activities. We believe that the Japan Credit Association is expected to help with this.

[PR]Provided by: Japan Credit Association