Okay, so we begin with the last part of the of the day with our panel discussion and After the panel discussion or during the panel discussion you can also ask questions At all the time, so I will encourage you to do that and you can also ask questions with regard to the keynote speech we just heard from Ming Feng and So Ming Feng I have already introduced you so I will continue to my right with Henning Frank Henning Frank today jumped in and actually he's it's a it's a great pleasure that he actually made it and came from Hamburg to Bremen to Berlin on short notice and so Henning is the CEO of Zinsland and as we've recently been reading in the news you have merged with expo so obviously you will also get some questions on that and how that worked out and Just as a general note, so we will do it like that with the economics people the lingua franca's English and we will continue to speak in English and for the Legal language I think in Germany. It's It's English as well. Okay, perfect. So great and yes, so it's my great pleasure to introduce Udo Franke Who is from the Ministry of Finance German Minister of Finance and actually the head of the department? Which is in charge of all the regulation that crowdfunding platforms have to deal with and we have Conrad Rusch here who is partner at Linda Mann Schwenke law firm and Who advises I think both platforms and also investors and in in this field Okay, so I think we we should just jump right into this topic of real estate crowdfunding Which is becoming a really a big market in Germany and I think it is taken over most of the other types of equity crowdfunding in Germany And so my question would be to you Henning Why do you think we actually need real estate crowdfunding in in Germany? And I mean we have a lot of other forms of finding financing of real estate, right? I mean we could also invest in a reed or something like that And why do you think we actually need real estate crowdfunding? First of all, thanks for having me I think we need real estate crowdfunding to the point that so far if you want to invest in certain Properties your only way is buying like the asset itself being it an apartment a condominium or whatever And or you could actually go into a blind pool like a like a fund or something similar and What we want to do is give the opportunity to people who don't have the money investing in huge properties buying the whole place And and give them the opportunity to invest in certain properties Why so ever they believe in it certain cities certain as a type certain class certain Developer maybe because you know the developer or you know somebody on the team And and give those the opportunity to invest directly In addition It's it's a process that through digital platforms nowadays. It's super easy super quick You don't have to go to your to your bank consultant read about 60 papers of paper sign it sign it back It's a it's a process you can actually do in a couple minutes And I think that's something in terms of the user experience what people demand nowadays And yeah, I think I think these are some of the possibilities you do have with real estate crowdfunding Maybe just to follow quickly up on that. So I mean how you phrase it It's it's somehow sounds like that you can actually invest in your own property, but that's not the case, right? I mean you're investing in a different Property of someone else I think that was always my dream right that I could buy my real estate using a crowdfunding platform But it's not really my real estate. So the question would be I mean what would you? Outline I guess you could do this if you buy a fund with your retail broker as well, right? So so can you elaborate on that? Sure. So what we do As expuro which I represent now after the merger. I'm sure you have a question around that as well Is that we have two product lines one is we do finance Developers so somebody building a property who needs messing in capital for the next two years until the property is built And sold off and you can invest of this you into this you get a Fixed interest rate, which is will be paid out in the end when the money is paid back and it's not your property Obviously, but at the other time on the other side. We also have a product where You can invest into an existing an existing multi-family home for example with starting from a thousand euros And you also participate in the upside. So you participate in the Rental income But you also participate in the upside of this building will be sold for a higher price in a couple of years So is it your property? No, it's not but it's quite similar it's I think it's the most similar you can get through by by not buying yourself a piece of land and That's the idea. We're having moving more into that direction what you actually just described More being at your own and instead of financing somebody else So maybe I continue with the economic side and then we switch over to the let's let's just ask Henning Can you can you talk a little about the market size because we didn't choose this general topic for this discussion for no reason It's because real estate crowdfunding is by far the biggest market in the whole sort of realm of crowd investing This is something we this is the seventh crowd investing symposium We did the first in 2012 and I think nobody would have expected real estate crowdfunding to become that big So maybe could you tell us a little about about market size? And maybe you could also elaborate on the reasons why you think this was such a boom This one that's easier So in terms of the size we have a platform volume in 2018 which is roughly about 300 million euros in Germany In 2018 Growing it obviously started very small in 2012 13 the first first crowdfunding campaigns on real estate have been done Last year 300 million euros in Germany altogether. We will be That's the best guess about 500 million euros of capital In this year, and it's it's something that's definitely growing I think I think there are several reasons for for why it's it's picking up so quickly one of the reasons is that that Real estate is something people are obviously interested in and has been interested in a long time and as you all know the markets are quite empty if you want to buy right now and So I think that's one of the reasons you get an access to a market that's sometimes hard for you to get to especially if you are not like a like a high net worth individual or somebody with a high income But you have a couple couple thousand bucks. You have otherwise no chance participating in the market besides going into a fund or Read or something something similar I think I think that's one of the reasons why why people like to invest in in that case and Obviously, there's also a bit of a boom because real estate Markets have been going up the last couple years quite significantly and some people want to jump on the train and and you know They see other people making money They want to do the same and I think so it's also besides the fact that there's like an natural growth in it There's a bit of a boom growth in it as well. Why why things are picking up quickly Yeah, these these are my main reasons from from my understanding just to make point one thing out If we're talking about massing in capital In Germany, we're still there's not really secured numbers, but it should be a market Which is between 10 and 15 billion a year So what all together so what the platforms are doing like it's still a very small Percentage of what actually is happening in the market a lot of the massing capital still comes from Institutional investors or semi professional investors on an offline analog system Because they know somebody or they want to invest in a certain in a certain developer So we are still small and compared of the overall market size, but it's a market. That's as you said growing up quickly Okay, so my my question would be if Germany is doing so well apparently in real estate crowdfunding How is it working in the US currently? I mean thing. Do you know anything about that? I Don't know too much. I know there are some platforms working on that. I think I've showed some of their logos there I think many of them actually focusing on like accredited remasters like and people who have a lot of fixed a Lot of a lot of wealth already So I don't think there's I think there's a few but not many that has kind of been opening up to regularly masters Okay, so so do the Americans just differently invest in real estate in terms of do they have an alternative? So usually if I read the alternative finance report from Cambridge I see all those very multiple types of investments that are apparently Taking taking place in the UK. Do you know that the Americans are just doing it differently or they're just with banks or what are they doing? I think they are still catching up. So I think there's opportunity there for sure I think it's just sometimes it's the legal hurdle and sometimes people getting used to that It's just like any new product has a diffusion process. So you guys are obviously in the lead Okay, yeah, I think that it was also represented in the in the publications right because the jobs act was implemented So late we could in Germany always have this this data up front and then now the US I think it's also publishing a lot in an equity crowdfunding All right, so then let's turn to the regulatory point of view now and so let's ask mr. Franco What what is the we heard about the market size and the development the growth? What's the basic view of the Ministry of Finance on this market? When the special regulation on crowdfunding was introduced 2015 they are the basic reasoning behind it was to alleviate Startup financing financing of small small enterprises and that was the reason why This exemption from the prospectus requirements were introduced and when we did the first Evaluation of the effects of the of the crowdfunding Exemption we were quite surprised that a large part even at that time was going on to into real estate crowdfunding and In the last two three years this even Increased this this part. So now it's the majority of financing and We discussed and we did also this also in our in our two reports about whether this Would be appropriate to grant this kind of Elevation for this crowdfunding real estate sector Because we on the one hand thought that There might be in effect on on the pricing on on Contributing to a boom in in in real estate in real estate prices and at the same time There isn't really a leg on on on bank financing for real estate For real estate projects in addition In in general bank loans on real estate are quite sure they They are strict lending standards. They are strict Collateralization standards and at least some of these Crowdfunding a real estate finances seem to be Non-collateralized and From from the Investors perspective, they might be they might be to a certain extent risky if prices go down in the end we decided that We let the market decide on where investors want to Want to invest also into taking to conservation then comparison to the overall financing of real estate sector crowd investing is a quite Limited part, but we Increased the and strengthen the information requirements regarding collateralization of of crowdfunding Investments in In real estates so crowdfunding firms Must inform the investors whether the loans are collateralized so the investors have a better Better ability to assess the risks When they when they're doing this kind of investments We can ask a follow-up question on that because I would Like to ask Henning and like I mean how are the loans collateralized because I have been reading the far we be Letters of some of the issuers and I find it quite difficult to find out what the collateral actually is so in some case It is was the backyard of a real estate prop of a property and Can you say something about how the collateralization actually work? Sure, so first of all we we need to see that products have changed over the last couple of years So pretty much all the platforms started with subordinated loans with no security backup whatsoever And this is something that has changed We we also learned from from the market and from stuff that happened on a market And so we we a moved much more from crowdfunding into crowd lending so you have the possibility of putting security measures behind it and be Experial right now We're doing about seventy two to seventy five percent of all the projects are actually through bonds So it's not typical fraud funding anymore. It's not a subordinated loan anymore. It's a bond Which is moving from a gray market into more of a white market more of security to towards the the investors and That is something that that we see as well In the end there's always a risk associated to it. It's it's you don't get Interest rates of six seven percent With with no risk associated at all But we try to make it as secure as possible for the for the investors and the different possibilities sometimes we we we we we got Don't know the English word We're getting to the to the current book and and so we're trying to to secure the loan as well as possible But bank is first obviously We sometimes have projects which are not actually we're not no bank is involved then it's a bit different But then comes first, but that's also a different interest rate and but the you wouldn't Hardly ever find any subordinated loans on the platform or you don't find any subordinated loans with any risk As sorry with any security on the platform anymore Okay, so heading just talked about some trends in the market or at least how expo or since land Changed contracts or the trends you see. Let's ask Conrad who has an overview of the market Is that representative of all platforms of what what platforms are doing? Where do you see trends and what legal or what challenges for legal advisers are connected or associated with those changes? Yes, there is there is definitely a trend towards bond real estate crowdfunding and That is that is developing you I have several clients who are moving towards that direction and One of the reasons is exactly that reason what you've mentioned Due to our banking supervisory law in Germany We have to take the bond route in order to do certain things namely Create security if we if we do it with a normal loan then We need to do it with a qualified subordination loan with a with a with a very Significant qualification and subordination in in the in the loan document because otherwise the land the crowd would be doing Credit business and would actually need a banking license each individual would need a banking license and also the issue would need a banking license, so That is the driving factor why this real estate crowd a lending market started with this subordinated loan model, and I think that is it is the trend is moving away from that, but it is still there and I'm actually Very curious to see what what model will actually Make the race I'm not sure that the standard Qualified subordination model is is out of date. I don't really see that For the following reason which you also also already mentioned. There's always the bank. There's always the commercial bank On ahead, yeah, and they have to take the senior security for banking supervisory law reasons because very strict banking supervisory law standards, so they have to take the senior security and then If you take the second tranche land charge or whether you take no land charge Sometimes doesn't really make a difference and then You may find that it's actually much much more efficient to do a normal subordinate loan rather than a bond structure So that's how I see this thing about the bond trend and part of your question was sort of the Challenges Which I see in the market, I mean I always see it through the lens of through the eyes of our clients, you know, so Those are a number of crowd-lining platforms So I don't see it the whole of the market I have to make that qualification, but there's a number of crowd-lining platforms and we also do due diligence this For investors, so then we also see other platforms which are not really our clients But we can we can look at them because we're doing due diligence and so so what are the challenges? I think One main challenge is actually I would call it regulatory stress and I'm Because there is a lot of regulation regulatory waves coming over the platforms in rather short iterations reiterations and actually most Almost all of this regulation has a good reason But the way it is the way it is implemented and the and also the timing in which it happens Actually causes a lot of stress. So I see a lot of the in-house council dealing a lot with with regulation and actually watching the the legislation process and And now we have Frank seeing extra. So I Really have to say it's it's it's not really the Drafting of the of the study would you would you do in at the BMF, but it's also It's it's really that the timing and I'll give you and and it's the preparation of the of the supervisory authority Which is the buffing. Yeah, I'll just give two examples one example now we have early early November and on the 1st of January there is going to be An amendment to the German anti-money laundering law now we have a lot of international guests here You don't have to do so. What is that? No, well, it's it's an important law for for the crowd planning platforms it has to deal with know your customer and It is a potential conversion killer Put simply yeah, so if you if you have traffic on your website and you have to show them Oh, can you please go to the next post office and show your ID and then can you please come back? Then you will not going to see him again. So this AML thing is actually quite an important issue and I think it is To say that right in front right right right at the beginning I think it's absolutely correct that crowd landing platforms should be should be obliged entities under the AML laws I think that's right Because you can invest a lot of anonymous money over these platforms So I think it's actually quite right that that should be that they should be obliged entities But you know, it's now early November and there hasn't even there's there's been the first hearing of this statute last week and it's going to be enter into force on the 1st of January and There's actually no pressure for this because There is no EU directive telling us to make crowd-lining platforms AML obliged entities. That's a autonomous decision of the German legislator. It's a good it's it's it's a good decision I think but you know, I sometimes wonder why does it have to be now in such a rush and I can see them the the long-term Motivation because we'll talk about this. I think also in a minute because in the long term The crowd-lining platforms shall be Shall be supervised by BAFIN and no longer by local authorities as at the moment, which is also a good idea I think and so in order to prepare that they should also be under AML obligations anti-money laundering law obligations just like all the banks and all the brokers and and so on So I can see that point but really I Mean you get the point. I'm now pitching for a little extension to to to my left Because it would be actually in compliance with you law to do so So that's one one example where we I just find what is what is the challenge? It's it's really this the stress that is sometimes created the other other example is is is coming Is one which you already mentioned it's about also a very Sensible thing to do you've obliged so that the legislator Which is all of us, which is the democratic a lawmaker. Yes, so the lawmaker has obliged the Lawmaker has obliged the platforms to put into their information sheet also information about the security because we've just heard it's important and That that That entered into force in the middle of July I think and it was also just like six weeks Between the passing of the law and the entering into force and the officers of barfin They had no idea how to how to read it and they didn't know what to do with it and I had really strange discussions with barfin officers about what this means and Because the point is it should be The idea was actually quite simple. It should say in the in the information sheet. What is the security, but for us Quite quite difficult to explain because there isn't really security because it's subordinated security and it's a bit of a contradiction in itself To have subordinated security and so we have to explain that and all in in like five lines Big challenge and I think it would I think the law is perfectly fine You could do a workshop with the barfin officers. That's just a suggestion because I think they I mean They are perfectly educated to do that and qualify to do it But they just had didn't have the time to get prepared. So and then actually one or two crowd-lending Projects had to go on hold for a month or so until these things were and so, you know the real estate developers had to wait for their money for like a month because Nobody knew how to read the new law So well, we have a real panel discussion right now. So I would just ask would you like to respond Maybe two or three remarks regarding this a ML issue that's Luckily I must say not on my desk. It's a colleague that is responsible But as far as I understand The amended directive has to be put into As we're implemented into German law until the first of January. So we are in a rush to implement this This amended AML Requirements and and that's it's now a decision to go above that to make the German Market not only with regard to crowdfunding, but with regard to a lot of other issues more AML resistance or and And Therefore I can understand That this is is a challenge For for the market, but I must also say it's a challenge for for lawmakers. There was a public hearing on Wednesday next next Wednesday The final reading will be in the in the in the parliament or in the In the committee and then in the parliament, so it's a very even for the lawmakers a very short timed process and That's a general this decision on To enlarge the law and then I think it's also to a certain extent legitimate for this kind of a not to to foresee exemptions for certain for certain kinds of Financing tools Regarding the implementation Challenges, I must say I am I was not aware about that I can I can see Or I can understand that it's a it's a challenge, but the The goal was also to provide the market with elevations you also know that There were the The kinds of instruments that were allowed for crowdfunding Or that are a lot for crowdfunding were enlarged by by the law And I think this was very much welcomed by the by the market and the market would certainly Work a bit more to have this Six months earlier than six months later. So I think this every time you Regulations must be put into place. There are some Some frictions, but I hope that this can be solved and and I think the buffing in itself is good world so That's right. I know you can ask for some understanding of the challenges Understood I didn't mention that in the same law the the threshold for prospectus free crowdfunding was was increased from 2.5 million to 6 million. So that was in a significant Elevation for the market indeed and so that's just me the advocate only making the points that Left and so that that's actually correct That's all Thank you, this actually is quite a good point since we have many economists here in this in our group Just just maybe first We this this is what economists call an external shock, right? It's it's an external event and we can see what would be interesting to find whether it has any consequences So maybe let's just very quickly Henning Do you think that the the the the fact that it's that you can invest now or you can issue? Subordinated profit participating loans not only up to 2.5 million, but up to 6 million has any effect on on on your daily day-to-day business small one because something I'd like to mention to what you said a couple minutes before about Subordinated loans versus bonds in a general context and what which one will be the one coming in first You have to see that a issuing a bond is just much more expensive than a subordinated loan So if you have a project that needs to be financed. That's a 800k It's not worth it whatsoever to to issue a bond. Nobody will do this. It's way too expensive So that's one of the reasons why we have to go through we are going through more once now than we did one year ago because our projects in general are bigger now obviously for somebody who Who's not allowed to issue bonds? It's it's obviously a big help if you can finance now up to 6 million rather than 2.5 million on on the downside The limit of the subordinated loan is a jump from 10k per person to 25k per person But they're still a limit So you still need a lot of investors to really fill a 5 million Subordinated loan and there's not too many platforms who can do this who have that amount of investors So I think they're there in theory you will see be see more and more subordinated loans and bigger bigger sciences In the next couple of years, but in the first moment. I think there's not like such a big difference To to the market We already had the first question, but I would suggest we just continue for maybe 10 minutes and then open the floor Absolutely, yeah, so I would like to ask one more question to Ming Feng So the the legal scholars are apparently is more interested in in thresholds and certain amounts to protect investors and so so for me, this is all and I have to To apologize Mambo jumbo in a sense that you know, it doesn't matter whether you invest 10,000 euros or 9,000 euros If the money is gone, it's gone, right? So the question for me would be I mean can technology or the platforms itself Also protect investors and if they can how would that look like and I think you have investigated in your papers already different mechanism like auction mechanisms and post-a-price mechanisms and Would you say this that there is a way that technology can actually help? Thank you Lars. So I think Sorry the jelly I think that's a very important also difficult question.  So I think that's always a dilemma for technology So I think ultimately it can help but I think there's also going to be a lot of challenges in that process So for instance For platforms one, of course, we need to take it into account. They're incentive, right? So they they are profit profit maximizing organization. So we should respect that but on the other hand Sometimes they'll create a conflict for instance if you want to protect Small investors for instance, or if you want to predict the borrowers Make sure that they are not biased against on certain protective information basis such as race and gender One thing we need is to actually for instance if it involves any kind of algorithm we need to know what actually is in the algorithm, but that would mean may not be easy to do and By definition because some of the algorithms are proprietary. So they they are belong to I think as last probably No more about is they could probably belong to business secrets, right? Right. So they have a right to keep some of things private But so that I think it's always going to be an intricate balance between the two so it's all you want to put at the Investors and borrowers, but also you want to protect the interests of the platforms who develop these algorithms in the first place So, but I think ultimately Technology will help if you have the transparency and the large amount of data to train a lot of things and detect Not just biases in algorithms, but also in other places for instance I think if you want to protect small investors if borrowers for instance in B2B landing context It's not just the platforms we need to look at sometimes because the loans when they are originated It's not just a decision of the platform to list them on the platform on the website But it's also the individual investors decision whether to lend to that person or not So if you do see some biases at the end results who gets funding and who doesn't get funding It it could be yes could be platform, but it will also be the individual investors So it's very difficult for us to to disentangle who is actually accessing that bias and whether somebody should punish or not So I think technology data and then many other things are actually all I play here. So It should it should be able to help, but I think there's going to be a lot of challenges to deal with as well Okay, so so one of the platforms with which has used technology recently is I think Expo because they have implemented the blockchain technology and when extending loans So can you say anything about why you did this and why this would actually help investors and why that's a good thing Or maybe it's not and you don't believe in it because you you are still the CEO of since land at the time You think it was a terrible thing to do But now you're in it and can't do anything about it anymore or If so, I wouldn't admit it No, I think it's actually a great idea The the idea why we why we use blockchain technology to to for the bond is that it enables us to do any sort of Transfer much quicker. So otherwise you need the banks you need it Depots sorry a depot with a bank Takes couple of days till till actually the investors see that they that they have the bond in the depot It's always a hassle for the investors, you know, they paid the money and After five days, they still don't have it in the depot and another reason is that if we You talked about a secondary market as well and how it affects the primary market Secondary market is not that important if you're talking about a Financing of a developer for two years because most people don't need liquidity within these two years, but we're talking about Yield-based property with a bond for ten years. There might be some people who want to sell it before so Creating a secondary platform or a secondary market is obviously the the blockchain helps a lot It's it's much quicker. It's much more efficient And in terms of the cost structure just by seeing the cost that we need for clear stream And then the depot banks and so on we can save more than 90% of that cost by going through blockchain Which is obviously something we can pass on to to investors through higher yield and so it's it's a it's I think a better user experience and be it's its higher interest rates, which I think both investors really like But if I have anything learned from from the legal scholars It's that you actually want to have a repeat player who's in the market for a long time and builds up a reputation, right? And then now you're building this on the blockchain. So I guess who's holding the blockchain It's not decentralized right that might be bad in the first place if it's decentralized But I guess it's it's held by bikes and operated by exporter and I would say well, this is a very young player, right? I mean if it defaults then it's just gone So so why should I trust someone to hold this blockchain very very recently only? Well, first of all, we work with a partner here. We don't do everything ourselves I'm a big believer of an infrastructure system. I don't think you have to do and know everything yourself You can combine players in the market who are better in certain fields. You are and so It's it's not we don't have the expo e-wallet It's something that obviously our investors see on our platform and when they log into their account But the wallet itself is with one of our partners and that's where they where they see the the investment if you Really do not trust blockchain honestly, you shouldn't Invest in anything blockchain related. It's it's I think it's a simple thing that everybody should only invest in things he believes in and we do obviously have bonds as well as crowd landing Without any blockchain involved and if this is something you don't trust don't don't invest in it I think it's it's quite secure. I think it's the future and it helps our investors It just said future so let's look into the future For the last part of this this discussion so as everyone knows there is a big thing the next big thing will be the EU regulation on crowdfunding platforms and Of course, this is a European Legal Act, but as I understand the German Ministry of Finance is closely Watching the whole process or at least participating in some form. So let's maybe just ask mr. Franke What do you think will be the most interesting topics challenges of this legal act when it's passed? Yeah, it's this moment It's in the final stage of negotiations and so-called try lock and the Finnish presidency wants to finish this try lock until the end of this year We see this This is realistic and there are still a couple of issues that are that are open there the Crowdfunding regulation according to the Proposal made by the Commission in compasses Securities transferable securities that means bonds and shares as well as as loans and Now the discussion is more in in the trial of weather to broaden the scope to also include other other instruments including limited liability company shares we don't have this at the moment in In in in the German crowdfunding regulation There was a there was a discussion Among this among in the parliamentary field and also among ministries to broaden it but in the end the decision was not to do that because In the German law for a limited like liability companies The provisions that are not really adapted to a broad investor space The idea behind limited liability companies act is that there's a small and limited group of investors that come together to create a to create a Company and also transfer of shares is is a burdensome process with Notary notification required so in the end it was not included in the crowdfunding regulation Now there is some pressure from the from the European side to to broaden this this will Question that will be interesting for also for Germany and what will be certain will be that Bonds crowdfunding with with bonds was financial instruments was Securities will then be able to also be done on a cross-border basis At this moment we have opened this possibility up to 8 million euros for in Germany to sell also crowdfunding from platforms without a prospectus only with an information sheet this will will be possible if the regulation comes into force At the European level and there the question is what Limit will apply 8 million 1 million or something in between or something that will be differentiated between member states because the exemption is a mandatory up to 1 million and Every member state can increase this limit up to up to 8 million for its territory and there are some certain member states that have only increased up to 1 million and they don't want that Foreign crowdfunding platforms are able to enter their market up to 8 million euro Prospectus exempt offerings these are the questions that are open and There's certainly an issue that will alter the current Landscape for crowdfunding I will definitely come back to this to the German liability limited liability company issue because I think that's very interesting, but I think the point you made that But the very last of your of your points I think is a general point because what seems to be the problem to me is that this regulation tries to Create a level playing field for crowd investing platforms in Europe But it does not regulate the product market. So Ken, I mean, I don't really know how this should work. Can we have a real Level playing field on the crowd investing market if we don't have the same regulation on the product level Conrad do what do you think about this? Yeah, I think that's one that's one of the big Issues which I recommend that you just take into the trial org actually Because that is an open question. That's an open. That's a point which I don't find resolved in the current draft of the of the of this regulation Just today one of the Participants here showed me the most recent draft which is from June. I think and in that draft the there is a there is a very peculiar peculiar phrase in the preamble which says that the members it says in the preamble which is Not the operative part of a regulation. I don't want to bore the economists But you put the operative part into the into the into the articles, you know And in the preamble you say what you want to do and why you do it and in the preamble it says the member states shall ensure that that The regulated platform that if the regulated platforms do cross-border projects and also cross-border lending projects So if they use the license then the Then this activity shall not be Deposit taking business Neither by the crowd lending platform nor by the issuer so the regulation says if you use the If you use this license then Even for a loan project then it shall not be deposit taking business and that's for for us. That's that's quite a quite a spectacular thing because the German the German banking supervisor law since I think 50 years is different Yeah, because it says that is actually deposit taking business. That's why we do this subordination stuff So I think and I didn't really understand the regulation draft on that point at this stage I think it is I don't I don't really understand why it's not really addressed I think that is something that should be should be really discussed and Well as a practitioner, I would hope that We get a level playing field because The platforms are really keen to do that. So it's fine that they can that they can Approach investors all across Europe, but they also want to offer Let's say a German product in Spain and they want to offer a Spanish product in Germany and that requires As you said level playing field on the product basis I think just to be fair We should mention that we have that level playing field on both the services market and the product market when it comes to Securities, right? We have all of that when it comes to security So all we we are we just talk about the stuff below the security line so to speak exactly the small stuff Yeah, yeah, do we need a single market for this? I'm not so sure actually Yeah, yeah, of course we have a lot of new noise traders in securities markets as well No, but I get your point and and I think it's and I think you can save I mean It I think you can make a fair point that we actually need this and that would actually be a good idea So I don't want to to to really ridicule that but I think you wanted to respond directly to this or did I misunderstand? That's a challenge and It's my understanding that we Should very carefully then look at the and That's German regulation at a German banking act and As this is a would be a regulation that would be applicable directly The this it's There's a case to Yeah to a man see the men's and banking actor to to to to bring it into line with With the with the regulation if the regulation stands as it is So mr. Franke actually has to leave in ten minutes. So why don't we open the discussion to the floor or do well? I would have asked one question for the future of the Economist so I mean if economists think about the future. I mean they always thinking about the interest rate, right? And the saying is like everything that goes down like the interest rate can also go up at some time, right? and even though the Central Bank in the US is now decreasing interest rates. I mean thing you have Followed prosper by heart and I think you know the data like for a long time and the question would be I mean you have seen a lot of shocks, but what do you think will happen if interest rates increase again? Will you see that these platforms are just completely defaulting because they're just so much on the edge or? What is your feeling on the on that? So I think there are several and goes if interest rates increase I think we should Expect that some of the institutions will pull out. Maybe because they can find more Profit profitable opportunities elsewhere, but I think the platform is already knew that so that's why they have the whole Programmes they like landing club have about I think still it's the same they all the loans They put it into a half of them into a whole on programs and then the rest will go to the crowd So so I think they knew that and then they are they are preparing for that So how that affects the rest of the population? I think still hard to say so I wouldn't expect like a mess default So so the question would be is exporter prepared? I think it's hard to say we are prepared for everything because you never know what's what's coming But in the end interest rates will at some point Go up again. I think that's not the question of the if but more of the then To me the end the product we offering is risk associated so If overall interest rates are going up our interest rates are going up the interest rates that real estate developers have to pay are going up That's not only with regard to to crowdfunding platform, but also with regards to the bank so Because we have a certain a different level of risk associated. We are above the interest rates of The ones that that that developer would pay to a bank and this will stay the same so we will always be above that and if it's now 6% on the platform versus Let's say 1% if you if you put your money on the bank somewhere, then it's maybe nine against three so the overall Difference will I think not crazily changed there might be obviously some some ups and downs in there But if the overall market goes up in terms of the percentage we do as well All right, let's open the floor for the discussion first question Why don't you just okay? Yeah, so so we recording this I think everyone is aware of the fact, right? so yeah customers of so the The interesting thing is I want to say for having this European perspective number one is In Germany why the laws of peculiar is not so much because the Ministry of Finance isn't Competent enough or something like it's quite the opposite. Yeah, I think Mr. Franke and the crowdfunding platforms have had a Very have a very good relationship and I think the Minister of Finance has been very good in terms of keeping a balance between consumer protection and Making sure that transparency and so on but at the same time putting enough Liberties in the market to allow it to grow and so and the same is regarding to Barfin Barfin is also. I think very good compared to other supervisor agencies in Europe and approaching the market directly and also your both of your Studies for the evaluation period for last thing was really good so I think there's a good connection between the academic world which is here the platforms which is presented by Henning for instance and The government but where it is sort of the problematic issues are That in Germany unlike in other big European countries There's a lot of sort of crunchiness going on in terms of that What is a good intention of one side of the government doesn't necessarily result in a good Impact on the other side and the small countries in Europe seem to be able to manage this a little bit better For instance, the Slovakian government has set up a small FinTech workshop where they invite government officials supervisor agencies platforms FinTechs and academics and they speak about Issues which are you know on the hearts and minds of the industry and they get the results from from the academics So this is something I think it would be interesting to hear Across Europe how that if that works better, but I want to ask you how you see that in the US because you see I mean is your research used in the formulation of regulation or would you Like to have the regulation list more to the academics because you have done these papers But you have published them two years after you had these shocks So maybe by that time the regulators were already a few steps further Yeah, that's a very valid question. So I think it's always a challenge that we have to deal with as academics, right? So Reviewers are hard to convince and that's but I think also from the reviewers point of view For them the biggest goal is to make sure that you produce something in the journals. They are long lasting So that's what I got from senior scholars in the field And I think that's the common kind of understanding across the social sciences So I think if you are in computer science, then you worry about the timeliness much more than Other like general business school fields. So yes, we hope that is something that lasts But of course, there are more replication that needs to be done to validate them. So Yeah, hello, Jens Engelmann from funding circle. I just wanted to comment on the On the European perspective because I was quite surprised that this is actually being challenged and From from a platform's point of view. It is I think it's really important to to have a level playing field in Across the European Union because at the end of the day, it's a game about scale So and in the one reason for which platforms stay in their home markets and they don't expand into other into other countries It's actually that different regulation is the main entry hurdle for expansion So I think it is really important and it's a really really good and promising step and it's also from an investor perspective, I think very much Very Very positive in the end because all over Europe. We don't really have bespoke platform regulation Which would really a bit which is really tailored to the needs of retail investors. So in Germany For example, it's it's quite clear that the regulation in the FinFM for Sorry, it doesn't really take into account the way our platforms operate and So for this reason, I think this is really a very positive initiative and also on the on the banking monopoly side where This banking monopoly only exists in Germany that actually the counterparties would require banking licenses And if we want to have a bad 11 level playing field then this in fact is this the main prerequisite To to establish this playing a level playing field So I think this is really positive and that it was also really encouraging to understand that the BMF is considering to To revisit this banking monopoly maybe for for platform lending in general then So that was not really a question, but I wanted to comment on it Okay, are there are there more questions if not, then I think Lars has the last word All right. Well, then if there are no more questions, let me please thank all of our panelists Let me thank Lola Witt and Dennis Kutchuk. Where is he over there for organizing for helping organizing this event? I think it was come absolutely Reibungslos, I'm sorry for not knowing the English word right now and Thanks to Lindemann Schwänneke our sponsor who who provided this great venue and all the food We enjoyed and everything else And and thanks to the audience for participating and we're looking forward to maybe hopefully another crowd-investing Symposium in the future. Thank you very much


Step-by-step guide to legally teaching English in Japan Japan has been a popular destination for English teachers from all over the world for decades Year after year thousands of teachers come to Japan attracted by the country's fascinating culture and the lucrative salaries as well as the government funded jet program that places qualified teachers into public schools across the country. Teaching English in Japan is an exciting adventure and offers you the opportunity to experience a unique culture like a local. However, it is important to be aware of the local job market and regulations before heading off on your adventure of teaching English in Japan. Step 1. Understanding the visa situation To legally work in Japan you need to obtain a work visa. The good news is that obtaining a work visa to teach English in Japan isn't as difficult as it is in some other countries in the region. In order to obtain a work visa you need to possess a degree in any subject, be fluent in the English language and have a strong desire and willingness to pass on your language knowledge to your students. Other requirements for the work visa application for teaching English in Japan at the time of writing, bachelor's and or master's degree diploma, sealed college or university transcript, original national level criminal background check, FBI in the US, passport photos, original contract to be provided by your employer for visa processing at consulate, original passport that is valid for at least one year. Step 2. Get your TEFL certification. A TEFL certification is not a requirement to obtain a work visa for teaching English in Japan as of now. However, as Japan is such a popular teaching destination, the competition is fierce. That is why it is recommended that you complete a TEFL certification course before applying for jobs. A TEFL certificate will increase your chances of landing a great position at a renowned school and get you a higher salary than teachers without certification. It will also give you the skills and knowledge you need to lead a classroom confidently and efficiently. If you want to live and work in Japan as an English teacher, we recommend that you start your TEFL TESOL course at least one year before your desired start date. If you choose an in-class TEFL TESOL course, you will receive your certificate within around four weeks. On the other hand, an online course can take anywhere between two and six months. This depends on how much time you have and how quickly you work through the course units. Also keep in mind that while in-class courses were much preferred in the early days of the FL teaching, online TEFL courses are now just as valued. Join our four-week-in-class TEFL course option in Tokyo for a head start in teaching English in Japan. We recommend the following course options. 120-hour TEFL TESOL course. 220-hour master package. 470-hour professional package. Step 3 Do your homework and research. If you want to head to Japan to teach English abroad, do as much research about the local culture and job market as you can. Usually, new teachers moving to Japan start out working at public schools through the government-funded JET program. Later on, once they know the local work culture and have built a network, a lot of teachers branch out to work for private language academies or work directly for companies teaching English to employees. Private language academies generally operate in the late afternoon and evenings, where children and adults attend to improve their language skills in their own time. At both public and private schools, teachers earn between US $2,000 and $3,000 per month, depending on location, position and current exchange rate. Step 4 Be patient, persistent and flexible. While a lot of teachers choose Tokyo as their new home base in Japan, there are a lot of other exciting cities and towns across the nation. It's also worth noting that the cost of living in Tokyo is among the highest in the country and even the world. Other popular locations for teachers are Kyoto, Osaka or even the beautiful vacation island of Okinawa. The convenience of Japan's bullet train and express bus systems allows you to travel between cities very easily. Step 5 Apply for jobs. Once you have your TEFL certificate in hand and understand the local job market, you are ready to start your job search. All enrolled ITTT students and alumni have access to our lifetime job assistance, including our job boards. We have a large network of recruiters and schools in Asia with whom you can work with to find the job offer that suits your needs. We work with a range of renowned recruiters who specialize in the Japanese market and we would love to connect you with them. Besides our own connections and the ITTT job board, you can also search for recruiters in Japan via an online search. These types of agencies are a great place to start because they know the local job market and can set up interviews for you with suitable schools. Are you ready for your Japan adventure? Apply now for your TEFL TESOL certification course and start teaching in a matter of months. Speak with an ITTT advisor today to put together your personal plan for teaching English abroad. Send us an email or call us toll free at 1-800-490-0531 to speak with an ITTT advisor today. Teaching English in Japan, the salary and budget guide. The following guide will help you answer the question, how much can I earn and save while teaching English in Japan. You will also find information on the local cost of living in order to figure out how much to budget for when moving to Japan. The typical salary for English teachers in Japan. Japan has been a popular destination for teaching English as a foreign language for decades. With the government-funded teacher placement program called JET, there are a lot of options for English teachers to find a suitable position all over the country. The cost of living in Japan has increased significantly in recent years which means it is no longer the top destination for saving large amounts of money in Asia. However Japan still has plenty to offer both new and experienced teachers. As a guide, you should expect to earn somewhere between 200,000 and 600,000 yen, currently $2,000 to $6,000 US per month. If the job pays by the hour then a figure of around 2,500 yen, $25 US per hour would be typical. The salary also depends on where you are located in Japan. The highest salaries are paid in the big cities, especially Tokyo, but the cost of living there is also the highest. There are many smaller cities and towns all across Japan looking for TEFL qualified teachers where the salary is competitive and the cost of living not as high as in the capital. Other benefits to expect when teaching English in Japan. Besides the salary, most teachers in Japan also receive free housing or a housing allowance from their employer. Additionally, most schools pay for the round-trip airfare for their teachers and healthcare is also very affordable. There is also usually a contract completion bonus offered. How to earn extra cash while teaching English in Japan? One popular option for teachers looking to top up their earnings is to take on private students in their free time. Most private lessons are around 3,000 yen, $30 per hour, which can go a long way to making your stay in Japan even more comfortable. The cost of living in Japan. According to the latest statistics from Spatistin, Tokyo is the third most expensive city to live in Asia after Hong Kong and Singapore. However, the competitive salary and attractive benefits as an EFL teacher in Japan still allow you to live comfortably. Below, we break down the cost of living in Japan for individual aspects. Cost of living in Japan. Food. Shopping at local markets and eating at local restaurants drastically reduces your expenses and also gives you a deeper insight into local culture and the Japanese way of life. Milk. 10. 186.53 yen. Eggs. 12. 226.87 yen. Apples. 1 kg. 814.00 yen. Chicken breast. 1 kg. 797.50 yen. Rice. 1 kg. 558.33 yen. Bottle of water. 1.5 L. 122.58 yen. Bottle of Japanese beer. 5 liters. 301.29 yen. Cost of living in Japan. Leisure activities. Japanese people love going out with friends and family to have a good time. Whether it's eating out at a good restaurant, singing their soul out at Karaoke or going to a club in the city, Japan's leisure activities have something for everyone. 3-course mid-range restaurant dinner. 5,000.00 yen. Quick restaurant meal of rice or ramen, 1,000.00 yen. 1-month fitness club membership, 9,842.11 yen. Tennis court rent, 1 hour on weekend, 2,421.43 yen. Movie ticket, international release, 1,800.00 yen. Cost of living in Japan. Transportation. Japan is known all over the world for its modern and efficient public transit network. The bimes and subways in the cities are fast and reliable, and the bullet trains are among the fastest in the whole world, connecting the cities of the country with one another. Metro ride. 200 yen. Taxi rate per km 410 yen. Start fare 475 yen. City bus. 200 yen. Monthly bus in subway pass. 10,000 yen. Subway pass. 10,000.00 yen. Cost of living in Japan. Travel in Japan and beyond. Japan is an incredible island nation with lots of things to see and do in your free time. The bullet trains are incredibly fast and affordable and domestic flights to other parts of the country are also quite cheap. Plus, you can visit neighboring Asian countries like South Korea and China in just a couple of hours, one night in a mid-range hotel. 15,000 yen. High speed train, Tokyo to Osaka, 2.5 hours. 18,000 yen. Slow train, Tokyo to Osaka, 3.5 hours. 15,000 yen. Flight, Tokyo to Okinawa, 2.5 hours. 12,700 yen. Flight, Tokyo to Seoul, 2 hours, 7,200 yen. Sample monthly teacher budget. To give you an example of how an English teacher in Japan spends their salary, here is a sample monthly budget. Gross income, salary. Average salary 280,000 yen. Rent. Zero, paid for by employer. Utilities, electricity, gas, water. 22,500 yen. Phone and internet. 4,700 yen. Food. 25,000 yen. Insurance. 3,000 yen. Remaining disposable income, 224,800 yen. APROX. $2,000 USD. How much you can save when teaching English in Japan? As you can see from the sample budget above, the competitive salaries in Japan allow you to save quite a lot of money during the length of your contract. Because rent is often paid for by the employer, you will be able to save money that would otherwise go on housing. Depending on your lifestyle, ESL teachers in Japan are easily able to save anything from $500 to $1,000 per month. Are you ready to teach English in Japan? For the best possible start to your teaching career in Japan, why not take our in-class TEFL certification course in Tokyo? You can also get more information about living and teaching English in Japan via our Japan country page. Apply now for your TEFL-TESOL certification course and start teaching in a matter of months. Speak with an ITTT advisor today to put together your personal plan for teaching English abroad. Send us an email or call us toll-free at 1-800-490-0531 to speak with an ITTT advisor today. The Japan Exchange and Teaching JET program. All you need to know and how to apply. The Japan Exchange and Teaching program is not the only means to teach English in Japan, but it is one of the most popular programs out there both for aspiring teachers and those who wish to pursue other fields. I first joined this program a little over a year ago. In the short time since then, I've gained incredibly valuable experiences through my work as an assistant language teacher. Local perfectural governments and larger government bodies, including Japan's Ministry of Foreign Affairs, manage the JET program. They hire alts from English-speaking countries all over the world to increase Japan's international understanding at the level of local communities. Japan is an attractive country to teach in because teachers hold a certain respect in society and English language knowledge is highly valued. On top of that, living in Japan can be a real adventure. The country is a unique blend of old and new with far too many hidden gems to count. Wherever you go in Japan, it will quickly become your favorite place. The History of JET. The JET program was founded in 1987 in the hope of improving Japan's internationalization through language education and cultural exchange. Today, JET is one of the largest teaching exchange programs in the world. Since the program's founding, the number of participants has increased from 848 in its first year to 5,528 participants in its 32nd year. The number of countries participating in JET has also grown from 4 to 54 in that same time. Duties of an assistant language teacher. An alts role is to supplement the English program of one or multiple schools. This mainly includes team teaching English classes with Japanese teachers of English, JTEs. It may also include activities outside of class such as preparing students for speech contests, helping with the English club and even participating in annual school events. A popular saying within the JET program is that every situation is different. How actively you contribute to classes and what sorts of tasks you may be asked to do outside of class will depend on the schools schools you work in. For example, if you're assigned to work at the high school level, it's likely you'll only work with one school and be responsible for a decent amount of lesson planning. On the other hand, if you're assigned to work at the elementary or junior high school level, you'll probably work with multiple schools and your JTEs will be in charge of almost all of the lesson planning. In my case, I teach at three different junior high schools and occasionally visit elementary schools. In some of my classes, I often contribute activities and special lessons. In other classes, I mostly run repetition drills and model a native English speaker's pronunciation. Every fall, I help with English speech contest preparations and school festivals. In December, I get to visit kindergarten dressed up as Santa Claus or an elf. On top of my regular duties I've also been able to start some things myself. Every month, I make English bulletin boards for my schools and I also run activities during lunch. How to apply for the JET program? Since JET is a well-known option for working in Japan, the application process is competitive. However, since alts are assistant teachers, it's possible to be accepted without having years of education experience. That said, you will need at least a bachelor's degree plus experience with kids or instructing. If you hold a degree related to education or Japan, that can help to boost your application. Holding a TEFL TESOL certificate can be another way to boost your application, although you aren't required to have a certificate to be accepted. Every fall, JET's application is available on the program's website or through related embassies and consulates. The deadline to gather and submit all of the required materials is usually in November. If you're a university senior and interested in applying to JET, you can start your application before you graduate so long as you provide proof of your graduation later on. This is what I did during my application process and I ended up leaving for Japan just about a month after I graduated. If your application passes the first stage of selections, you'll get an interview. This will happen in February at an embassy or consulate in your home country. You can choose to have your interview at whatever location is easiest for you to get to. In March or April, you'll receive the final decision on your application. You may be officially accepted, officially rejected, or marked as an alternate candidate. If you happen to get marked as an alternate, don't lose hope just yet. In the time that I've been on JET, I've met two alts in my city who were alternates and were accepted in the end. After you're accepted, JET will assign you the perfecture in town city that you'll be working in. Your flight to Japan and any other travel expenses needed to get you to your assigned location will be covered by JET. Most alts arrive towards the end of Japan's summer vacation. This gives you time to settle into your new home and attend the general and perfectural orientations, which are mandatory for all new jets. These orientations are really helpful, especially if you've never been to Japan before. They include tips for daily life in Japan, workplace etiquette, and even some basic Japanese lessons for anyone who needs them. Remuneration and living. Housing situations will be slightly different for every jet. In my city, alts live in places that are either owned or subsidized by the city's board of education. These places include two small houses and several apartments. The rent in these places is ridiculously cheap compared to what I'm used to. My rent is 10,000 yen, about 100 United States dollars a month, plus utilities, but since I live alone, I manage to keep my utilities costs pretty low. Salaries for alts will start at about 3.36 million yen a year. A small raise will be added to that amount for every additional year and alts stays on the program. This salary is plenty to live on in Japan, especially rural Japan. In the time that I've lived here, I've been able to take care of all my living necessities, pay off a good chunk of my student loans, and travel around Japan during school holidays. Rewards of jet. Although contracts with jet can only last up to five years, the experiences you gain on the program count. You will most likely be placed in a little-known or rural area. This means you will probably be one of the only foreigners your students get to spend an extended period of time with. This adds incredible value to what you do because if your students never visit a foreign country, several of my students have told me they don't want to travel abroad, they still have a chance to learn about other cultures and people through you. Not to mention, your teaching style will probably bring a good change of pace. Much of the Japanese education system is focused on study activities and tests. Both my teachers and my students really appreciate it when I make a game of Jeopardy to review the last textbook unit or volunteer to teach a recipe from my home country. Your presence can have a lot of value outside of school as well. As an alt, you can find a lot of ways to volunteer in your communities such as running a booth at international festivals, promoting tourism in your area, or fundraising for study abroad scholarships.  The people you work with can be a wonderful part of the job as well. Even though I never had any experience in a formal classroom, before I came to Japan, all of the teachers I've worked with have been very helpful and welcoming. My students are also incredibly charming. In many ways, junior high school students in Japan are the same as junior high school students in any other country. A lot of my students enjoy school, but a lot don't too. Still, students in Japan are taught to respect their teachers and most are very friendly. On top of all of this, alts will find many opportunities on jet to learn something new and improve themselves. The Council of Local Authorities for International Relations, one of the larger government organizations behind jet, offers educational grants and online courses for jet participants. These include grants to earn a TEFL test alt certificate, online Japanese lessons, and testing fee reimbursements for anyone who can pass the top three levels of the Japanese language proficiency test. Common challenges for alts. The Japanese school system is centered around standardized testing and the main reason students learn English is that it's in high school and university entrance exams. For this reason, many of the classes you will teach as an alt are geared towards the purpose of passing tests. This doesn't necessarily mean that you will always teach to the test. Many of my JTEs actively try to run their classes in a way that puts English in a context outside of exams. However, students still have to pass exams to go to high school and university. In other words, there will be many classes when you have to teach what's in the textbook and on the test. Engaging with students can sometimes be difficult too. Many of my students, especially in the higher grades, are terrified of making mistakes in front of their classmates or teachers. Add this to the fact that they've probably had very little practice with free conversation and they can be easily daunted by talking with an alt. Class activities that require students to work individually may also be daunting for similar reasons. However, this may change slightly the longer you stay in Japan. Once the students become used to you and how you contribute to the class, they can become more comfortable. Finally, depending on the alt, daily life in Japan can come with its challenges. While it's possible you may be placed in a larger, tourist-friendly city like Tokyo or Kyoto, it's more likely you'll be placed in a small city or town. Aside from classes, almost every situation inside and outside of school will be conducted in Japanese. People will still be friendly towards you and anyone who knows any English will try their best to communicate with you. However, there are still times when you can really feel the weight of the language barrier. The Jet Community The community I found in Japan is one of my favorite things about jet. Nationwide and in every perfecture, there is a chapter of a jet, association for Japan exchange and teaching. A jet is an organization run by jets for jets. They organize community events throughout the year, offer resources for teaching and skill development and generally support and connect jets in every way they can. You don't have to worry about making friends in Japan because you can definitely find them through a jet. Jet also has an extensive support network for more serious situations. If a jet participant needs help with mental health support, the Council of Local Authorities for International Relations, CLARE, who offers several different services. These include free online counseling, assistance in covering the costs of in-person counseling and emergency hotlines. A jet runs a confidential listening and resource hotline as well. In the case of natural disasters, CLARE and a jet have communication networks in place to account for every jet participant's safety. Both organizations also distribute detailed information about how to prepare for a disaster beforehand. On top of all of this, leaving jet doesn't mean you have to leave the community behind. Jet alumni associations exist in every country that participates in jet and every participant who finishes their time on the program is welcome to join. Common challenges for alts The Japanese school system is centered around standardized testing and the main reason students learn English is that it's in high school and university entrance exams. For this reason, many of the classes you will teach as an alt are geared towards the purpose of passing tests. This doesn't necessarily mean that you will always teach to the test. Many of my JTEs actively try to run their classes in a way that puts English in a context outside of exams. However, students still have to pass exams to go to high school and university. In other words, there will be many classes when you have to teach what's in the textbook and on the test. Engaging with students can sometimes be difficult too. Many of my students, especially in the higher grades, are terrified of making mistakes in front of their classmates or teachers. Add this to the fact that they'd probably had very little practice with free conversation and they can be easily daunted by talking with an alt. Class activities that require students to work individually may also be daunting for similar reasons. However, this may change slightly the longer you stay in Japan. Once the students become used to you and how you contribute to the class, they can become more comfortable. Finally, depending on the alt, daily life in Japan can come with its challenges. While it's possible you may be placed in a larger, tourist-friendly city like Tokyo or Kyoto, it's more likely you'll be placed in a small city or town. Aside from classes, almost every situation inside and outside of school will be conducted in Japanese. People will still be friendly towards you and anyone who knows any English will try their best to communicate with you. However, there are still times when you can really feel the weight of the language barrier. The jet community. The community I've found in Japan is one of my favorite things about jet. Nation-whitened in every perfecture, there is a chapter of a jet association for Japan exchange and teaching. A jet is an organization run by jets for jets. They organize community events throughout the year, who offer resources for teaching and skill development and generally support and connect jets in every way they can. You don't have to worry about making friends in Japan because you can definitely find them through a jet. Jet also has an extensive support network for more serious situations. If a jet participant needs help with mental health support, Claire offers several different services. These include free online counseling, assistance in covering the costs of in-person counseling and emergency hotlines. A jet runs a confidential listening and resource hotline as well. In the case of natural disasters, Claire and a jet have communication networks in place to account for every jet participant's safety. Both organizations also distribute detailed information about how to prepare for a disaster beforehand. On top of all of this, leaving jet doesn't mean you have to leave the community behind. Jet alumni associations exist in every country that participates in jet, and every participant who finishes their time on the program is welcome to join. What are you waiting for? The jet program is a great path for first-time ESL teachers. In just over a year, I feel like I've learned and grown so much and I know this experience will help me in the future. If this is your first time working in a foreign country, rest assured you can find support through jet to help you be the best alt you can be. If you want to start a career in ESL, learn some new skills, make a difference in a community, or just try something new, I can't recommend the jet program enough. Apply now for your TEFL test all certification course and start teaching in a matter of months. Speak with an ITTT advisor today to put together your personal plan for teaching English abroad. Send us an email or call us toll free at 1-800-490-0531 to speak with an ITTT advisor today. The top five places to teach English in Japan. The utterly unique character of Japan has fascinated people from all over the world throughout history, and this is still very true today. Nowhere else quite captures the imagination like Japan, with its individual blend of East Asian culture and high tech modernity. Its popularity among foreign teachers is also enhanced by the strong demand for TEFL qualified IT professionals in all of its major cities, as well as many smaller towns across the country. Although competition for the top jobs can sometimes be tough, the promise of living and working in one of the world's most fascinating countries continues to draw many thousands of teachers every year. If you would like to join them, take a look at our pick of the top five places to teach English in Japan. 1. Tokyo While the hectic nature of this huge global city might not appeal to everyone, it simply has to be on our list due to the endless sights and detractions it offers, and the large number of jobs that are available. As you might expect, the cost of living is higher here than in many other parts of Japan, but salaries are usually higher to compensate. The country's famously efficient public transport system also means that many teachers are able to live in the suburbs and commute for work, which means you can save a considerable sum on housing costs. During your time away from the classroom you will never be short of things to do as the entertainment options across the city are mind-boggling, from exotic gardens and ancient temples to modern art museums and endless shopping. After dark, you will also be spoiled for choices the city offers every style of bar, cafe, restaurant, and nightclub that you can possibly imagine. The city's status as a major transportation hub also means you can easily get away from the hustle and bustle whenever you feel the need to recharge your batteries. If living and working in one of the world's largest and most exciting cities appeals to you, then Tokyo might be the perfect choice. 2. Osaka Although Osaka is also a large city that covers a huge area, it offers a slightly different atmosphere to the capital. While it is still a modern city with a great infrastructure, there is a certain grittiness about Osaka and its residents that sets it apart. Teaching jobs are widely available in the downtown area and right across the city's many districts, with options ranging from teaching young children right through to adults at university level. In comparison to Tokyo, the cost of living is more affordable, however, competition for the best paying jobs is often quite strong, so you might need to work your way up the ladder rather than start at the top. As you would expect from a big city, there are plenty of attractions to explore in Osaka at any time of the day or night. As well as the city's many traditional sites, such as temples, gardens, and shrines, there are plenty of modern attractions including Universal Studios Japan which offers no fewer than five roller coasters and a dazzling array of other rides. Osaka is also particularly famous as a culinary destination and is regarded by many as the best place in the world to enjoy Japanese food. One local specialty that you should look out for is Takoyaki, a popular snack that consists of grilled octopus and other ingredients in a delicious battered ball. If great food is a must for you, maybe you should consider Osaka as your teaching destination in Japan. 3. Sapporo The city of Sapporo is situated on Japan's most northerly island, Hokkaido. Although the cost of living is noticeably lower here than in our two previous cities, you will not find the same high number of teaching options as Tokyo and Osaka. The city's popularity with foreign workers also means that the local market can sometimes be harder to crack if you lack experience in the classroom. However, with persistence and hard work even first-time teachers should find they can get their foot in the door and work their way up to better positions. Sapporo's northerly location is partly what makes the city unique as it enjoys warm summers without the high humidity of many other areas, as well as heavy snowfall during the winter months which makes it a haven for lovers of skiing and snowboarding. The city is also well known for being exceptionally clean and well organized, with all the modern amenities you would expect from a major Japanese city. For those foreign teachers who do make Sapporo their home, a warm welcome awaits from its friendly local people and its diverse and tight-knit expert community. If winter sports are your passion, Sapporo is surely the obvious choice. 4. Fukuoka Although similar in size to Sapporo, Fukuoka could hardly be farther away as it is located on the southerly island of Kyushu. Despite the distance between them, the two cities offer similar destinations in terms of jobs. The market is much smaller than Tokyo and Osaka, and the competition is sometimes tough as it is a popular place for foreign teachers to live and work. Having said that, there are always options available in a variety of different schools and businesses, you just need to be prepared to do the legwork to hunt them down. In contrast to Sapporo, Fukuoka has a tropical climate that ensures warm summers and mild winters which often appeals to more teachers than the long, snowy winters of northern Japan. The fine climate, as well as the city's open, international feel, has led to a large expert community developing in Fukuoka. In your free time, you can take advantage of all the activities and social gatherings that are organized by the various expert groups and indulge in the great local cuisine and lively nightlife that can be found right across the city. If warm weather and an active expert community take your boxes, why not take a closer look at Fukuoka? 5. Okinawa If you are looking for something a little different, maybe the island of Okinawa would suit you. Situated over 600 kilometers to the south of mainland Japan, Okinawa is well known as the home of a large number of American military bases that have remained since the end of World War II. Away from these areas, you will find some of the most pristine natural beauty in the whole region. Due to the relatively small population, teaching jobs are not found in abundance, but there are a significant number of opportunities to work as an assistant language teacher, alt, in government-brown junior and senior schools. The subtropical climate of the island is popular with those looking to leave behind the long winters of North America or Northern Europe. During your stay, you should explore as much as possible, particularly some of the smaller islands nearby that can be reached by ferry or plane. Although some of these might be a little difficult to reach, the stunning beaches and coral reefs that you will find make the effort well worthwhile. While Okinawa might be a little off the beaten path, it offers a teaching location that is unlike anywhere else in the country. Also read. What is the jet program for teaching English in Japan? Are you ready to teach English in Japan? If you want the best possible start to your teaching career in Japan, why not complete your TEFL certification course at our training center in Tokyo? You can also find out more about living and working in the country via our Japan country guide. Apply now for your TEFL TESOL certification course and start teaching in a matter of months. Speak with an ITTT advisor today to put together your personal plan for teaching English abroad. Send us an email or call us toll-free at 1-800-490-0531 to speak with an ITTT advisor. Five weekend trips you have to take while teaching abroad in Tokyo. Tokyo is a dream city for many people who aspire to live abroad. It is modern yet traditional and a vibrant culture of food, fashion and popular media among other things ensures that it has something for everyone. For all its excitement, however, Tokyo is only one part of Japan as a whole. Each area of the island nation holds a distinct culture of its own, offering a myriad of experiences for travelers. Luckily, those who teach English in Japan have easy access to the country's major airports and extensive bullet train lines, meaning they can access almost anywhere else in Japan within a few hours. While living in Tokyo make the most of your experience abroad and try checking out some of these must-see destinations. Soak in the hot springs at Haken. For centuries, Haken has attracted visitors with its numerous public baths and ryokin, traditional style hot springs resorts. The mineral-rich waters of these baths provide a number of health benefits and can be accessed by both overnight guests and day trippers. Besides its resorts, Haken is also known for its natural sights. Among these, one of the most famous is the Oakudani volcanic crater. Here you can witness volcanic fumes emerging from the mountains and on clear days, you can see a view of Mount Fuji from here. Oakudani is also known for black eggs, chicken eggs which are cooked in volcanic water. The eggs shells turn black from the sulfur in the water and eating one is said to prolong one's life by seven years. Experience winter sports in Nagano. Best known for the Japanese Alps, Nagano Prefecture is a paradise for skiers and snowboarders. Slopes of varying difficulty levels are found throughout the Prefecture and other winter sports like snowshoeing and skating are also available. Hakuba, just outside of Nagano City, is a particularly famous destination. Nagano City hosted the 1998 Winter Olympics and the ski jumping stadium built specifically for the Games is still in operation at Hakuba. Visitors to the stadium can take a chairlift and elevator to the top of both jumps and take in the same view the Olympians did back in 1998. Explored Japan from the turn of the century in Inayama. After emerging from a long period of isolation, Japan began rapid modernization efforts in the Meiji Era, 1868 to 1912. Many western influences were adopted, which changed the face of the nation forever. Meiji Mura is an open-air museum that preserves examples of Meiji Era architecture from every corner of Japan. Visitors can try on period clothing, ride Meiji Era street cars, eat traditional food and play traditional games within a village of lighthouses, schools, churches, and more that were all once in use. The collection of buildings in this museum includes several important cultural properties and houses of famous figures such as classic Japanese author, Natsume Saseki. Visit a castle from the big screen in Himeji. Himeji Castle was built in 1609. It is one of only 12 castles in Japan that maintains its original structure and one of five castles designated national treasures. Film fans will recognize this castle from several different movies, including Akira Kurosawa's Ranin Kajimasha and the James Bond film, You Only Live Twice. With its extensive grounds and stunning white structure, Himeji is widely considered one of Japan's most beautiful castles. Spring and autumn are especially popular times to visit, while the cherry blossoms or changing leaves are at their peak. While visiting Himeji you can have tea in the nearby Kokengardner travel just outside of the city to visit another film site and yojai temple. Climb a sacred mountain and torii. For thousands of years, climbing Mount Dacin was forbidden because the mountain was considered a god. Today, the mountain continues to occupy a special place in the hearts of locals and is one of the most famous mountains in Japan besides Mount Fuji. From June to September, a variety of trails leading to this summit are open. Any of these can be scaled in the course of a single day, leaving time for the number of other activities Mount Dacin has to offer. These include cycling and hiking through some of the oldest forests in Japan and sampling local cuisine. Dacin beer and vegetarian dishes influenced by the mountain's Buddhist roots are just two local favorites. In addition to the sights of Mount Dacin, Tatori is also famous for Japan's largest sand dunes, Tatori Saku. Here you can try sandboarding and paragliding or just enjoy the sand in the sea from the seat of the chairlifts running through the dunes. Summers at the sand dunes can get uncomfortably hot, however, so it might be best to visit Tatori Saku in early or late fall. When are you heading to Tokyo to teach English? All of these destinations are accessible from Tokyo by train, bus or plane. Using the large number of public holidays Japan offers, usually one three-day weekend a month, it is possible to experience these five sites and more. However long you stay in Japan, there is always something new to discover. Apply now for your TEFL TESOL certification course and start teaching in a matter of months. We also have an in-class TEFL course in Tokyo where you can get TEFL certified in Japan and take part in teacher training for four weeks. Speak with an ITTT advisor today to put together your personal plan for teaching English abroad. Send us an email or call us toll-free at 1-800-490-0531 to speak with an ITTT advisor today. The most common problem students in Japan face when learning English. Japan is a country facing rapid change. Due to an aging population and a scarcity of workers, Japan is opening its borders to foreigners, many of whom speak English. This, along with the upcoming Tokyo Olympics, has led to an increase in demand for English teachers. I currently work in Japan and have had the experience of teaching English to high school Japanese students for the past year. Over the course of this year, I've learned of many problems that students in Japan face when learning English. Of those, the top three problems for students in Japan are pronunciation, shyness, and large class sizes. Differences in phonology. The phonology of the Japanese language is such that every sound ends in a vowel, save for one the end sound. It is very difficult for students to become accustomed to and pronounce the hard consonant sounds of English. Students face an additional barrier in the form of wuseigo or loan words from English. These words are commonplace and use the Japanese phonology. So for students used to saying kaningu, the word cunning is very difficult to pronounce. In addition, meanings have shifted as words have been adopted. Cunning, for example, is a word used to refer to cheating on a test and not someone who is exceptionally clever as it does in standard English. So, Japanese students face many problems as they adjust to the phonology and meanings of standard English. Students reluctance to speak. Another major problem students face here is shyness. Japan is a collectivist society. The emphasis is on the group here. Thus, students are often reluctant to speak out or state their own opinions separate from the group. This becomes a problem in the English classroom, as many assignments designed to practice spontaneous creation of language rely on students speaking their minds. Often, even students with advanced English ability are reluctant to participate in assignments such as debates, which are commonplace in the foreign language classroom in western countries. As I've learned, it isn't common in the Japanese education system for students to engage in creative assignments. Even in their native language classes, lessons tend to focus on concrete facts rather than on creativity. Even young students struggle with this and for high school students being asked to imagine what comes next in a story can invoke great anxiety and have further reluctance to participate in the class. This is a problem not only in my classroom, but in classrooms across the country. Class size in Japanese schools. The final problem I will discuss is class size. English is becoming a required subject for many Japanese students starting from elementary school. However, class sizes tend to be quite large. 30 to 40 students make up a homeroom class on average. This works fine for regular, lecture-based classes. For foreign language classes, it becomes a problem. With so many students in one room, it becomes very difficult for students to work in small groups and for teachers to be able to help individual students with their English. In such large classes, it is easy for the noise level to get overwhelming and for shy or quieter students to slip through the cracks and get away with not speaking or participating in assignments. Thus, despite many Japanese students studying English as a subject for 10 or more years, the majority of Japanese adults cannot speak English. Are you ready to teach English in Japan? In my one year of teaching English in Japan, I've learned a lot about being an English teacher and a teacher in general. However, the problems mentioned above, as well as many others plaguing the English education system here, make it very difficult for the vast majority of students in Japan to have meaningful language learning experiences. A teacher who wishes to work in Japan in the public school system will have to adapt their teaching practices, often in ways that don't agree with current educational literature in order to meet the requirements of their employer and the education department. Still, an English teacher can easily find jobs here and make a difference in the lives of learners. Despite all of these problems facing learners in Japan, it is still a wonderful country to live and teach in and one I recommend to aspiring EFL teachers. Apply now for your TEFL TESOL certification course and start teaching in a matter of months. Speak with an ITTT advisor today to put together your personal plan for teaching English abroad. Send us an email or call us toll free at 1-800-490-0531 to speak with an ITTT advisor today. Teaching English in Japan, alumni report by Gabriela S. Tell US about yourself. What is your nationality? Hungarian. What city and state are you from? Budapest, Hungary. How old are you? 37. What is your education level and background? Bachelor's degree in international communication with a specialty in East Asian international management, master's degree in social sciences with a thesis on human values and contemporary education, diploma in TESOL by ITTT. Have you traveled abroad in the past? If so, where have you been? I have been living in Japan for almost 12 years. Other than Japan, Korea, and the US, Arizona, I have been mainly to European countries, such as the Czech Republic, Slovakia, Romania, Austria, France, the Netherlands, Spain, Greece, and Denmark. Where did you study? Budapest, Hungary, and Bapu, Japan. What made you interested in going to teach English abroad? Staying in Japan made it a necessity, but I had already had experience in tutoring English in Hungary as a student. What were some of your concerns before teaching abroad? I did not have any concerns in particular. TEFL class information. Why did you decide to get TEFL certified and choose ITTT? To get better job opportunities. Which TEFL certification course did you take? I took the 250-hour TESOL diploma course. How did you like the course? I enjoyed the flexibility in terms of pace and room for creativity. How has your TEFL training helped you in your current teaching position? Rather my last position, I worked as an English teacher in a high-ranking elementary school that has a special English education system compared to regular Japanese schools. A certificate in TEFL was one of the requirements, which was my main point in taking the course, but, and of course, it gave me ideas in developing activities or lesson plans, and the confidence I gained was also helpful. Teaching English in Japan. Which city and country did you decide to teach English in, and why? Bapu and Oita, Matsuyama, and Hiroshima, Japan. How long have you been in this country, and how long do you plan to stay? 12 years. Not decided. How did you secure your English teaching job? Through Gajin Pot, a platform for jobs in Japan, studying Japanese and traveling in Japan. What school, company, or program are you working for? Last position. Nijisakone Elementary School, Hiroshima. Before that, Amic International, Matsuyama. How did you obtain your work visa? Through employment. But originally, I had a student visa when I came to Japan. Tell us about your English teaching job. In Matsuyama, I worked for a language school, where the schedule was demanding, but the job was rewarding. I enjoyed the freedom of developing my own lesson plans, and my boss and my colleagues were great people. The accommodation was provided by my employer. In Hiroshima, where I worked for an elementary school, the schedule was also demanding, but in a different way. There weren't so many classes to teach, but I was responsible for a wide range of chores as an elementary school teacher, not an alt. My husband and I moved into an apartment together that we found through a real estate agency. How did you find somewhere to live, and what is it like? As a student, I lived in a dorm, later with a host family, and then in apartments. All the places I have lived in were always comfortable and convenient in a relaxing environment. Japan Country Information. Please explain your country's cultural aspects, public transportation, nightlife, social activities, food, expert community, dating scene, travel opportunities. Cultural Aspects. East Asian history, beautiful nature, helpful people, but English is barely understood. Nightlife. Pubs, bars, pachinko, and karaoke, but only in big cities. Social Activities. Culture Centers, cooking classes, ikebana classes, tea ceremony, voluntary jobs, sport festivals, cultural festivals, etc. Food. Traditional food is healthy, mild seasoning, rice, vegetables, and seafood are essential. Expert Community. Most bigger cities have foreign communities. Dating scene. It's better to be a part of the community if you want to meet someone. Travel Opportunities. There are many beautiful places to visit, such as Tokyo, Osaka, Kyoto and also the beautiful islands of Okinawa in the south. Country Information, Budget. What are your monthly expenses? Rent. 70,000 yen for a three-room apartment plus utilities, aprox. $640 United States dollars. Food. 30,000 yen for one person, aprox. $275 United States dollars. Social activities. Going out can get quite expensive, especially in the big cities like Tokyo. However, this depends on your lifestyle. Transportation. A monthly pass for bus and subway usually costs around 10,000 yen, $90 United States dollars. Phone. 5,000 yen for a data plan, aprox. $45 United States dollars. Travel. If you do not have a Japan rail pass, a ride on the Shinkansen bullet train will be 13,620 yen one way. Domestic flights are very affordable. How would you describe your standard of living? Comfortable. Teachers in Japan are able to save quite a lot from their salary every month, but the cost of living in Japan has also risen in recent years. In your opinion, how much does someone need to earn in order to live comfortably? It depends on the place. Tokyo is super expensive, but I haven't lived there, but as a student, 100,000 yen, aprox. $915 United States dollars is enough. An average English teacher's salary is about 250,000 aprox. $2,295 United States dollars, which is enough for savings too. What advice would you give someone planning or considering teaching abroad? Make sure you get familiar with the culture of the country you want to stay in beforehand as much as possible in order to reduce the intensity of a possible culture shock. It is also a good idea to talk to people who have lived there. Learn about facilities, opportunities to make the best out of your stay and possible risks so that you don't find yourself in trouble.