Adding up the differences from fiscal 2013, the cumulative total would be 0.9 trillion yen in Case 1 and 3.4 trillion yen in Case 2. However, the economy improved, stocks rose, and interest rates declined due to QQE, so credit costs have decreased and realized gains/losses on stockholdings and bondholdings have increased as a result of QQE.
Government agencies and banks need digital solutions to efficiently deploy funds to target recipients of these billion-peso support measures and loan programs. Fintechs can be and can provide the needed solutions. For instance, Fintechs can offer turnkey loan origination and underwriting platform for the government’s direct lending programs. Another could be digital solutions for MSMEs pivoting to e-commerce.