In close collaboration with SAP Japan, the soon-to-be-launched finance services corporation SAP Fioneer Japan aims to drive digital finance transformation of Japanese enterprises in the Financial Services Industry (FSI) space with SAP Software Solutions.
In April, SAP and investment company Dediq announced a strategic alliance to establish a dedicated FSI unit named SAP Fioneer, slated to be launched in the second half of 2021, to cater to the needs of the rapidly evolving banking and insurance industry. Together, the two companies aim to jointly expand SAP’s financial services portfolio with a significant investment in digital and cost-effective innovations in core FSI areas such as commercial lending, retail banking, core insurance as well as insurance finance, and bank management.
SAP Japan announced that the joint venture extends to country with the establishment of the Japanese subsidiary SAP Fioneer Japan Co., Ltd. (SAP Fioneer Japan) to be launched on September 1, 2021, simultaneous with SAP Fioneer’s global launch.
“SAP has a long history of success in the financial industry. Of the top 1,000 banks and insurers in the world, over 80{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} are SAP customers. At SAP Fioneer Japan, we focus on accelerating innovation in core banking, core insurance, and financial solutions specific to the financial industry, with the goal of meeting the digital transformation and cost efficiency needs of our financial services customers,” the statement read.
As a joint initiative with SAP Japan, SAP Fioneer Japan will be headed by SAP leaders to ensure that the Japanese financial services industry will receive the same level of service and expertise as they embark on digital transformation. Ken Ishiura, who is currently the General Manager of Digital Industry Solutions Department 1, SAP Japan Industry & Customer Advisory Headquarters, will be appointed President of SAP Fioneer Japan; and Hiroshi Suzuki, President and CEO of SAP Japan, will be appointed as an outside director of SAP Fioneer Japan in addition to his current position.
SAP Software Solutions Dedicated to FSI
SAP recognises the great potential in the FSI market and through SAP Fioneer, the software giant will be able to reinforce its commitment to delivering industry cloud solutions in this fast-changing market. SAP Fioneer will offer SAP software solutions that cover the full cycle of banking and insurance operations processes while meeting regulatory requirements. The new solutions will be part of SAP’s industry cloud solutions based on SAP technologies and applications such as SAP HANA, SAP S/4HANA, and SAP Business Technology Platform.
Luca Mucic, Member of the Executive Board at SAP SE, earlier highlighted that front and center for SAP’s new FSI unit is helping customers to become more agile through digital business innovation and cloud technology. He added:
“The new unit will be very flexible and customer-centric with full autonomy to set its strategic direction. At the same time, it will be a strong member of the SAP family. Customers will benefit from SAP’s leading technology and the FSI Unit’s agility and focus on their specific needs.”
SAP Fioneer Update
In July, SAP released an update on SAP Fioneer’s investor structure in response to some concerns on compliance of the decision-making process on the joint venture with Dediq with applicable rules and the valuation of the shares in SAP Fioneer. The enterprise software shared that, based on the evaluation of two independent, external experts commissioned by the Audit and Compliance Committee of the SAP Supervisory Board, the valuation is fair and that the decision-making process was in compliance with existing regulation.
Moreover, Hasso Plattner Foundation has decided to cede its passive investment in SAP Fioneer to an equivalent investor. The statement emphasised that the funding of SAP Fioneer, exceeding €500M, is not impacted by the Hasso Plattner Foundation’s planned sale of its indirect, passive stake in SAP Fioneer.
