CEO HORIZON

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Masaichi Kitayama
Capital Asset Planning, Inc.

Masaichi Kitayama

CEO https://www.cap-net.co.jp/

My History

I decided to become a certified public accountant (CPA) during my university years after my family’s business, originally founded by my grandfather and later managed by my father, went bankrupt due to the ripple effect of a publicly traded company they had been working with.I was deeply inspired by the CPA who developed the company’s restructuring plan, and when my father suggested I become a CPA myself, I set out to earn the qualification. After graduation, I joined an auditing firm, where I primarily worked with financial institutions like banks and securities firms. This experience eventually led me to establish my own company.

One pivotal moment in my career came during an audit of an asset management firm when I discovered the English version of a spreadsheet program called "Lotus 1-2-3." I was immediately drawn to its efficiency in calculating the net asset value of investment trusts. Shortly thereafter, during a business trip to the U.S., I came across a book titled "Financial Modeling for Lotus 1-2-3" in a New York bookstore. The book sparked my interest, and I realized its relevance to the Japanese financial industry. I pitched the idea of publishing a book titled "Lotus 1-2-3 for Financial Professionals" to a publisher, and they quickly agreed. The book was published soon after.

A week after the book’s release, a life insurance company approached me with a request to build a system based on the concepts in the book. This event became the catalyst for starting my own company.

At the beginning, we focused on providing system integration solutions for the financial sector. Over the years, we’ve successfully adapted to major shifts in Japan’s financial landscape, such as the mutual entry of life and non-life insurance companies in 1996, the launch of defined contribution pensions in 2001, the 2006 implementation of the Financial Instruments and Exchange Act and amendments to the Securities Exchange Act, and the 2010 revisions to the Financial Instruments and Exchange Act. I believe that our ability to stay flexible and respond to these changes is why we’ve managed to sustain the business for over three decades.

The Present

Since 1990, we have been integrating financial technology (FT) and information technology (IT) to provide specialized system integration services tailored to the financial industry. Today, we continue to drive the digital transformation (DX) of legacy systems for banks, securities firms, and life insurance companies. Our offerings include custom system development, as well as subscription-based access to comprehensive personal asset management systems hosted on the cloud. Of Japan’s 43 life insurance companies, 23 are our clients, and we work closely with major banks and securities firms to provide wealth management platforms, contributing to Japan’s efforts to become a "Leading Asset Management Center."

While the Japanese government and the Financial Services Agency have called for Japan to become a Leading Asset Management Center since 2022, I believe we are still far from achieving that goal. Public understanding of global diversified investments is limited, and to make this vision a reality, financial service providers must prioritize customer-centric practices, alongside broader efforts to educate individual investors. It’s vital that investment concepts are communicated in a clear and accessible way.

To achieve this, I place great importance on two key pillars: "science" and "art." It’s not just about emphasizing the scientific principles behind investment theory—it’s equally important to convey those ideas in an understandable way. This requires well-thought-out UI/UX design that considers how users interact with systems and apps, and what kind of experience they have. A memorable design, along with the effective use of animations, plays a crucial role in creating lasting impressions.

For the Future

Currently, 85% of our revenue comes from life insurance companies. However, as Japan's average age approaches 50 and the population continues to decline, we expect a decreasing demand for death benefits, which traditionally provided financial support to families in case of the loss of the household breadwinner. Instead, the focus is shifting toward ensuring a prosperous retirement in a 100-year life era, and managing assets for hospitalization and long-term care will become more critical.

In response to this trend, we plan to reevaluate our business portfolio and expand our sales efforts toward financial advisors at banks, securities firms, and intermediaries. Simplifying the communication around systems like the new NISA, DC, and iDeCo, as well as using generative AI to provide real-time, 24/7 asset management advice—potentially through avatars to ensure clear explanations—will be essential steps toward establishing Japan as a Leading Asset Management Center. Additionally, system platforms for independent financial advisors, which are growing rapidly in the U.S. and Europe, will be key.

We are also considering expanding into overseas markets, particularly in East Asia, where younger populations and high growth potential offer a distinct and attractive market environment compared to Japan.

Furthermore, we are committed to offering comprehensive "family office services" that support wealth management, inheritance, and tax planning for high-net-worth individuals. While Japan may not have as many ultra-high-net-worth families with assets exceeding ¥10 billion like in the West, there is a growing number of families here with a strong desire to contribute to society. To meet their needs, we plan to establish a "multi-client family office" that provides integrated services for wealth management, inheritance, tax planning, and investment strategies. By offering these advanced wealth management services domestically, we aim to support Japan’s transformation into a Leading Asset Management Center.