FinCity.tokyo

Member interview: Vistra

Global back-office service provider Vistra, which currently operates in 50 markets around the world, recently became a member of FinCity.Tokyo. 
We met with Managing Director for Japan, Kevin Smythe, to hear more about the company’s operations here.

What does Vistra do?

We’re a back-office outsourcing firm focused on international expansion. We help companies set up in a new country with payroll, social insurance, tax accounting, banking support, those types of things. In Japan, there’s a bit of a barrier to understanding how to get started, but as long as you have someone local who really knows what they’re doing, things can happen quite quickly, smoothly, and effectively.

I got a sense of the challenges companies face doing business across borders when supporting multinational clients as an accountant at Ernst&Young in the US. After coming to Japan to meet with regulators for a Japan-affiliated business I worked for, I found an interest in helping other companies with the same things.

Over the last few years, we have seen lots of asset managers and technology companies coming into Japan. The types of companies we typically support are people-focused companies that don’t require a high amount of capital expenditure when first entering the market. They just need to hire those key people, get an office or a shared office space, and start doing what they want to do in Japan.

How do you view Tokyo as a location for foreign businesses and financial firms?

Organizations like FinCity.Tokyo and the JFSA have programs that simplify the process of setting up for asset managers in Japan. For instance, the ability to apply for financial licenses completely in English has really sped things up and gives these firms a lot more legal options, such as access to law firms to work with to get through these processes. What’s also great about Tokyo is the network of experts, which asset managers need. Every law firm, accounting firm, BPO firm, and recruiter has an office in Tokyo, so you really have all of the tools you need in one place. It’s a great place for foreigners to live, too.

In the current global environment, why should Japan be on investors’ radar?

Now that Japan has achieved the Bank of Japan’s inflation target, that’s going to unlock a lot of investment and growth opportunities. That’s an economic signal that should be exciting to people that are looking to invest and grow in Japan. Plus, it’s the fourth largest economy, so there’s a huge market to tap into. Also, it’s politically stable, with a strong regulatory framework.

What would be your advice for financial firms looking to expand in Tokyo?

Make sure you have a local expert with connections in the industry who knows what’s going on. That first hire is so key, so don’t rush into it. It needs to be someone that’s connected because relationships are huge here. There’s a reason recruiters are such a big part of hiring in Japan.