It all began, explains Shigeyoshi Ki-oshita, with the family kimono shop. After the second world war, when many Japanese were short of cash, people would ask to borrow money against their kimonos. With his expert eye, Mr Kinoshita's father knew how much to lend. Thus the family moved into pawnbroking, and later into unsecured consumer loans. In the early days, credit-risk assessment was based largely on trust. Now it is more sophisticated, and remarkably speedy. Applicants for loans can go to automatic booths, where their faces are recorded on camera and their documents are scanned. If their applications are approved, a plastic card that allows them to draw cash from ATMS is issued on the spot. Mr Kinoshita's business grew into Acom, Japan's second-biggest consumer-finance company. About 70% of its borrowers are men, mostly spending the money on leisure and entertainment. They often keep their borrowing secret from their nearest and dearest. Borrowing is still stigmatised, and the industry has a shady reputation. The boss of Takefuji, the biggest consumer-finance outfit, recently pleaded guilty to wiretapping.
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