The leader interview series introduces the personalities and philosophies of top executives within PayPay Group. In this edition, we feature Maki Kemp, the head of the Audit and Control Division.
Maki Kemp
Division Head, Audit and Control Division
After being assigned to the systems team of a Japanese major bank as a fresh graduate, Maki acquired expertise in how to develop, implement, and project manage systems. Working in both Japan and the USA, she became familiar with a variety of systems including domestic accounts, payment, and market front systems. Following a transfer to an audit firm, she continued to build experience in Japan and the UK, obtaining experience working for a global commercial bank and investment bank, before joining PayPay in January 2024. As the Division Head of the Audit and Control Division, she is responsible for internal audit and internal control.
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Captivated by the Concept of Audits that Propel Projects Forward, Leading to a Career in Risk Management
Please Share Your Career Journey
After joining a Japanese major bank after graduating university, I was assigned to the systems department, where I gained experience in the development and implementation of domestic accounting systems, payment systems, and Global Market systems in both Japan and the United States. This is also where I first learnt how to manage projects.
My interest in audit-related work began when I was transferred to the systems department at the U.S. branch and was charged with leading a project to replace an outdated system. At that time, I worked primarily from a project management perspective. However, through working alongside the U.S. audit team, I was exposed to a new perspective. Their high-level comments such as “The essence of testing is to prevent losses caused by errors” and “What are the potential risks?” sparked my interest in a role that can preemptively spot risks and eliminate problems to ensure the development of a more complete product. Additionally, I believed my broad experience in financial operations and system development across different platforms would be beneficial in audit, as it covers various systems and operations from multiple perspectives.
As a result, I transferred to an audit firm to gain specialised expertise. This was during the period when audits in the U.S. became more stringent following the Enron scandal. Due to the rapid increase in client needs, I was inevitably assigned to handle compliance with the U.S. Sarbanes-Oxley Act (SOX). Amid the influx of work from American companies’ Japanese subsidiaries and Japanese companies listed in the U.S., I tirelessly completed job after job, gaining experience in both external audits and the building of internal controls, including those regarding the U.S. SOX Act.
Why Did You Develop an Interest in Fintech and Join PayPay?
My interest was initially piqued during a visit to Thailand, where I witnessed the widespread use of QR code payments in the streets. Unlike the UK, where I was living at the time, Thailand had a world where cash and credit cards are for tourists, whereas locals use QR code payments. With just a mobile phone and a piece of paper with a printed code, payments could be made, and I recognised how this could be implemented at a low cost in various regions. I was impressed by how an innovation in cashless payments could bring benefits to both customers and stores. After I returned to the UK following my Thailand visit, I learned about an internal control position at PayPay, which sparked my interest. I had also heard positive feedback from my friends in Japan about the company, with statements such as “PayPay is really convenient” and “I can’t live without it in my daily life.”
However, I was concerned about PayPay’s business model. PayPay has a completely different revenue structure from traditional banks and securities companies. During the interview, I asked in detail about how PayPay plans to develop its growth strategy and what its revenue model looks like. I was convinced by the management’s forward-looking approach, which includes building up deals as small as 10,000 yen per person as opposed to targeting large profits from corporate clients, alongside aiming for growth by adapting various financial businesses. This affirmed my decision to join the company.
Moreover, as PayPay aims for an IPO, ready to capitalise on its growing status as a crucial aspect of social infrastructure, I wanted to be involved in strengthening internal controls during this process, which would be an exciting challenge for me to tackle.
A More Robust Company with the Twin Engines of Audit and Control
What Are the Characteristics of the Audit and Control Division?
The Audit and Control Division is composed of three departments: the Internal Audit Department, the Internal Control Department, and the Audit and Control Planning Department, which is responsible for overall audit and control planning. The Internal Audit Department, in the context of the so-called three lines of defence in risk management, handles the third line of defence. It audits the first line (business departments) and the second line (risk management and compliance departments) from the perspective of whether there are any violations of laws and regulations, and whether the business is being operated appropriately, providing assurance as necessary. The Internal Control Department is working across the company to build an appropriate internal system that stakeholders will regard highly and trust, which is crucial as PayPay aims for an IPO.
What Are the Characteristics of the Audit and Control Division?
One unique feature is that both audit and control are housed within the same division. Due to their different natures, especially in financial institutions, it is common to completely separate audit and control, and I do feel the challenge of leading both functions simultaneously. However, PayPay, having been founded just six years ago, is an organization that requires rapid growth. The advantage of having integrated operations is that we can build a structure that includes an audit perspective and quickly strengthen internal controls. I have broad experience in internal controls, risk management, compliance, and audit, so I am leveraging all my knowledge and experience to strengthen the company’s structure.
Additionally, rather than imposing textbook answers on the company, we prioritize understanding the content of management meetings and the company’s direction, and how we can contribute to business growth in our division’s operations. For instance, how does our activity tie into our current priority of creating group synergy? Even seemingly small tasks are always connected to the company’s big goals, and I make sure to convey the significance of our efforts to the team.
What Kind of People Are in the Audit and Control Division?
You might assume many members come from financial institutions, but the team has diverse backgrounds. There are members for example from business company controls and audit firms, allowing us to audit and control from a wide range of perspectives. Given the many services within the PayPay Group, there are often instances where our teammates’ individual backgrounds help us to appropriately evaluate PayPay’s business and services.
A positive external reputation about the Audit and Control Division
What Do You Want to Achieve at PayPay in the Future?
Firstly, I aim to fulfil my core duty and achieve the major goal of an IPO, contributing to the company’s expansion. In the process, I want to build the reputation of PayPay’s Audit and Control Division. The audit industry is a surprisingly small world, and you often hear about certain companies having a deep rift between audit and the business, or that another audit department supposedly has a positive and easy-to-work environment. These rumours often become a factor in choosing a company to work for, and I want PayPay to have the reputation of a place where one can have challenging and rewarding experiences that are not available elsewhere.
A positive external reputation is a good indication that strong internal controls are in place and the company is being operated appropriately. If we can also convey the appeal of being involved in launching services never before seen by the world, I believe the Audit and Control Division will become a place that everyone is interested in.
A Message to Our Readers
PayPay’s Audit and Control Division offers an environment where you can take on significant challenges while leveraging your previous experiences. PayPay is linked to a vast number of services, including those of group companies and merchants. New services often arise through collaboration, and as the PayPay economic sphere expands and deepens, the number of unique service offerings will increase. One continuous challenge for our division will be to consider what kind of internal controls are necessary for these unique services and what perspectives are required for audits.
Contributing to innovative services comes with both fulfilment and difficulty. The Audit and Control Division must always adapt flexibly to a constantly changing environment and have a mindset of learning new things independently. Those who require “precedent” to reach a conclusion would not fit in at PayPay. We want to work with people who can think wholeheartedly about how to contribute to delivering new, unprecedented services from an audit and control perspective, while also protecting our customers and business.
Current job openings
*Job openings and employee affiliations are current as of the time of the interview.