Shift to online services pushes MUFG Bank to reduce number of ATMs

Maria Nikolova

Online sales and cashless payments lessen the need for personal banking services such as cash withdrawals.

The growing digitalization of banking services is pushing MUFG Bank, a unit of Mitsubishi UFJ Financial Group Inc (TYO:8306) to reduce the number of ATMs. A report by the Nikkei Asian Review says MUFG Bank intends to reduce its Japanese ATM network by 20% through fiscal 2023.

The change reflects the rise in online sales and cashless payments, which lessens the need for personal banking services such as cash withdrawals. The number of MUFG Bank customers using online banking has increased by 40% over the past five years.

The newspaper reports that MUFG Bank currently operates 8,141 ATMs across Japan, and intends to cut this number to around 6,700.

The change will include reducing the number of machines at individual sites and consolidating ATM locations around train stations. However, the bank will install smaller machines and state-of-the-art models that enable users to pay their utility bills at convenient locations.

MUFG Bank also aims to make online banking more convenient. The company plans to introduce improvements, such as a digital passbook that lets users see 10 years of transactions.

MUFG Bank’s medium-term business plan through fiscal 2023 aims for halving the number of locations with traditional teller windows as the company switches to smaller branches offering more self-service options.

A similar push was announced by Singaporean bank OCBC in July this year. The bank intends to convert bank tellers into digital ambassadors and service executives. OCBC Bank expects to see half of its bank tellers upskilled to perform higher value-added financial services as it installs the latest ATMs and digital service kiosks at 35 of its branches by 2020.

OCBC Bank has allocated $14 million for the deployment of the new ATMs and digital service kiosks in Singapore. These new machines function like “mini branches” and currently allow customers to perform 15 of the most frequent bank counter services such as cash deposits, cash withdrawals above daily ATM withdrawal limits, selecting the denomination of notes withdrawn, simultaneous cash and coin deposits, updating customers’ personal details and account and card related requests. These can be performed in a completely paperless and straight-through way.

Read this next

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

Digital Assets

Zodia Custody and SBI Digital Asset Holdings launch JV for crypto asset custodian in Japan

“Zodia Custody is both proud and excited to be working with SBI DAH to help set up SBI Zodia Custody; the first tier 1 crypto asset custodian for institutions in Japan.”

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

<