MUFG Bank, Sumitomo Mitsui Mull Joint ATM Use

May 14, 2018

Tokyo- MUFG Bank and Sumitomo Mitsui Banking Corp. are considering jointly using automated teller machines, according to informed sources.

The move is designed to improve customer convenience and increase operational efficiency.

Both of the two major Japanese banks find it necessary to review their ATM networks. But the plan presents a host of challenges including how to fix fee structures.

The plan, if successful, is expected to give momentum to a trend in which banks stop running their own ATM networks.

Mizuho Bank, another major Japanese bank, could join MUFG and Sumitomo in considering the joint ATM use, the sources said.

Shinsei Bank, another Japanese bank, stopped operating its own ATMs by June 2017. It now uses ATMs run by other companies, including Seven Bank, which installs ATMs at convenience stores.

City banks, including MUFG, Sumitomo and Mizuho, operate a total of 26,000 ATMs and cash dispensers across Japan, according to the Japanese Bankers Association.

Seven Bank, a unit of retail giant Seven & i Holdings Co., runs 24,000 ATMs.

The number of ATMs is expected to decrease if cashless payments spread further. Jiji Press