Regional bank branches increasingly adopt lunchtime breaks

April 29, 2018

Nagoya- An increasing number of regional banks have introduced lunchtime breaks in their service hours at branches and other outlets to rationalize their operations, industry people say.

On April 16, Bank of Nagoya introduced a one-hour break from 11:30 a.m. in the service hours at its Kiba branch in Nagoya, Aichi Prefecture, central Japan.

Previously, the branch's six staffers took their lunch breaks in turn. "Because of this, there were times when our service counters became understaffed," said branch manager Sakurako Toyama.

Toyama expressed confidence that the new recess time will enable the branch to improve its service through rationalization.

A banking law revision in September 2016 has allowed banks to adjust their business hours flexibly. This has led to the increase in the number of banks that shut branches and other outlets around midday.

"We've found that the Kiba branch, located in a residential area, had fewer visitors around noon," Bank of Nagoya President Ichiro Fujiwara said, explaining why the midday break was introduced at the branch.

The bank will consider reviewing the service hours at other outlets after examining the impact of the new system at the Kiba branch.

Among other regional lenders, Hyakugo Bank of Tsu, Mie Prefecture, central Japan, started a 90-minute lunchtime break at small outlets inside commercial facilities in October last year, in order to save labor costs.

Michinoku Bank of the northeastern Japan city of Aomori will increase the number of branches with such a break time to three from the current two in July this year.

Toho Bank, based in the northeastern city of Fukushima, will be the first regional lender to introduce a lunchtime break in the prefecture of Fukushima. Starting from July 2, nine branches will have a one-hour break from 11:30 a.m.

Gunma Bank, headquartered in the eastern city of Maebashi, Gunma Prefecture, is considering boosting the number of outlets with such a break time. The bank introduced the system at three branches in April last year.

"We've received no complaint. Automated teller machines can be used while the counters are shut," a Gunma Bank public relations official said.

Japanese regional banks are reviewing their operations as their profitability has deteriorated due to protracted superlow interest rates.

Measures to make service hours flexible, such as the introduction of lunchtime breaks, are likely to be implemented mainly at small outlets with relatively few corporate clients, industry sources said. Jiji Press