THE JAPAN NEWS

 

TOKYO (Jiji Press) — Major Japanese banks are seeking next-generation branches at a time when the number of customers visiting outlets for settlement services is declining on the back of the growing popularity of internet banking services.

Specifically, they are trying to strengthen asset management-related consultation services. With attempts to make active use of information technologies to boost operational efficiency also spreading, banking outlets in Japan may change dramatically in the future, industry watchers say.

Mizuho Bank renovated its Kichijoji branch in Musashino, Tokyo, in July. It now has securities, trust and insurance service consulting counters on the same floor as its banking service counters.

Concierges are also installed at the branch as part of efforts to understand customer needs properly.

“We’ll consider introducing these measures at other outlets as well after examining effects on earnings and the number securities accounts” at the Kichijoji branch, Eishi Shimizu, an executive officer of Mizuho Bank, said.

In April, Sumitomo Mitsui Banking Corp. launched its new Ginza branch in Tokyo’s Chuo Ward, which it views as a model of a next-generation outlet.

The branch offers paperless cash withdrawal and other services through dedicated devices while having a larger space for asset management consultations than other branches of the bank. The bank adopted the paperless system for its Aoyama branch in Tokyo’s Minato Ward in July and plans to introduce it at other branches gradually.

Bank of Tokyo-Mitsubishi UFJ plans to install new automated teller machines that enable customers to pay utility bills and taxes easily at more than 100 branches by the end of March 2018.

By reducing work at counters, the bank hopes to prepare to strengthen its consulting services in the future.

Japanese banks are expected to accelerate efforts to reform their branches as they face the challenges of reducing costs and increasing commission revenue amid decreasing profitability from loan operations due to low domestic interest rates, industry sources said.