TOKYO -- IYBank, a settlement-only bank set up last year by Ito-Yokado Co., is striving to achieve its goal of making a profit by its third year, bank President Takashi Anzai said in an interview with Jiji Press.
Anzai said the bank, which launched in May 2001, will link up with more financial institutions in ATM services in its second year. The average daily number of ATM users had risen to 34 per machine by March, though it is still below the break-even level of 70 users, Anzai said.
IYBank suffered a net loss of 5.6 billion yen ($42.1 million) in its first year when it failed to attain its daily target for the use of its ATMs installed at 7-Eleven outlets.
IYBank has agreements with Sumitomo Mitsui Banking Corp, UFJ Bank, Asahi Bank, Sanwa Bank, Shizuoka Bank and Chiba Bank allowing customers of these banks to use IYBank's ATMs. In return, IYBank receives interchange fees.
IYBank plans to start providing loan services for individuals by the end of this year, Anzai said.
It will be hard for IYBank to turn a profit in the second year, Anzai said, but it is possible for the bank to realize its goal of profitability in the third year.
