TOKYO -- Ito-Yokado Co Ltd, one of Japan's biggest retailers, unveiled plans to begin limited banking services soon, according to a Reuters report. The new IYBank will start taking deposits on May 7 and begin ATM services on May 15.
It is joining a growing number of non-financial Japanese firms such as electronics giant Sony Corp hat are planning to enter traditional banking.
"New firms are taking the place of old in other parts of the economy. Now we are seeing this happen in the banking sector,' IYBank president Takashi Anzai said at a news conference.
IYBank will specialize in retail services such as deposit-taking and bill-paying but does not own nation-wide branches.
It will begin with 1,650 ATMs at Ito-Yokado's supermarkets and stores operated by Japan's largest convenience store chain, Seven-Eleven Japan Co Ltd, in major metropolitan areas, and aims to expand that to 3,650 ATMs by next March.
According to the Reuters report, IYBank hopes to carve out a niche by operating ATMs round-the-clock 365 days a year -- compared to more limited hours at the ATMs of many traditional Japanese banks. IYBank also will offer fee-free deposit and withdrawal services.
IYBank is working to establish links to the ATM networks of several major Japanese money centers and regional banks, including Sanwa Bank, Asahi Bank, Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corp
Sanwa Bank customers will be able to do business at IY Bank ATMs when service begins on May 15.
The new bank will initially be capitalised at 20.25 billion yen ($164.1 million), with Ito-Yokado owning a 51 percent stake and Seven-Eleven owning the remainder, Eeuters reported.
Several Japanese companies outside the financial sector are plotting moves into the potentially lucrative banking business, with Sony due to start its online banking unit in June.
