According to a report in the Kyodo News, S&P said its stellar ratings were "based on the strategic importance of IYBank to its financially strong and supportive parent group, negligible credit risk in its asset portfolio and its competitive ATM channels."
IYBank, which does not have traditional brick-and-mortar bank branches, launched ATM services on May 15. According to previously published reports, IYBank plans to carve out a niche by operating ATMs round-the-clock 365 days a year -- compared to the more limited hours at the ATMs of most traditional Japanese banks. IYBank also offers fee-free deposit and withdrawal services to its customers.
IYBank deployed its first 64 ATMs at supermarkets and stores operated by business partner Seven-Eleven Japan Co. Ltd., Japan's largest convenience store chain. IYBank owner Ito-Yokado Co. Ltd. last month announced plans to install IYBank ATMs at its affiliated Denny's Japan Co.'s restaurant outlets.
Ito-Yokado owns a 51 percent stake in IYBank, with Seven-Eleven owning the rest. IYBank's goal is to deploy more than 3,600 machines in its first year.
Under agreements IYBank has with four Japanese traditional financial institutions, Sanwa Bank, Asahi Bank, Shizuoka Bank and Chiba Bank, customers of those banks can access their accounts through IYBank ATMs. In return, IYBank receives interchange fees.
