TOKYO – IY Bank, the Japanese Internet bank that has installed 2,000 ATMs in convenience stores, has asked three banks to extend their commission-free period for ATM use.
The bank's strategy, according to a Dow Jones Newswire report, is to further encourage customers to use the IY Bank ATMs. "urn:schemas-microsoft-com:office:office" />
The report said the ATMs, located in Tokyo and Osaka, are being used just an average of 20 times daily, far below the suggested break-even level of 70. The new bank blames its poor name recognition for the shortfall, but said it is essential to keep daytime withdrawals free to customers to encourage more use.
One of the banks that received the IY Bank request, Sanwa Bank, has agree to extend the commission-free period through May, while the others, Asahi Bank and Shizuoka Bank, have not yet made a decision. IY Bank is expected to complete agreements soon with Sumitomo Mitsui Banking, Shinsei Bank, Bank of Yokohama and Chiba Bank, and will request those institutions implement the same commission-free service.
