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Japan banks MUFG, SMBC closing 700 ATMs as part of share program

July 8, 2019

Japanese banking giants MUFG Bank Ltd. and Sumitomo Mitsui Banking Corp. plan to make ATMs outside their branches available to each other's customers.

Starting Sept. 22, the banks will let each other's clients withdraw cash from their ATMs at no charge on weekdays, during the day, according to a report in Japan Times. 

The arrangement is the first of its kind between two of Japan's megabanks, according to the report, although Mizuho Bank launched a similar arrangement with Aeon Bank — Japan’s largest shopping mall chain of ATMs — in 2013, according to Nikkei.  

A total of 2,818 ATMs will be covered by the service, mainly those near railway stations and inside commercial facilities across Japan. 

As part of the plan, MUFG and Sumitomo Mitsui will close 600 to 700 ATMs located in close proximity to each other. The move is expected to reduce costs of several billion yen (tens of millions of dollars) annually. 

In its Global ATM Market and Forecasts to 2024 report, RBR found the number of ATMs in Japan shrank for the first time since 2009, as banks attempted to improve operational efficiency through increased ATM sharing. Japan is one of the five top markets for ATMs.