STRATEGIC PARTNERS
August 19, 2002
TOKYO -- The banking industry has plans to integrate all of Japan's ATM networks -- which are currently operated independently by groups of major commercial banks and other financial institutions -- into a single nationwide online system as early as January 2004, according to a report in the Daily Yomiuri.
Currently, major commercial banks with branches in major cities link their ATM networks to enable customers to deposit and withdraw cash at any branch of the banks in the group.
Likewise, regional banks, headquartered in prefectural capitals, and second-tier regional banks -- which used to be known as mutual banks -- have their own networks of ATMs and cash dispensers.
The five groups, including commercial banks, regional banks, second-tier banks, trust banks, long-term credit banks and the Shoko Chukin Bank (the central cooperative bank for commerce and industry), have agreed to team to develop a system that will make their respective online networks compatible with one another.
ATM systems are already linked between commercial banks and regional banks, but group-to-group online services are limited to the period from 8 a.m. to 9 p.m.
The industrywide system will also upgrade 24-hour ATM operations at convenience stores, allowing customers of a greater number of commercial, regional and second-tier regional banks to access retail banking services through such outlets.
The national federations of shinkin banks (credit associations), credit unions, labor credit associations and agricultural cooperatives are considering participating in the ongoing joint development project of the five bank groups, according to banking sources quoted in the Daily Yomiuri report.
