STRATEGIC PARTNERS
February 24, 2002
TOKYO -- Asahi Bank and Tokai Bank plan to develop a new ATM management system, jointly with Fujitsu Ltd. and Sogo Keibi Hosho Co., a major security firm. The four companies will jointly establish a company by the end of February to handle ATM management, including the loading of cash and checking of balances, according to the Nihon Keizai Shimbun.
They aim to cut ATM operating costs by 30%, equivalent to savings of 1 billion yen a year for a major city bank. Longer ATM opening hours have pushed up operating costs.
Daiwa Bank, Chiba Bank, Joyo Bank and several regional banks are expected to join up, possibly in the summer when the new company increases its capital.
Sogo Keibi Hosho will take a 70% stake in JFL, the new company, while Fujitsu will put up 20% and the two banks 5% each.
JFL will begin business in Saitama Prefecture in April, then expand into the Tokyo area, where the two banks have about 3,000 ATMs, in October. Further expansions are planned for outside the Tokyo area.
It is the first time Japanese financial institutions have jointly managed ATMs.
