STRATEGIC PARTNERS
August 1, 2002
TOKYO -- Sumitomo Life Insurance Co. has tied up with Shinkin Central Bank, an industry body grouping 343 "shinkin" small savings banks, to enable its policyholders to take out loans from ATMs at most of the member shinkin banks, according to a report in the Japan Times.
The arrangement, to begin in October, is the first ATM hookup deal between Shinkin Central Bank and an insurance company. More than 20,000 ATMs are expected to be included in the deal.
More than 300 of the industry group's 343 member banks are expected to allow Sumitomo Life policyholders to take out ATM loans using the insurer's membership cards. Policyholders will be allowed to borrow part of their paid-in premiums up to a certain ceiling through the ATMs.
Of the insurer's policyholders, 3.17 million have been issued such membership cards.
Sumitomo Life already participates in similar ATM hookup arrangements with major city commercial banks with urban branch networks, as well as with post offices nationwide, some regional banks and IYBank, which runs a network of ATMs at convenience stores.
Shinkin banks see the tieup as a way to expand their customer base.
The insurer's cardholders annually engage in 1.4 million transactions for the loan service, worth 147.1 billion yen annually.
