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Two banks to offer 24/7 ATM access in link with Japan Post

March 16, 2003

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TOKYO -- Customers of Japan Post will be able to do their banking at convenience stores under a tie-up between the public postal corporation, Sumitomo Mitsui Banking Corp. and IY Bank, according to a report in the Japan Times.

Customers of Japan Post, which will begin operating in April, will be able to withdraw cash from 1,000 SMBC ATMs beginning in July, and 5,000 IY Bank ATMs beginning in May, according to the report.

IY Bank operates about 5,000 ATMs at Seven-Eleven Japan Co. stores, and SMBC has ATMs installed at more than 1,000 am/pm Japan Co. stores. Customers of both banks, which mainly operate in metropolitan areas, will be able to use ATMs at 24,000 post office locations nationwide.

It will cost 210 yen (about $1.77 U.S.) per transaction for postal savings customers to withdraw money through these ATMs, the report said.

Japan Post's planned partnerships with SMBC, a core bank of Sumitomo Mitsui Financial Group Inc., and IY Bank would mark its first full-scale business tie-up with private-sector financial institutions.

Although postal savings customers can already withdraw money from bank ATMs, they have never had widespread access to around-the-clock services. Other than a few locations featuring 24-hour trial services, post offices in Japan offer no late-night or early morning ATM access.

Japan Post apparently decided to tie up with the banks to reduce costs of offering ATM access.

IYBank has agreements with four traditional banks -- Sanwa Bank, Asahi Bank, Shizuoka Bank and Chiba Bank -- that allow customers of those banks to access their accounts through IYBank ATMs. In return, IYBank receives interchange fees.

Japan Post will take over mail delivery, postal savings and "kampo" life insurance on April 1, according to the report.