The Bank of Tokyo-Mitsubishi UFJ (MUFG Bank) plans to get rid of in-person service counters, including those for opening bank accounts, at most of its branches nationwide as part of efforts to simplify its operations.
MUFG Bank is Japan’s largest bank and one of the world’s largest, with offices throughout Japan and in 40 other countries.
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By the end of fiscal 2023, MUFG plans to specialise in handling various procedures via teleconference terminals and providing consultations on asset management.
The number of customers who visit branches has been on the decline due to the novel coronavirus crisis, prompting the bank’s decision to accelerate reforms to cut costs.
MUFG has decided to close 200 out of the 515 conventional branches in existence as of the end of fiscal 2017. These locations will be closed by the end of fiscal 2023.
Conventional branches feature in-person service counters, with employees providing services to individual clients and conducting sales activities aimed at corporate clients.
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By GlobalDataCost considerations
However, it has been difficult to cover the costs of maintaining such services. Therefore, MUFG will also simplify operations at 160 of the 315 remaining branches.
At some of the simplified branches, teleconference terminals will be installed instead of in-person service counters to handle such procedures as opening accounts and registering a change of address.
MUFG will also increase the number of branches that provide only asset management consultations to individual clients. Such new branches are already in operation at five locations on an experimental basis.
There is also expected to be a type of branch that combines services via teleconference terminals and asset management consultations.
Service hours for asset management assistance will be extended to 6 p.m., from the current 3 p.m., in consideration for clients’ convenience.
Some conventional branches will be retained
A total of 155 branches will remain as conventional locations, serving as bases for operations over a wide area.
The number of employees at simplified branches will decrease significantly, so their sales activities aimed at corporate clients will be integrated into the remaining conventional branches.
Sometime in the future, heads of conventional branches will concurrently serve as top managers of the simplified branches, in principle.
The number of people who visited MUFG branches halved in the past five years, while the number who used the bank’s services via smartphone increased about 2.5-fold.
MUFG expects this trend to continue, even after the novel coronavirus is brought under control
By making simplified branches the norm, the bank aims to encourage clients to conduct administrative procedures, money transfers and other actions via the internet.
With prolonged low interest rates continuing to batter their financial situation, an increasing number of other banks have also begun reforming their branch operations.
Sumitomo Mitsui Banking Corp. plans to convert 300 branches, about 70% of its total, to specialise in asset management consultation services for individual clients over the three-year period through the end of fiscal 2022.
Mizuho Bank has set a goal of reducing group company branches by about 130, mainly in urban areas, by fiscal 2024.
