Japanese Bank to Stop Allowing ATM Cards, PCs For Account Access
Mitsubishi UFJ Financial Group plans to launch Emut Bank in early 2027 as the first digital bank affiliated with a major Japanese financial institution to eliminate ATM cards, “instead having customers confirm identities using the bank’s smartphone app for additional security amid a rising tide of cyberattacks,” reports Nikkei Asia Review. The smartphone app will also be the only way to manage deposits, with no PC-based banking. From the report: Security has become a greater concern recently. As artificial intelligence advances, Japan has seen a surge in cyberattacks targeting companies, as well as a rise in phishing attacks aimed at stealing personal information, often targeting bank accounts. The technology being used by Emut was developed by Seven Bank, the consumer finance unit of Seven & i Holdings, operator of 7-Eleven convenience stores. Emut customers will be able to withdraw money from Seven Bank’s roughly 28,000 ATMs. The network is expected to gradually expand to cover the 16,000 or so ATMs at FamilyMart convenience stores. Although MUFG Bank ATMs will not be accessible, MUFG will consider changing this in the future.
Scrapping cash cards represents a shift in what has for decades been consumers’ main method of withdrawing money. The former Sumitomo Bank — a predecessor of Sumitomo Mitsui Banking Corp. — is believed to have been Japan’s first bank to implement cash cards, in 1969. The step away from cash cards by MUFG, Japan’s largest financial institution, is likely to spur other banks to follow suit. […] Eschewing cash cards will reduce Emut’s costs, which will let it offer interest rates on deposits that are expected to be higher than MUFG Bank’s usual 0.5%, depending on the terms. Interest can be paid out daily, rather than twice a year — a first for a Japanese bank.
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