Japanese lenders MUFG Bank and Sumitomo Mitsui Banking (SMBC) have reached an agreement to start sharing their ATM network.
The two lenders will make their ATMs available to each other’s customers starting this September, The Japan Times has reported.
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The move will enable customers to withdraw cash from MUFG Bank or SMBC ATMs for free during the daytime on weekdays.
The ATM transaction via the other bank’s ATMs will be charged as per norm set by each lender.
The collaboration comes at a time when the number of ATM users in Japan is failing with increasing online transactions and digital banking.
Besides improving customer convenience, the ATM sharing is expected to reduce teller machine maintenance costs for the lenders.
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By GlobalDataThe two banks have also agreed to rationalise their ATM network closing the teller outlets located close to each other.
A total of 2,818 ATMs will be under this service, most of which are located in the greater Tokyo area, the Chukyo and Kansai regions.
The two banks also urged other domestic banks to join the initiative. Mizuho Bank is mulling to join the partnership, the report added.
Last month, MUFG agreed to a $33m settlement with the New York State Department of Financial Services (DFS).
The settlement resolves a lawsuit filed in 2017 by the bank against the New York regulator. The bank approached the court after DFS sought authority over MUFG even after the bank converted its New York state-licensed branch to a federally-licensed branch.
