TOKYO — Japan’s three megabanks will lower internet banking fees as soon as in October, as competition with fintech startups heats up, Nikkei has learned.
The country’s major banks plan to cut their internet banking fees making them cheaper than ATMs and storefronts to encourage individuals and businesses to transfer money online. In fiscal 2022, the banks also plan to introduce a smartphone app that will allow users to send money at a discount.
Banks are facing a torrent of criticism over high fees, while fintech upstarts offering cheaper services are gaining market share.
Aside from the three megabanks — MUFG Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank — Resona Bank will also offer lower internet banking fees starting in October or later. Regional banks such as Bank of Yokohama are considering similar moves.
At present, when an individual transfers less than 30,000 yen ($271) in cash to another bank account through internet banking, a service charge of about 220 yen applies. The fee rises to between 300 and 400 yen for transfers over 30,000 yen. Several banks are considering lowering the fee by 50 yen for transfers of less than 30,000 yen and around 100 yen for transfers of 30,000 yen or more.
Last year, approximately 1.56 billion bank transfers took place in Japan worth over 2,700 trillion yen in total. Both figures have increased by about 20% over the past decade, as more companies transfer money directly to their business partners’ accounts, and individuals more frequently use internet banking to pay rent and other monthly expenses.
The sudden industry moves follow the first cuts in interbank transfer fees in 40 years for transactions conducted through the Zengin System (Data Telecommunications System of All Banks). With the reduction in bank-to-bank transfer fees, major banks have decided to lower their own service charges to customers.
On Wednesday, Fukuoka Financial Group announced that it would review its transfer fees for the first time, following the reduction in interbank transfer fees.
