Japanese Financial Institutions Expanding Their Reach with New Branches
MUFG Bank Opens New Retail-Focused Branch in Tokyo
MUFG Bank, one of Japan's largest financial institutions, has taken a significant step in its evolution by opening a new retail-only branch at the NEWoMan Takanawa shopping complex in Tokyo's Minato Ward. This marks the bank's first new outlet in about 20 years.
The new branch, designed specifically for retail customers, is part of a broader trend among major Japanese banks to open new types of outlets, focusing on individual client investment consultations and account setup. The move is a response to the growing demand for asset management services, and MUFG Bank plans to convert approximately 80 to 100 of its branches nationwide into this new format.
The new MUFG Bank branch boasts a simple yet modern layout, featuring a large event space, a tablet terminal for account openings, a consultation booth, and an automated teller machine. In line with the digital-first strategy, cash-related services are not handled at this branch.
The new outlets, including the one by MUFG Bank, are intended to leverage digital technology in banking services. This shift is aimed at improving customer experience, increasing direct contact with customers due to rising interest rates and growing demand for asset management services, and providing specialized services such as investment consultations and account setup.
Events are held at the branch to attract customers and make visiting easy. The branch is open for extended hours, including weekday evenings and weekends, to cater to customers' busy schedules.
Notably, this trend is not limited to MUFG Bank. Japan Post Bank and SBI Holdings are also planning to transform over 80 to 100 of their approximately 320 branches into these new types of branches focused on providing personalized customer service, investment advice, and account setup. Japan Post Bank is preparing for innovative digital initiatives, while SBI Holdings is working on new financial platforms related to tokenized assets.
This shift in strategy by Japanese banks represents a reversal of their previous moves to scale down branch networks. The opening of these new outlets is a testament to the growing importance of direct customer interaction and the role of digital technology in shaping the future of banking services.
