TOKYO — Round-the-clock ATM service could become more commonplace in Japan in the near future, according to a report in Japan Times.
Some major banks have begun operating their ATMs on a 24-hour basis, while others plan to tie up with convenience stores to provide the service.
In September, UFJ Bank became the first major Japanese bank to offer 24-hour banking services when it made 308 of its 2,000 ATMs available for withdrawals, fund transfers, balance inquiries and changes of personal identification numbers around the clock.
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The bank offers the services free of charge to customers who maintain an average monthly account balance of at least 100,000 yen (U.S. $934) in one of its All One accounts.
The service has been well-received by customers. An average 40 people use the ATMs between 9 p.m. and 8 a.m. each day, a UFJ Bank official told Japan Times.
Citibank, which has offered 24-hour ATMs in Japan since 1993, is set to further expand the service by tying up with post offices.
However, some Japanese banks have reduced the numbers of ATMs operating around the clock due realignments within the banking industry. Bank of Tokyo-Mitsubishi, for example, started 24-hour ATM operations at 11 of its branch offices in 1998 but has scaled down the service since then.
Other major banks offer 24-hour ATM service in big urban areas but show no interest in expanding the service to other areas, partly due to costs, according to Japan Times.
They believe that the lack of their own ATMs can be compensated for by hooking up with convenience stores, which have installed some 16,000 machines. IY Bank, an affiliate of Seven-Eleven Japan Co., has ATMs at nearly 7,000 Seven-Eleven stores nationwide. It intends to increase the number of ATMs, including those installed at Ito-Yokado supermarkets, to 7,900 by the end of March.
In view of the cost involved, more banks will opt to form tieups with convenience stores instead of using their own ATMs for 24-hour banking services, according to the Financial Research Institute at Nomura Securities Co.
