Japan's KDDI, MUFG to launch online bank
TOKYO, June 17 (Reuters) - The Bank of Tokyo-Mitsubishi UFJ and phone company KDDI Corp (9433.T) said on Tuesday they have received a license to set up an online bank that would target busy people with 24-hour services.
Dubbed Jibun Bank, or "me bank", the 50-50 joint venture between the unit of Japan's largest bank, Mitsubishi UFJ Financial Group Inc (8306.T), and the No.2 phone company raises the ante for retail banking in Japan, where services tend to lag those of Western banks.
Despite Japan's reputation for cutting-edge technology, most banks do not offer 24-hour ATM services, or take cash cards from overseas lenders.
Jibun Bank account holders will be able to make online payments through their mobile phones or PCs when the bank opens in mid-July, the two firms said in a release.
The bank plans to later provide foreign-currency-based accounts, loans, credit card services and insurance.
The new bank is targeting 2.4 million accounts and deposits totaling 1 trillion yen ($9.27 billion) in the year starting April 2010. It aims to raise that to 3.4 million accounts and 1.5 trillion yen in two years.
Users at rival mobile phone carriers NTT DoCoMo Inc (9437.T) and Softbank Corp (9984.T) would also be able to open accounts at the bank.
Shares of KDDI closed up 0.9 percent at 690,000 yen, while MUFG shares were down 0.2 percent at 1,080 yen. The benchmark Nikkei average .N225 was flat. ($1=107.86 yen)
(Reporting by Mayumi Negishi and David Dolan; Editing by Brent Kininmont)
