Major Japanese railway operator Kintetsu Group Holdings Co. on Wednesday signed a partnership agreement with MUFG Bank Ltd., as it looks to offer personal banking services.

Kintetsu is the first Japanese railway company to team up with a megabank to provide financial services, according to the company.

The firm operates primarily in the Kinki region of western Japan. It aims to attract new customers by diversifying its business operations, amid concerns over population decline along its railway lines.

Kintetsu plans to launch personal banking services in March 2027 after obtaining approval from the Financial Services Agency. It will use MUFG Bank's systems to manage core functions such as payment processing. The railway operator aims to have 200,000 accounts opened within the first five years of operation.

Using an app, customers will be able to make deposits, transfer funds and apply for mortgages. They will also have access to Kintetsu's Kips point reward program, which currently has about 1.7 million members. Depending on how much people use the financial services, they could receive special offers for Kintetsu's limited express trains and free tickets to the Abeno Harukas Observatory, among other benefits.

Kips members tend to skew older. Kintetsu hopes to attract younger users by providing app-based services. By combining this with the company's strengths -- such as railways and commercial facilities -- the company aims to increase Kips membership to 2 million.

Kintetsu also plans to leverage customer data obtained through the app. It will be used to help attract more customers to the railways, hotels and department stores the firm operates.

"We aim to aid the local economy along our railway lines and enhance their appeal by linking travel-related consumption with financial services," said Koji Kawamura, an executive officer of Kintetsu Group Holdings, at a press conference in Osaka.

"We intend to expand our customer base by increasing engagement with daily (Kintetsu) railway users," said Takahiro Higuchi, head of MUFG Bank's Osaka Corporate Banking Division No. 2.

Railway companies, which have deep roots in their communities and a large base of commuters along their lines, make a good fit for financial services. For banks, partnering with railway companies gives them the chance to lock in customers and expand services that are integrated into users' daily lives.

More and more Japanese railway operators are offering banking services. A corporate group led by Keio Corp. began offering financial services in 2023 after partnering with SBI Sumishin Net Bank Ltd. In 2024, East Japan Railway Co. launched financial services after teaming up with Rakuten Bank Ltd. In May this year, West Japan Railway Co. signed a partnership agreement with Kansai Mirai Bank Ltd., a subsidiary of Resona Holdings Inc., and it aims to launch services in fiscal 2027, which ends March 2028. Hankyu Hanshin Holdings Inc. plans to join the market with the help of Senshu Ikeda Bank Ltd. as early as 2027.

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July 02, 2026 07:18 ET (11:18 GMT)

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