Mitsubishi UFJ Financial (TYO:8306) is contemplating offering comparatively higher interest rates on deposits for a digital bank slated to launch this fiscal year, Nikkei Asia reported on Wednesday, citing CEO Masakazu Osawa.

In a recent interview, Osawa explained that because a digital platform can swiftly adjust fees and rates in response to market shifts, MUFG aims to compete on both speed and cost, the news agency said.

He noted that offering higher rates than its traditional brick-and-mortar bank is "theoretically possible," including the option of customizing rates on a customer-by-customer basis, the publication said.

Osawa, who took over as head of MUFG Bank on April 1 after Junichi Hanzawa moved up to lead parent company Mitsubishi UFJ Financial Group, emphasized that building a low-cost, speedy service will be a key strategy, the report said.

Currently, a standard MUFG Bank physical account earns just 0.3% annually, while rival Aozora Bank (TYO:8304) offers up to 0.75% on online-only accounts, it added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)