Yomiuri Shimbun Staff Writer
Mitsubishi UFJ Financial Group Inc. (MUFG) aims to "stem the outflow of deposits" with the planned launch of a digital bank within this fiscal year, said Tadashi Yamamoto, head of the company's Retail & Digital Business Group, during an interview with The Yomiuri Shimbun.
Yamamoto said the outflow is an issue especially prominent among younger customers, adding that the digital bank is expected to offer interest rates "among the highest in the industry."
The following is excerpted from the interview.
The Yomiuri Shimbun: How has MUFG's M-tto retail financial service been performing?
Tadashi Yamamoto: We're seeing positive results. The number of bank accounts (in fiscal 2025) was 50% more than in the previous fiscal year. The number of credit cards issued doubled year-on-year, putting it at about three times the level of two fiscal years prior. The number of accounts opened through Mitsubishi UFJ eSmart Securities Co. was 7.7 times that of fiscal 2024.
Going forward, we plan to roll out various services, including a digital bank. We're already seeing significant early results.
Yomiuri: What are M-tto's strengths?
Yamamoto: We aim to provide services that span generations -- not just payments and reward points, but everything from wealth building to estate planning. If we try to compete solely on payments and reward points, it's likely to become a grueling battle over reward rates and the like.
The service also enables our banking segment to accumulate profits earned through such areas as deposits and lending over the long term, and to expand profit opportunities to include wealth building and estate planning. Our goal is to build broad, long-lasting relationships with customers. Ultimately, we aim to achieve double-digit ROE (return on equity).
Yomiuri: What is your goal in launching a digital bank during fiscal 2026?
Yamamoto: We want to stem the outflow of deposits, which is occurring primarily among the younger generations. Excluding Japan Post Bank Co., MUFG holds an overwhelming lead (over other Japanese banks) in terms of overall deposit balances, with about 90 trillion yen in retail deposits. However, there is a trend, particularly among younger people, of shifting some of these deposits to online banks. We cannot halt this trend without our own digital bank.
Yomiuri: How will you differentiate it from online banks?
Yamamoto: Three factors are key: the benefits customers receive, such as interest rates; user-friendliness; and innovativeness. We aim to offer interest rates that are among the highest in the industry. We'll flexibly adjust rates based on customer attributes and usage patterns, such as raising rates for younger customers or those who use specific services.
Yomiuri: How will you differentiate (the digital bank's) services from existing banking services?
Yamamoto: We're not concerned about cannibalizing (the customer base of) our existing banking services. We want customers to use each in accordance with their needs. We aim to provide the convenience of being able to transfer funds between (physical and digital) banks 24 hours a day, 365 days a year, free of charge.
Yomiuri: What is the goal of the planned merger of Mitsubishi UFJ eSmart Securities Co. and WealthNavi Inc.? Both are MUFG group companies.
Yamamoto: We aim to give our online securities business a clear competitive edge. By integrating the two companies, we will highlight our strength as a "robo-adviser" that supports asset management using technologies such as artificial intelligence, making it easier to attract customers.
Yomiuri: What are your plans after the merger?
Yamamoto: With their consent, we want to enable customers to purchase securities products directly from their digital bank deposits. Ultimately, we aim to provide both banking and asset-building services -- two key financial services -- within a single app.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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