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Summary of article:
Mitsubishi UFJ’s new online bank is expected to open in the first quarter of next year. It will cancel ATM cards and instead use mobile apps and QR codes to withdraw cash to strengthen information security and prevent cyber attacks and leaks of personal information.
Japan As companies are being attacked one after another, a new online bank opening next year will not issue ATM cards and will instead issue ATM cards through the bank’s mobile phone.Application Verifying customer identity to improve information security protection.
Japanese media reported that Mitsubishi UFJ Emut Bank is expected to launch services in the first quarter of next year and will be the first bank in Japan to issue ATM cards affiliated with a major financial institution.
Customers will use the mobile app to scan the QR code to withdraw cash from the ATM. This means users will need to be able to unlock their phone and log into the app, and will also need to know the account verification code before withdrawing money, with several layers of security compared to ATM cards, which only require a password.
The app will also be the only way for customers to manage their deposits. Users will not be able to log in to the bank’s website from computers or other devices, which also adds an additional line of protection against data leakage.
Information security has recently become a major issue in Japan. With the advancement of artificial intelligence (AI), Japanese companies have increasingly become targets of cyberattacks, and phishing scams that steal personal information have also increased.
Eliminating cash cards would fundamentally change the way consumers have withdrawn money for decades. It is generally believed that the first bank to adopt ATM cards in Japan was Sumitomo Bank (now Sumitomo Mitsui Banking Corporation) in 1969.
Mitsubishi UFJ is the largest financial institution in Japan. This initiative of its online banking unit may inspire other peers to follow suit.
Summary FAQ
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The main objective is to improve information security protection and reduce the risk of ATM card theft or data leakage. In recent years, Japanese companies have been frequently hit by cyber attacks and phishing scams, causing banks to adopt more stringent mobile phone verification methods.
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Customers must first unlock their mobile phone and log in to the bank app, then scan the QR code at the cash machine and enter the account verification code to complete the withdrawal. This process has many more lines of security than a traditional ATM card.
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Since Mitsubishi UFJ is one of the largest financial institutions in Japan, its online bank is the first to cancel ATM cards, which could become a model for the industry and inspire other financial peers to follow suit and adopt similar practices.
