Major banks are planning to lower fees for certain fund transfers between individuals, it has been learned.
As bank transfer fees at domestic institutions have been perceived as high, the government has asked the banking sector to lower them.
MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank and Resona Bank will jointly announce the change by the end of this month, according to sources.
Currently, for example, if an individual customer uses a major bank's online banking to transfer fund to an account with another bank, the fee is 220 yen for an amount under 30,000, yen and 440 yen for 30,000 yen or above.
For a new remittance system, fees are likely to be set at low prices for relatively small transfers involving several tens of thousands of yen or less. Specific fee levels will be discussed later, the sources said.
Regional banks and other financial entities are expected to participate in any new remittance system, so this move to cut fees could spread.
At present, funds can be transferred for free through cashless payment service providers, such as PayPay and Line Pay, with the use of smartphones. As such cashless payment services have spread, the banks are apparently aiming to hold on to customers by offering more convenient services at lower prices.
Most domestic financial institutions, from banks to credit unions, are connected to the nationwide data telecommunications system called the Zengin system to process transfers. They pay a fee of 117 yen for every remittance under 30,000 yen and 162 yen for a transaction of 30,000 yen or above. A report released in April by the Japan Fair Trade Commission pointed out that the interbank remittance commissions have remained unchanged for more than 40 years.
During a meeting on future investment in June, Prime Minister Shinzo Abe instructed Finance Minister Taro Aso, who is also state minister for financial services, to review remittance fees, saying, "High fees have hampered the spread of cashless payments."
In light of this, the banking sector has launched a review with the Financial Services Agency and other parties on the interbank fees paid under the Zengin system. Consideration will be also made for separately building a new simple remittance system using a smartphone app to lower fees for small transactions, according to the sources.
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