Everyone’s Running Bank Errands Instead of Staying Home in Japan
Japanese banks are urging customers to think twice about visiting branches that remain crowded even during a state of emergency
(Bloomberg) -- Japanese banks are urging customers to think twice about visiting branches that remain crowded even during a state of emergency imposed to fight the coronavirus pandemic.
Lenders are struggling to cope with large numbers of customers who are using the downtime during the outbreak to run bank errands. It’s another example of people flouting social distancing advice in Japan, where the government’s emergency declaration lacks the teeth of lockdowns in other nations.
Many people who are working from home during the crisis are using the time to do overdue bank chores, Japanese Bankers Association Chairman Kanetsugu Mike said this week. Some are bringing in old commemorative coins or outdated banknotes for exchange after finding them during spring cleaning at home, he said.
“There are many cases of this, and a result, there is congestion at lobbies,” said Mike, who is chief executive officer at MUFG Bank Ltd., a unit of Japan’s biggest banking group. “In order for us to keep providing necessary services while protecting customers from infection, we would like to ask them to consider whether it is really urgent business when they visit banks.”
The Japanese Bankers Association has run a full-page newspaper advertisement asking people to use online services to avoid catching or spreading the virus. Branches are short-staffed because of split rotations, resulting in long waiting times at congested lobbies. Lenders including Mitsubishi UFJ Financial Group Inc. have disclosed several cases of infection among workers.
The issue underscores Japan’s continued reliance on -- and affection for -- costly physical branches even as lenders try to migrate customers to digital channels. Most people in Japan still carry passbooks and personal seals known as hanko for even simple transactions. Japan had 34 branches per 100,000 people in 2018, among the highest in developed nations, according to World Bank figures.
The government declared the emergency earlier this month with the goal of reducing people’s contact with others by 80%. The Financial Services Agency has urged banks to keep branches open during the period because they provide essential services.
Sumitomo Mitsui Banking Corp. has seen the number of visitors to branches in some residential areas jump 40% since February. Overall foot traffic has dropped about 15%, mostly due to declines in now-deserted office districts.
A worker at a Resona Bank Ltd. branch near Tokyo came up with an idea for social distancing at lobbies by putting “Resonya,” a cat-like mascot, on chairs to separate customers waiting for service.
Hideki Takamatsu, head of operations planning at Sumitomo Mitsui, said foot traffic is likely to increase in coming weeks, given that it’s tax payment season and the government is promising aid to households and small businesses.
©2020 Bloomberg L.P.