MUFG Emut Bank to operate without cash cards

Mitsubishi UFJ Financial Group plans not to issue cash cards for customers of MUFG Emut Bank, the Japanese banking group’s digital bank scheduled to open between January and March next year, it was learned Wednesday.

Customers will be able to withdraw cash using smartphones instead. Multiple authentication methods will be introduced to enhance security beyond conventional card-and-PIN authentication and help prevent unauthorized use.

It will be the first bank affiliated with a major Japanese financial group not to issue cash cards.

Quick response, or QR, codes will be used for deposits and withdrawals via smartphones. The service is expected to be launched at about 29,000 automated teller machines operated by Seven Bank across the country.

By eliminating card issuance costs, the bank will aim to redirect resources toward improving services, including deposit interest rates. Interest is expected to be credited daily.

Meanwhile, cash cards will continue to be available to customers of MUFG Bank, the core unit of Mitsubishi UFJ Financial Group.