Japan's MUFG to shutter 40% of local branches by 2023

It also expects 6,000 job losses by that year.

Japan’s Mitsubishi UFJ Financial Group (MUFG) is closing up to 40% of its domestic branches by FY2023 as a cost-cutting measure in response to the pandemic, reports Reuters.

The bank had initially planned to slash its local branches by 35%, but was forced to widen the number of closures to keep a tab on their costs.

It also expects 6,000 job losses through attrition by FY2023, highlighting its struggle to maintain profits amidst ultra-low interest rates.

MUFG, which owns 24% of Morgan Stanley, had pledged in 2018 to review the number of branches as the lender recognised that customers were drastically shifting to internet banking.

Whilst almost 45% of 93 million transfer transactions were made through its smartphone app in FY2019, only 2% were conducted at retail branches, MUFG said in a statement.

Here's more from Reuters.