Japan is known for its advancement in technology as well as its huge banking sector.
The banks in Japan function the same way other banks across other parts of the world function i.e. providing standard financial services.
However, with the way technology has skyrocketed in Japan, it’s safe to say that this country is the lead when it comes to providing online banking services.
Therefore, in this guide, we shall look at the banking system in Japan as well as the top 10 banks in Japan.
Let’s Begin!
Overview of Top Banks In Japan
As stated earlier, Japan has one of the largest banking systems in the world and they function the same way other banking sectors operate.
Now that we are aware of how stable and efficient the banking system is in Japan with a mix of modern technology, here’s an overview of what the banking system in Japan looks like.
- Influential banking sector
There are lots of leading banks that can be found in Japan. These banks are called Megabanks. These banks also have a strong influential presence and they are also actively involved in the global financial market.
That is to say, they are involved in international trade, investment, and other financial activity.
In addition to that, there are a lot of services rendered by these banks and they include; managing assets, investment banking, retail banking, and corporate banking.
- Local and Regional Banks
As has been noted, megabanks play a huge role in the financial sector in Japan. Nevertheless, Japan also has various local and regional banks that help certain communities and regions in the country.
The essence of this bank is to offer different kinds of financial services to both local businesses and the residents.
- Cooperative Financial Institutions
Japan also has a network of cooperative financial institutions, such as Shinkin banks and agricultural cooperatives. These institutions serve the needs of local communities and specific industries.
- Innovation and Technology
The banks in Japan are known for their commitment to innovation and technology. They offer modern online and mobile banking services, and the use of technology in the financial sector is highly advanced.
Fintech solutions and digital banking have gained prominence.
- Cash-Centric Culture
Despite the fact that lots of people make use of physical cash to purchase things in their daily lives, digital payment and credit cards can now be used in Japan.
As a matter of fact, it’s easier and faster to pay with credit cards.
- International Presence
There are some banks in Japan that don’t just operate in Japan, they also carry out different kinds of business with other countries. So, they play a vital role in international finance and trade.
- Aging Population
Japan’s aging population is impacting the banking sector. Banks are adapting to serve the needs of an older demographic, including retirement planning and wealth management.
List of Top 10 Banks in Japan
Here is a list of the top 10 Banks in Japan. Take note that not all of the banks listed here are megabanks. Some of them are cooperative banks while a few of them are regional banks.
Let’s move on!
Mitsubishi UFJ Financial Group
This is one of the Megabanks in Japan and it was founded in 1880. This bank is the largest in Japan and it’s also one of the largest banks in the world. In addition to this, they have branches scattered in Japan and other countries.
Just like any other megabank in Japan, Mitsubishi UFJ Financial Group has a strong presence in the banking sector. This bank provides different kinds of financial services.
It’s indeed a global giant that has a strong reputation for stability and innovation.
Japan Post Bank
Japan Post Bank is one of the biggest banks and they provide different kinds of banking services as well as product services to both retail and business clients in Japan and also overseas.
Furthermore, they are a division of Japan Post Holdings and was founded in October 2007.
The Bank’s most important services include those related to deposits, loans, investments in securities, government bonds, etc.
Japan Post Bank is kind of like your simple neighborhood bank. They mostly help people save money and do other basic banking services. Nevertheless, they are still reliable as they are backed up by the Japanese government.
Mizuho Financial Group
Mizuho Financial Group is like a big financial umbrella. They are one of the top banks in Japan and were founded in 2003. In this bank, they provide lots of services. Some of these services may include; managing huge investments as well as regular banking services.
What’s more?
Mizuho Financial Group are not just operating in Japan alone, they carry out other financial activities with other countries of the world. So if you have any international money-related matters or you even need any kind of financial assistance, this banking group got you covered.
Sumitomo Mitsui Financial Group
SMFG is one of the top banks in Japan. They started in 2001 when two banks joined up. They have a capital stock of 2338.7 billion yen.
They do all sorts of money things, like helping regular people and businesses, and they even work with people from other countries. They have quite a few places where they work, like 18 branches and 22 smaller offices in different areas. So, they’re a big deal in the world of money!
Sumitomo Mitsui Financial Group (SMFG) is one of the big and important banks in Japan. It’s in the same league as other major banks.
SMFG does all kinds of money stuff, like helping regular folks, and businesses, and even handling big investments.
Norinchukin Bank
This is a cooperative bank in Japan that started in 1923. The main purpose of this bank is to assist the agricultural, fishery as well and forestry industries in Japan.
Norinchukin Bank, also known as the Japan Agricultural Cooperatives (JA) Bank, is a cooperative bank. It is owned and operated by the agricultural cooperatives in Japan, which are known as “JA” or Japan Agricultural Cooperatives.
The bank primarily serves the financial needs of these agricultural cooperatives and their members, including farmers and agricultural businesses.
Cooperative banks like Norinchukin Bank are often structured to support the specific needs and interests of their cooperative members.
They provide various financial services tailored to the agricultural and rural communities they serve. These cooperative banks play a significant role in agricultural finance and cooperative development within their respective regions.
Resona Holdings
The bank was founded in 1918 and has a capital of 50.4 billion yen. This bank also has 834 branches scattered throughout Japan. The Bank provides various banking services such as; trust banking, credit guarantee, a collection of bills and receivables, etc. services. It is one of the biggest banking groups you can find in Japan.
Resona Holdings is not a regional bank but rather a financial holding company that oversees a group of financial institutions, including Resona Bank.
While Resona Bank serves specific regions in Japan, Resona Holdings itself is a holding company that operates at a higher level, overseeing various subsidiaries and affiliated financial entities within its group.
It’s important to note that Resona Bank, as one of Resona Holdings’ subsidiaries, may provide regional banking services to customers in particular areas of Japan.
Concordia Financial Group
This bank started in 2016 when two banks joined together. They have a capital of about 150 billion yen. There’s a bigger group that’s like the boss of this bank, and it’s in charge of both the Bank of Yokohama and Higashi-Nippon Bank.
This group helps with all kinds of money stuff, like lending, and they have lots of places where they work, like branches and ATMs. They don’t just help people in Japan, they also carry out other financial activities in other countries too. So, they’re here to help a lot of people with their money matters.
Fukuoka Financial Group
This bank group started in 2007. Fukuoka Financial Group does all kinds of money stuff, like taking your money, giving out loans, and helping with things like foreign currency.
They also help companies and people with various financial services, like guarantees and loan management.
In addition, they have lots of places where they work, like 328 branches in different areas, and even a few offices in other countries in Asia. So, they’re here to help lots of people and businesses with their money needs.
Chiba Bank
Chiba Bank is one of the biggest regional banks in Japan that started in 1943. This bank has a total asset of about 14,611.9 billion yen. They’re all over the place with 182 branches, lots of ATMs, and a few places where you can exchange money. They even have a few offices in other countries.
Additionally, Chiba bank offers various kinds of banking services such as giving out loans, credit card issues, and much more.
Hokuhoku Financial Group
This bank was founded in 2003 and it offers different kinds of banking services to people as well as small and medium-sized enterprises. The Hokuhoku Financial Group is a regional financial institution which is located in Japan.
Basically, Hokuhoku Financial Group serves the Hokuriku region of Japan. Therefore if you are situated in or probably have financial interests in this region, Hokuhoku Financial Group may grant convenient access to banking services.
Regional banks often have strong ties to their local communities and may offer personalized service and support to local businesses and residents.
This bank may not be as big as other banks in Japan,however, they still follow the exact rules and is also supervised by the government. In this way, the bank is still accountable and secure.
Conclusion
In Japan, the banking system has different types of banks, like foreign ones, local ones (such as regional and city banks), and trust banks. These banks handle things like regular banking for everyday people, long-term loans, and even consumer loans and credit cards.
During the 1980s, these banks started doing more than just banking, like giving out loans. Then, in 1990, Japan had some of the biggest banks in the world in terms of money they managed. These banks also started doing international money trading and expanded to other countries, making Japan’s banking system important worldwide.
Now, Japan is moving into the digital age of banking. Traditional banks are using technology to make banking easier and safer. They offer online and mobile banking for customers.
So in this guide, we compiled the top 10 banks in Japan and were able to discuss the financial structure of each bank.
Hope you found this article insightful.
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FAQs
Which bank is the best in Japan?
With locations across Japan and in 40 other countries, MUFG Bank is not just the biggest bank in Japan but also among the largest globally.
What is the role of regional and cooperative banks in Japan?
In addition to the top banks, Japan has regional banks that serve specific geographic areas and cooperative banks that focus on specific sectors, such as agriculture. These banks play a vital role in their respective regions and industries.
Are there online or digital banks in Japan?
Absolutely! Japan is a digital country. They are so innovative and with the help of technology, they have advanced in various sectors with the banking unit inclusive. Therefore, the banks in Japan can provide you with financial services via digital platforms.
What are the factors I should consider if I want to open a bank account in Japan?
There are certain things you should look out for when you want to open a bank account in Japan. Some of those factors may include; the kind of account you need( do you need a savings or current account?), you might also want to look at the bank fees as well as interest rates.
Another thing you need to consider is the location of the branch.
