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Banking & Finance

MUFG leads Japanese banking into the cloud

Contract with Amazon seen saving money, speeding fintech offerings

Mitsubishi UFJ Financial Group will adopt a cloud-based IT system that should help the bank's fintech offerings.

TOKYO -- Mitsubishi UFJ Financial Group will become the first major Japanese bank to adopt internet-based computing in its information technology system.

The shift to cloud computing, with Amazon.com as a provider, will save the group around 10 billion yen ($87.2 million) in costs over five years and accelerate the provision of services tied to financial technology, MUFG reckons.

Japanese banks have notoriously user-unfriendly IT systems. Many wonder anxiously whether these complex patchworks of upgrades possess the flexibility to adapt to financial technology and other innovations.

MUFG initially will put market research and fintech functions on the cloud. Adding new functions with internet-based computing does not require adding servers, so the process from planning to building the functions takes only around one month instead of the four needed with the previous method, the company said.

Bank of Tokyo-Mitsubishi UFJ and other MUFG units maintain their own data centers. Shifting to the cloud will put the group on a common IT platform, easing the creation of services that span banking, securities brokering and other areas.

MUFG plans to channel the cost savings into strategic IT investments, and the bank will develop a corps of tech talent.

(Nikkei)

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