Japan really loves money. Not even COVID-19 can stop them from coming to the banks. (Image via DailyFX)
Loving cash, Japanese banks busy amid COVID-19 pandemic
For the country where cash is king, Japan sure loves its cash. Due to their love with their cash, Japanese people still go to the banks amid the novel coronavirus disease (COVID-19) pandemic outbreak. Therefore, the banks in Japan are busy despite the government’s plea for its people to reduce outdoor activities during the state of emergency in Japan.While the lockdown is not mandatory, the Prime Minister of Japan, Shinzo Abe, declared a state of emergency for seven prefectures including Tokyo on April 7. The action was hoped to cut person-to-person contact and transmission by 70% or 80%. Moreover, the government urges the Japanese people to telework.
In the downtown areas, it might have worked. However, Mitsubishi UFJ Financial Group Inc. (MUFG) and Sumitomo Mitsui Financial Group Inc (SMFG). stated that the number of visitors declined “just barely”, only by 10% and 15% respectively. MUFG included ATMs in the figure while SMFG did not. In some residential areas, the number increased instead.
Japan’s three largest banks, MUFG, SMFG, and Mizuho, stated that they would keep their business running amid COVID-19 outbreak as they seem to be a “vital” part in the society. As a countermeasure, they put a plastic curtain at the counter as a barrier between the staff and the customers.
While the country has not seen any explosive outbreak, Japan recorded 13,444 cases. From the number, 373 people died, according to the public broadcaster Nippon Hoso Kyokai (NHK).
Japan is facing a transition from cash to e-cash. While the younger generation is adapting themselves, the elderly are still loving it. It is why banks are still crowded. One elderly visitor even said that he was not very “keen” on the cashless trend, even though Abe had once declared benefits for using it.
In fact, Japan is one of the most cash-based countries in the world. While 96% of people in S. Korea and 66% in China have gone cashless, Japan recorded below 20%.
Moreover, the teleworking period also allows some banking employees to visit the local bank branch. Previously, they could not due to the strict operational hours. While online banking is a thing in Japan, they still keep their transaction record in the paper bankbooks.
Source: https://bit.ly/2KEY9P3
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