business

Mizuho Bank suffers 5th Japan-wide system failure of 2021

46 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© KYODO

©2021 GPlusMedia Inc.

46 Comments
Login to comment

 Its customers were informed by a notice on the group's websites posted 30 minutes before branches opened.

In short, customers showed up at the bank and got told they should have looked at the website...

"We take it extremely seriously that the failure happened while we were working to prevent any recurrence following the previous crashes in February and March," 

Two months worth of crashes or 4 crashes later...they crash again. The PR department is fighting an uphill battle...

Asked about the possibility of his resignation, Sakai said he wanted to fulfill his responsibility by looking further into the cause of the latest failure and beefing up the preventive measures the company is currently implementing.

Long story short: he continues to cling on to his job as he has been since February.

Chief Cabinet Secretary Katsunobu Kato told a press conference earlier in the day the system failure "significantly damages the credibility of financial institutions and is very regrettable," noting that the bank experienced four separate problems in February and March that "greatly affected individual and corporate users."

A third-party panel consisting of lawyers and system management experts said in a report released in June that the previous four problems were caused by factors such as inadequate deployment of technology-related staff and a corporate culture in which employees hesitated to speak up during emergency situations to avoid responsibility.

Long story short: the problem is J-corp culture as in: clueless about IT and a tendency to be hush-hush about problems. 4 problems in February and March and obviously nothing changed since then, hence a big chance that things go "whoopsie" again somewhere down the line...

Full disclosure: back in Europe, I did work for one of the 4 banks which merged into that monstrous "blob" that is known today as "Mizuho" until it did become Mizuho. As such, I somehow keep an eye on what is going on (I also still have tons of friends and colleagues back in Europe still working there). The 20-year history of Mizuho is littered with headline-making IT-problems, not even mentioning headlines of dealings with the J-mob (i.e. providing accounts or loans to them). Take my word for it: nothing has changed over the last 20 years. It's therefore not looking like anything will change over the next few years...

10 ( +12 / -2 )

The FSA would be soon knocking at their doors.

2 ( +2 / -0 )

@Fourice

Of course, they will. But so did they back in February and March, visibly with not much results...

But again, as the LDP is in bed with the Keidanren (the Japan Business Federation), don't expect more than a slap on the wrist.

As said, Mizuho has been a sick little puppy for over 20 years...and the fundamental problems that rock Mizuho and the big J-Corp boys are exactly the same as those rocking the LDP J-gov. Everybody's got everybody's back. Therefore: don't expect much change on anything in the foreseeable future...

8 ( +8 / -0 )

I finally said goodbye to my mizuho account on Thursday by closing the two accounts I had with them. I had to fill in a couple of papers and then had to wait over an hour sitting still while they closed my accounts. There was little to no other clients at the bank at the time too...

Terrible online banking that looks as if it was stuck in the times when internet just begun (website style)

The app on the phone is terrible too. You could not even see your history beyond a couple of months back. (if I remember correctly)

12 ( +12 / -0 )

Addition: the strongest force, political or else, in Japan is...inertia.

5 ( +8 / -3 )

Well they certainly don't take it seriously enough since it's the fifth time. If memory serves, they also had a breakdown on their opening day. Customers would serve themselves well to take their business elsewhere.

1 ( +2 / -1 )

Welcome to third world country of Japan.

3 ( +7 / -4 )

I wonder if I'll go to the bank one day and find that all the money in my account is gone.

1 ( +2 / -1 )

a corporate culture in which employees hesitated to speak up during emergency situations to avoid responsibility.

The above statement is applicable to the country as well. Just replace corporate with national and employees with citizens and viola Japan in a nutshell.

3 ( +5 / -2 )

Not directly on topic, but yesterday Mizuho sent me a request to update proof I had an alien card(after 15 years of banking and investment with them). I had to photocopy my card, take the scissors and cut out a copy of each side, paste it on an A4 sheet they had supplied and then snail mail it to them.

i felt like i was back in the 1970’s. Perhaps the problem is much wider and deeper than just IT.

11 ( +11 / -0 )

Not directly on topic, but yesterday Mizuho sent me a request to update proof I had an alien card(after 15 years of banking and investment with them). I had to photocopy my card, take the scissors and cut out a copy of each side, paste it on an A4 sheet they had supplied and then snail mail it to them.

i felt like i was back in the 1970’s. Perhaps the problem is much wider and deeper than just IT.

Likewise only tangentially related, but a few months back I got a letter from the Post Office Bank, which is one of a number of banks where I hold an account. It asked - well, technically, demanded - that I provide a whole bunch of information to prove that I wasn't a money launderer. "OK, fair enough" I thought, and gave them what they wanted. I mentioned this to my wife, who's a Japanese national. "I never got one of those" she said, and rang the bank's call centre. Now, my wife has, for a Japanese person, a pretty blunt manner when she thinks something's not right. At first she simply asked the call centre operator why her husband, a foreigner, received such a letter while she, a Japanese national, did not. The operator stated that the letters were being sent out in a particular sequence. Putting aside the fact that we live at the same address. my wife then added (in Japanese, of course, but with more than a hint of sarcasm) "You can understand why it might seem like discrimination if my husband gets one and I don't", to which the operator started sounding extremely nervous and swore up and down that it was nothing to do with any form of discrimination.

Fast forward to today, at least two months later, and she still hasn't received a letter addressed to her.

9 ( +10 / -1 )

A little while back I took six million in cash from one bank to pay off a loan at Mizuho. My stacks of paper were all in order. Everything had a hanko on it, and I faxed all the papers to them as requested, then took the originals and the cash to pay off the loan.

Four hours later I was requested to go downstairs to another department to finalize the payment.

When I got downstairs, a machine was churning out a large stack of old bills. I said to myself that looks almost like what I paid, but thicker because they were not new bills like mine.

A secretary picked up the stack, put them on a tray and carried them straight to me and said here is your loan minus a transaction fee.

Guess who got angry and started yelling?

Mizuho has issues.

3 ( +5 / -2 )

I'm going to close my savings account at Mizuho first thing Monday morning.

5 ( +5 / -0 )

Time to move away from Mizuho get a bank account at UFJ and glad I don’t work in there inept IT department

1 ( +2 / -1 )

I have has a MUFJ account for a couple of years but I'm mostly unhappy with their attitude and demands. Sumitomo is better.

3 ( +4 / -1 )

Banking systems are amongst the toughest to maintain or modernise.

You usually have multiple legacy systems (some very old), multiple locations and multiple interfaces. They are expected to run 24/7 and have online services welded on like a steampunk bunion.

Even in Europe banking services go down quite often.

Although this sounds grim, if you still have branches, be happy. In the UK bank branches have been vanishing for years. Belatedly, multibank hubs are being trialled.

4 ( +4 / -0 )

extremely regrettable

0 ( +3 / -3 )

Failure all around, Japan is really going down, it seeems.

1 ( +3 / -2 )

Mizuho has been having a Y2K moment with their prehistoric technology!

Banks and WallStreet use legacy systems because they have been stable and reliable. They have been gun shy to upgrade in fear of some kind of glitch that could cause financial meltdown.

Eventually, these systems will breakdown. Mizuho is ahead of the game for the wrong reasons!

1 ( +2 / -1 )

This seems to be an annual occurrence. Haven't used Mizuho for nearly a decade.

-2 ( +0 / -2 )

5th time this year?

excuse me……

(withdraws all entities involving Mizuho.)

-1 ( +0 / -1 )

Mizuaho.

-3 ( +0 / -3 )

Had this been a foreign bank in Japan, they would have lost their banking licence for sure.

3 ( +4 / -1 )

I stopped using MUFJ a couple months ago due to the rising cost of the transactions with them and to the fact that their web banking is pretty bad.

I switched to Rakuten. Setting up the account was a very long process, but their internet banking and apps are 100x better than the traditional banks here. Still miles away from the online banking in the west but decent nonetheless. Not to mention that, unlike most banks, a lot of transactions are free of charge.

0 ( +1 / -1 )

Best always keep some cash at home just in case. I use Prestia and am happy with their service and performance.

0 ( +1 / -1 )

Things have to change in Japan for banks, not only MIZUHO.

1 ( +2 / -1 )

titin

Shinsei is good for internet banking.

-1 ( +0 / -1 )

Shinsei credit cards are not reliable and not international anymore unless they changed it.

-2 ( +1 / -3 )

Shinsei does not have a credit card?

0 ( +0 / -0 )

Pathetic. Banking is a cut throat business. If they haven't booted those culpable it means the rot is further up the chain like in the ceo's office.

-2 ( +0 / -2 )

Whatever the card is, they really made a mess of people with their cards while traveling out of Japan as the cards were rejected. People were really stuck if they did not have another credit card issued by a different bank or institution.

-3 ( +0 / -3 )

Like the International Cash Card, the GAICA Flex prepaid card can be used in over 200 countries and territories around the world to make cash withdrawals in the local currency. If you load your Japanese Yen or foreign currencies (USD, EUR, GBP, AUD) from your Shinsei PowerFlex account to this card and you can withdraw at overseas ATMs and make payments in VISA affiliate stores in Japan and overseas*1.

Customers over 13 years old*2, residing in Japan, with Shinsei PowerFlex accounts and valid email addresses will be able to sign-up without any credit checks.

You have to load the card with a currency. It is not like a credit card or a debit card. Shinsei online banking info.

-2 ( +1 / -3 )

Shinsei:

Notice regarding the ending of International Cash Card (Overseas ATM) service

This is an advance notice for ending the International Cash Card (Overseas ATM) service function of Shinsei PowerFlex accounts. Please confirm the details below.

Ending of cash withdrawal and balance inquiry functions(Important!)

December 8, 2018 (Sat)

All services such as cash withdrawals and balance inquiry from overseas ATMs will end from this date.

We will stop offering and reissuing cash cards with the International Cash Card (Overseas ATM) service function from October 19, 2018 (Fri).

Thus, cash cards issued after October 20, 2018 (Sat) will not have International Cash Card (Overseas ATM) service function. Please use the cash card at domestic ATM locations.

-3 ( +0 / -3 )

ShinkansenCaboose

first you said credit card when in fact you mean ATM card. Before they ended it’s use overseas they sent out emails to its customers with plenty of warning.

I guess you just don’t like the Shinsei. Works well for me especially internet banking and receiving money from overseas.

People usually have more than a single bank and also credit cards and now like Apple Pay.

Most people have a Shinsei account for the foreign deposit account or the fact everything is available in English.

2 ( +2 / -0 )

When travelling overseas it’s better you have several methods of obtaining cash and making payments.

1 ( +1 / -0 )

My Mizuho and other ATM cards are also Debit, Credit cards, and handy. I use several methods all the time including carrying cash when in Japan.

Not everyone got those emails I am afraid. Do not know anyone that did actually. Knew of three people so dependant on the cards (ATM) they never thought about taking anything else. I carry three Japanese cards and three US-issued cards to cover everything.

I use an American-based Credit Union system through the State Department which is rather handy and very secure. No hoop jumping to get things done.

Want to check out 7 and iHoldings ATM though as it appears they are feeless rather than Japan Post.

Thanks for the updates and info. Hope the JP government is helping you out with your business slowed down by this Corona stuff.

Getting some sleep. Up for an 8 am flight tomorrow rather early. Ishikawa

-2 ( +0 / -2 )

Shinkansenaboose

Many of us in Japan are not American and can not have an American bank account.

0 ( +0 / -0 )

@Stefan Drapeaufaux

Yes I have had to supply information to various financial institutions recently to prove I am not a money launderer.

It’s a hassle so I closed some of the accounts.

This crap is coming from the regulators, not the financial institutions I think.

0 ( +0 / -0 )

It worked yesterday. And did I actually receive a bonus?

0 ( +0 / -0 )

Key decision makers are old and most systems are outdated in Japan , IT guys are mostly from the 90's, they update their knowledge buy reading "how to" books with pics bought at Kinokuniya. Digital technology awareness and expertise is virtually non existent in the general public including the Universities but the most important point is just lack of ideas, logic less decision-making , long term planning and leadership by the political elite e.g instead of funding IT studies from Elementary school, they decide to waste billions on a 3 week event in the summer. Pathetic!

0 ( +1 / -1 )

Stefan Drapeaufaux

Not directly on topic, but yesterday Mizuho sent me a request to update proof I had an alien card(after 15 years of banking and investment with them). I had to photocopy my card, take the scissors and cut out a copy of each side, paste it on an A4 sheet they had supplied and then snail mail it to them.

This happened to me too. When I questioned the bank about this they said it was only for non Japanese and it was because America now required it. Blame America.

0 ( +1 / -1 )

I received the same notice 18 months ago or so and ignored it. It is not a requirement.

2 ( +2 / -0 )

"...because America now required it. Blame America."

Far more likely it's due to the Common Reporting Standard (CRS), an initiative of the OECD, with over 100 countries signed on, including Japan. Banks in those countries are obligated to collect holders' tax id numbers, which in Japan is the My Number, and to exchange other account data with the tax authorities of member countries.

-1 ( +0 / -1 )

what a "nice bank" with "professionals" on the board...irony off

0 ( +0 / -0 )

I use an American-based Credit Union

What's the name of the credit union?

0 ( +0 / -0 )

I miss the days when Daisuke Matsuzaka (Baseball: Seibu Lions Japan & Boston Red Sox US) was in the news for a week, because he got a parking ticket in Japan. Maybe that is what got us into this mess in the first place. No one in Japan had their eye on the ball.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites