UFJ Bank and Sumitomo Mitsui Banking Corp. have agreed to jointly develop an improved account transfer system that would allow depositors to pay their utility bills automatically, sources said Thursday.
The agreement marks the first-ever case of rival major banks joining forces in systems development, they said.
The two banks aim to have the new system up and running in September 2004, the sources said.
By sharing their systems development expertise, the core banks of UFJ Holdings Inc. and Sumitomo Mitsui Financial Group Inc. want to reduce investment costs, and create a system that prevents double withdrawals and other glitches in account-transfer systems, they said.
The banks will market the system to regional banks and other financial institutions, the sources said.
Actual development will be handled by Hitachi Ltd., to which UFJ Bank farms out systems development, and Sumitomo Mitsui Financial Group's systems arm, Japan Research Institute, the sources said.
UFJ Bank experienced major computer problems when UFJ Holdings integrated its group systems in January 2002.