MUFG picks Minna Bank’s cloud system for digital banking push

By Vriti Gothi

MUFG Bank selected the fully cloud-based core banking system developed by Minna Bank and operated by its technology subsidiary, Zerobank Design Factory (ZDF), for its new digital bank.

ZDF, part of Fukuoka Financial Group, announced in 2022 that it would offer its core banking system to other domestic and international financial institutions, as well as non-financial companies looking to provide banking services. The agreement with MUFG Bank signals the first realisation of that strategy.

The system uses a multi-cloud, microservices-based architecture combined with DevSecOps practices to improve the flexibility and efficiency of banking operations. It also incorporates Google Cloud technologies such as Kubernetes Engine for scalability, Spanner for global data consistency and Vertex AI for advanced data insights.

Minna Bank launched in 2021 as Japan’s first digital bank and now serves more than 1.3 million accounts nationwide. Its core system is designed to help financial institutions modernise legacy operations, accelerate product development and reduce operating costs, key priorities as the banking industry adapts to changing customer expectations and regulatory demands.

Kenichi Nagayoshi, President and CEO of ZDF and Minna Bank, said, “When we launched Minna Bank in May 2021 as Japan’s first digital bank, our mission was to set a new standard for customer-centric, technology-driven banking. Serving over 1.3 million accounts today, we have continuously evolved our platform to deliver reliability and innovation at scale. The first external deployment of our core system with MUFG Bank is a pivotal milestone and we are committed to helping shape the future of digital banking, both in Japan and globally.”

Masashi Nakano, Senior Managing Director and Lead for Financial Services, Asia Pacific and Japan, Accenture, said, “In Japanese banks, the need for increased management speed has highlighted key challenges with the inefficiency and high costs of existing core systems. One effective solution to address this is the adoption of a cloud-based and microservice platform bank system.”

Toby Brown, Global Managing Director for Regulated Industries at Google Cloud, said, “Our collaboration with Minna Bank reinforces that cloud-based technology can deliver flexibility, speed and reliability for core systems within global banks. Minna Bank’s use of Google Cloud’s advanced technologies is a blueprint for accelerating digital transformation far beyond banking, enabling industries from retail to mobility to seamlessly embed financial services and create new value for their customers.”

Minna Bank and ZDF plan to expand the reach of the platform to support financial institutions and other businesses looking to offer digital banking services in Japan and internationally, as demand for embedded finance and digital-first banking solutions continues to grow.