Digitally-minded Zerobank Design Factory to Fuel Upcoming Digital Bank for MUFG in Japan
In a groundbreaking move, Zerobank Design Factory (ZDF), a subsidiary of Fukuoka Financial Group (FFG) and the technological developer behind Minna Bank's cloud-based core banking system, is powering MUFG Bank's new digital bank. This collaboration marks the first external use of ZDF's core banking technology beyond FFG [1][2][3][5].
The partnership traces back to ZDF's experience developing and operating Minna Bank's fully cloud-based system since 2021—Japan's first digital bank, which has grown to 1.3 million accounts. Minna Bank, another FFG subsidiary, built a mobile-first, cloud-native banking platform emphasizing digital services and valuable customer connections [1][2].
This expertise and technological foundation are now being extended to MUFG, one of Japan's largest financial groups, to support their entry into digital banking [1][2]. The technologies used include ZDF's cloud-based core banking system, Google Cloud as the underlying cloud platform, and collaboration with Accenture to ensure system design aligns with industry best practices and MUFG's requirements [1][2][5].
The benefits offered by this collaboration are numerous. MUFG gains a modern, scalable digital banking infrastructure that supports faster innovation and deployment. The bank can leverage proven technology from Minna Bank's successful digital banking operations, enabling it to launch banking services with enhanced digital capabilities, improving customer experience [1][5].
Moreover, this collaboration contributes to the broader digital banking ecosystem both domestically within Japan and internationally by sharing ZDF's platform beyond its original group [1][5]. Non-financial organizations looking to add banking services can also deploy ZDF's system.
Toby Brown, Global Managing Director, Regulated Industries at Google Cloud, stated that Minna Bank's use of Google Cloud's technologies is a blueprint for accelerating digital transformation beyond banking [6]. The MUFG deployment aims to improve management speed, efficiency, and reduce costs [2][4].
Established in 2007, FFG is the largest regional financial group in Japan, with its network covering the entire Kyushu region, home to more than 10% of the country's population and including cities such as Fukuoka and Nagasaki [7]. The name of Minna Bank translates to "a bank for everyone," reflecting its mission to deliver valuable connections to everyone [8].
In 2022, ZDF announced it would offer its technology to both local and international financial institutions [9]. This is the first time ZDF's solution will be used by an organization outside of FFG. The deployment of ZDF's system by MUFG aims to improve management speed, efficiency, and reduce costs [2][4].
[1] - https://www.zd-factory.jp/en/news/2023/03/01-minna-bank-mug-partnership/ [2] - https://www.zd-factory.jp/en/news/2023/03/01-mug-partnership/ [3] - https://www.zd-factory.jp/en/news/2023/03/01-mug-partnership-google-cloud/ [4] - https://www.zd-factory.jp/en/news/2023/03/01-mug-partnership-accenture/ [5] - https://cloud.google.com/blog/products/banking-finance/minna-bank-accelerates-digital-transformation-with-google-cloud [6] - https://www.zd-factory.jp/en/news/2022/09/22-google-cloud-next-2022/ [7] - https://en.wikipedia.org/wiki/Fukuoka_Financial_Group [8] - https://www.minna-bank.jp/about/philosophy/ [9] - https://www.zd-factory.jp/en/news/2022/09/26-zd-factory-offers-its-technology-to-financial-institutions/
Business and technology are intertwined in the partnership between Zerobank Design Factory (ZDF) and MUFG Bank for the creation of MUFG's new digital bank. This collaboration signifies the utilization of ZDF's banking tech, such as their cloud-based core banking system, and the applications of finance and digital services to expand and advance MUFG's business within digital banking.
