Internet Banking Day

What Is Internet Banking Day?

October 12th is "Internet Banking Day" (ネット銀行の日, Netto Ginkō no Hi) in Japan. It was established by The Japan Net Bank, Limited (renamed PayPay Bank in April 2021) and was certified and registered by the Japan Anniversary Association in 2013. The date commemorates October 12, 2000, when the bank began operating as Japan's first internet-only bank. The aim of the day is to help more people learn about internet banks.

Why October 12th?

The Japan Net Bank was founded on September 19, 2000, with investment from Sakura Bank (now Sumitomo Mitsui Banking Corporation), Fujitsu, and others, and opened for business on October 12 of the same year. As the first bank of a new kind, one without branches that operated mainly online, it drew wide attention.

• Date origin: October 12, 2000, when The Japan Net Bank opened as Japan's first internet-only bank.
• Established by: The Japan Net Bank (now PayPay Bank); registered with the Japan Anniversary Association in 2013.
• Purpose: To help more people learn about internet banks.

Japan's Internet Bank Landscape

Internet banks have few or no physical branches and offer services such as transfers and balance checks online. Other well-known internet banks in Japan include Sony Bank (opened in 2001), Rakuten Bank, and SBI Sumishin Net Bank. Because they have few branches or ATMs of their own and often issue no passbooks, many offer relatively favorable deposit rates and fees. Most traditional banks also offer online banking, but it is usually an extension of branch-based services, whereas for internet banks online transactions are the core business.

Fun Facts

• Cardless ATM withdrawals: PayPay Bank lets customers use a smartphone app instead of a cash card to deposit and withdraw cash at some convenience store ATMs.
• Convenience store ATMs: Japan's convenience stores operate extensive ATM networks that serve customers of many banks, which makes branchless banking practical.
• Security: One-time passwords and biometric authentication are widely used to prevent unauthorized access.