TOKYO: Mitsubishi UFJ Financial Group Inc. said Wednesday that it plans to cut its number of domestic branches by 40 pct from the fiscal 2017 level, from 515 to around 300, by fiscal 2023.

The announcement was made at an explanatory session for investors.

The company judged that stepped-up cuts from its initial plan of a 20 pct reduction is possible, as the use of online transactions via smartphones and other devices is spreading faster than expected.

Mitsubishi UFJ expects a natural decline of some 6,000 workers thanks to hiring restrictions and retirements.

By accelerating efforts to streamline its workforce and branches, the company will seek to find the most appropriate allocation of management resources to important areas, including digital fields and new services.

Mitsubishi UFJ plans to increase the number of next-generation "MUFG Next" branches at which customers can use various services without meeting bank employees, via video calls and other means.

It will cut the number of conventional branches by one-third to about 170.

JIJI Press