Japan's Mizuho suffers latest glitch hitting branches nationwide

[TOKYO] Mizuho Financial Group's main banking unit suffered a system glitch that left branches nationwide unable to process transactions on Friday, the latest in a series of embarrassing system errors.

The glitch in Mizuho's core "Minori" banking system prevented in-person transactions on Friday morning, with service mostly restored by 9.50am local time.

The outage is the latest blow to the reputation of Japan's third-largest lender, which suffered a series of breakdowns between February and March this year despite spending US$3.6 billion overhauling its systems in 2019.

That revamp followed two large-scale breakdowns in 2002 and 2011.

The glitch also affected the group's trust bank unit, while automated teller machines (ATMs) and online banking services were unaffected. In-branch services are widely used by Mizuho's older and corporate customers.

"This latest trouble has pushed me towards thinking about closing my account," 41-year-old Mizuho customer Yoshiyuki Sakata told Reuters.

Japanese chief cabinet secretary Katsunobu Kato said at a regular press conference that the system glitch was regrettable and that regulators must respond firmly.

"We want Mizuho to restore its system and respond carefully," Finance Minister Taro Aso told reporters. "We have not received any report from Mizuho yet as to how they are dealing with it."

Mizuho did not immediately provide details of the outage, but said it would hold a press conference later on Friday.

A report in June commissioned by Mizuho found that its corporate culture - including an atmosphere where managers are reluctant to express their opinions and unable to respond well to crises - was to blame for its tech problems.

The fresh outage piles further pressure on group CEO Tatsufumi Sakai and banking unit head Koji Fujiwara, who both took temporary pay cuts following the earlier tech trouble.

REUTERS