Japan’s Seven Bank eyes overseas remittances

Seven Bank said it will start overseas remittance services, possibly in fiscal 2010, from accounts at the bank to preregistered overseas accounts.

Seven Bank, a Seven & I Holdings Co. arm that runs a network of more than 14,000 automated teller machines at convenience stores and elsewhere, said it will offer the service in conjunction with Western Union, a major U.S. remittance service provider.

The bank said it believes there is sizable demand for such remittance services, particularly among foreign migrant workers in Japan, who currently number about 2.2 million.

Such migrant workers are estimated to send some ¥1 trillion a year overseas, according to Seven Bank.

At present, major domestic commercial banks charge around ¥5,000 per remittance. Seven Bank said it expects to cash in on substantial demand as it plans to undercut its competitors.

Those who already have or open an account at Seven Bank will be able to send money overseas around the clock from the bank's ATMs or via its Web site if they register information on recipients' accounts beforehand, it said.

IAMTN: Japan is going to open up this year and next and it looks as though WU are already establishing a broad network.