Banking

Mizuho Bank president resigns after damaging system glitches

Mizuho Bank president Koji Fujiwara is set to step down from his position as he takes responsibility for a series of system crashes at the major Japanese bank.

Mizuho had to shut down 70% of its ATMs in February

Fujiwara was appointed as chair of the bank earlier this year, but he will now no longer take up the role. According to Nikkei, group CEO Tatsufumi Sakai remains in his job but may have to take a pay cut.

Four system failures rocked Mizuho Bank in two weeks at the end of February 2021, including a temporary shutdown of 70% of the bank’s ATMs.

A committee has already been established to investigate the issues, with final recommendations expected to be published later in June.

Nikkei reports the Japanese Financial Services Agency is still considering administrative sanctions on the bank after interviews with employees.

Fujiwara was set for retirement as president in April, ready to step into place as the bank’s new chairman. After the glitches his appointment was rescinded, as he grappled with preventing a repeat of the system errors.

The bank’s chief information officer is also set to vacate his position. The bank is looking to invite executives from technology providers to underpin its accounts system.

Mizuho, founded in 2001 from the merger of three separate Japanese lenders, holds assets of more than $1.8 trillion. It employs 60,000 people across 880 offices.

The bank is understood to be implementing Oracle FSS’s Flexcube to modernise its corporate and commercial banking business. It has been gearing up for major change since 2016.

The bank uses a range of platforms in its international operations, including Finastra’s old MidasPlus workhorse in Europe and Asia.

Related: Exclusive interview: Minna Bank – Japan’s new challenger bank


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