IBM Japan Ltd is to launch an internet-based banking service for Japanese regional banks, enabling them to outsource the function for a fraction of the cost of setting up their own systems. Suruga Bank and Juroku Bank have already agreed to start services in October, according to a Japanese press report, with another 20 to 30 regional banks expected to join up with in the next 12 months. The service includes answering account balance inquiries and remitting money to bank accounts, the report said. IBM Japan will maintain the systems 24 hours a day and oversee security on behalf of the banks. IBM Japan will install a server for each bank at its joint operating center and link the servers with the bank’s host computer.
