Yamaguchi's Nishikyu Bank recently faced extraordinary demand after launching a promotional campaign offering 50,000 yen to residents of Yamaguchi Prefecture opening new ordinary savings accounts. The campaign started on January 6 and was set to run until the end of March, requiring account holders to maintain at least 1 million yen by the termination period. On the final day of the offer, February 28, eager customers began lining up outside the Ogori branch as early as dawn, with reports stating over 40 individuals were already accumulating tickets by 8:30 AM.
Signs posted at the entrance warned potential customers of expected wait times exceeding six hours, advising them to wait at home after their turn to avoid congestion inside. One excited customer from Yamaguchi city expressed her eagerness, saying, "I found out about the offer from my colleagues at work, and with rising costs, 50,000 yen would really help my living expenses."
The popularity of the campaign far exceeded Nishikyu Bank's expectations, prompting some branches to temporarily halt operations due to overwhelming demand. Although the initial end date of the campaign was set for March, it was cut short to February, and some branches had already started displaying signs indicating they had reached full capacity for account openings, even within regular business hours.
The bank's aggressive savings campaign aligns with recent monetary policy shifts from the Bank of Japan, which has raised interest rates, making it easier for financial institutions to increase lending rates. Consequently, banks such as Nishikyu Bank are ramping up their efforts to attract deposits as they seek to expand their earnings from loans.
Compared to the competition, Nishikyu Bank had lower barriers for customers to qualify for the 50,000 yen incentive. Larger banks, like Mizuho Bank, have also initiated similar campaigns offering up to 50,000 yen but with substantially more stringent requirements such as designations for salary accounts or opening investment accounts under the NISA (Nippon Individual Savings Account) scheme. Customers perceived Nishikyu's offer as more accessible, leading to increased foot traffic for account openings.
Despite the influx of funds, it remains uncertain how many of these deposits will translate to stable funds for future lending, as the money is available for withdrawal at any time, categorizing them as ordinary savings rather than fixed-term accounts. Nishikyu officials indicated they are currently unable to assess the full effects of the campaign, but acknowledged the influx of visitors, stating, "We’ve had many patrons visiting, and we understand the inconveniences caused; nonetheless, we're pleased our campaign resulted in many new account openings."
The bank's unexpected campaign success highlights not just the local desire for financial incentives amid rising living costs, but also shines light on the competitive nature of Japan's banking sector as it adjusts to rapid economic changes and fluctuates demand for lending amid increasing interest rates.