MUFG Credit Card Subsidiary Stops New System Development and Rethinks Strategy Based on Blockchain Settlement Network

On April 22, Mitsubishi UFJ NICOS, a credit card subsidiary of Mitsubishi UFJ Financial Group (MUFG), stopped developing new systems because it could not predict the profit proportional to the investment. The "GO-NET" high-speed settlement network based on blockchain technology developed by Mitsubishi UFJ Financial Group and Akamai Technologies will begin to provide services in the first half of 2020. Mitsubishi UFJ NICOS will also use this (GO-NET) as a basis to abandon the system integration that will burden the new service and rethink its strategy. Remarks: It is reported that Mitsubishi UFJ NICOS provides three kinds of credit card services: DC card, MUFG card and NICOS card. Because the weekly credit card management system is different, additional funds are required. The company started the development of a new system in 2016. It originally planned to invest 150 billion yen in development costs until the March 2022 period, and has now invested 75 billion yen.