LEAD: UFJ Bank, Sumitomo Mitsui team up in systems development.

Japan Weekly Monitor, May, 2003

TOKYO, May 15 Kyodo

(EDS: RECASTING)

UFJ Bank and Sumitomo Mitsui Banking Corp. have agreed to jointly develop an improved account transfer system that allows depositors to automatically pay utility bills, sources close to the plan said Thursday.

The agreement marks the first-ever case of rival major banks joining forces in systems development, the sources said.

The two banks aim to have the new system running in September 2004, the sources said.

By sharing their systems development expertise, the core banks of UFJ Holdings Inc. and Sumitomo Mitsui Financial Group Inc. want to reduce their investment costs, and create a system that prevents double withdrawals and other glitches in account transfer systems, the sources...