Mizuho System Failures a Result of Bad Corporate Culture
Mizuho Financial Group's corporate culture is what’s a at fault for repeated system failures, as it is not able to respond well to crises, lacks technological expertise and is not able to show improvement - a third-party investigation of lawyers, commission officials and executives found.
Mizuho has had four breakdowns despite spending more than 400 billion yen ($3.6 billion) to revamp its banking system in 2019. One of the glitches was so large it affected most of its ATMS, leaving thousands of bank cards and passbooks locked inside the machines.
"The atmosphere within the company is one where managers believe the best course is to take the stance that they have done what they are supposed do rather than taking the risk of actively expressing their opinion. This contributes to a lack of positive and proactive action on their part”, the investigation report said.
A Mizuho spokesperson said the bank would announce business improvement measures as soon as they were decided. Finance Minister - Taro Aso told a regular press briefing that the government planned to form an appropriate response to the issue, but further details didn’t follow.
Mizuho's shares were seen up 0.5% in morning trade.
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