Three “Unreachable Systems” Reflecting a Larger Issue

Hiroshima Bank has announced that it will phase out passbook transactions for withdrawals and transfers at ATMs by the end of 2030. The rental bicycle service “Peace Cycle” was temporarily suspended due to system malfunctions. Additionally, over 1.7 billion yen worth of premium vouchers remain unused, with about 30% of citizens not applying for them.

These three events occur in different domains: finance, transportation, and administration. However, when viewed together, a common outline emerges. Each represents a structure designed to “ease the burden for someone” that ultimately failed to reach those it was intended to help.

What I want to question is not the responsibility for these failures, but rather: who were these systems originally meant to assist?

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1. The Day Passbooks Disappear—Hiroshima Bank to End Passbook Transactions at ATMs

Hiroshima Bank has indicated its plan to gradually end passbook transactions for withdrawals and transfers at ATMs by the end of 2030. The background to this decision includes a decrease in passbook transaction volumes and rising maintenance costs for ATMs. Local banks across the country are reducing the number of ATMs, and Hiroshima Bank is part of this trend.

The shift to digital banking is likely a rational decision for banks in terms of changing their cost structure. The stamp tax on passbooks (200 yen per account annually), along with maintenance costs for ATM paper and equipment, can accumulate to hundreds of millions of yen. Considering the sustainability of management, such reductions are unavoidable.

However, I would like to pause for a moment. The aging rate in Hiroshima Prefecture is about 30%, and it is even higher in mountainous areas. There are still people who visit ATMs once a month with their passbooks to withdraw their pensions and divide their living expenses into envelopes. Even if they own smartphones, how many elderly individuals can complete the initial setup of a banking app on their own? Behind the term “digital transition” lies a mundane yet crucial fact: the need for human support and time to facilitate this transition.

Hiroshima Bank claims it will establish support systems at branches to assist with the transition. However, how will this align with the reality of branch consolidations leading to fewer locations? When the rationalization of systems halts right before reaching those who need it most, it raises the question: for whom was this rationality intended?

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2. Stopped Bicycles—The Fragility of the “Peace Cycle” System

The shared bicycle service “Peace Cycle,” operating in downtown Hiroshima, has approximately 150 ports and around 1,000 bicycles, becoming a staple for commuting and tourism. However, it faced a temporary halt due to system malfunctions.

What is noteworthy is not the malfunction itself, but the lack of smooth communication regarding alternative options and recovery timelines when the service stopped. When a service positioned as a “complement” to public transportation ceases to operate, users are expected to revert to the original public transport options—this is the theoretical assumption. However, in reality, there are people who have structured their commuting routes around the existence of Peace Cycle, especially in areas with limited bus routes. Once a complement becomes integrated into daily life, it transforms into infrastructure.

Infrastructure requires trust in its continuous operation. System malfunctions are inevitable. The real issue lies in how well the design incorporates responses for when the service stops—information dissemination during outages, suggestions for alternatives, and transparency in recovery processes.

It is far more challenging to “sustain” a system than to “create” one. The temporary suspension of Peace Cycle quietly exposed the thin operational design of new mobility solutions in rural cities.

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3. The 1.7 Billion Yen That Did Not Reach—The Structural Failure of Premium Vouchers

The premium vouchers issued by Hiroshima City are a measure aimed at revitalizing the local economy. A certain premium is added to the purchase amount, which can be used at designated stores within the city. However, about 30% of citizens did not apply, resulting in over 1.7 billion yen remaining unused.

Let’s consider the significance of the figure 1.7 billion yen. This represents a portion of the sales that should have reached local businesses from the total amount issued. Funds that were supposed to flow to restaurants in shopping districts and individually-owned retail stores did not materialize.

Why did it not reach them? Several factors can be considered: the application process was primarily digital, which may have alienated those accustomed to paper applications; the stores where the vouchers could be used did not align with residents’ daily lives; or some may not have even been aware of the program’s existence. Each of these points should have been considered during the design phase of the “delivery system.”

Premium vouchers have been repeatedly implemented by municipalities across the country, yet there are surprisingly few examples where the analysis of “those who did not apply” has been reflected in the improvement of the program. Measuring the satisfaction of those who applied is straightforward. However, the silence of the 30% who did not apply holds the essence of the system’s failure to reach its intended audience.

If the administration has decided to “deliver,” it bears the responsibility to understand the structural reasons for why it did not reach its intended recipients. The 1.7 billion yen represents the weight of goodwill that went unfulfilled.

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The Intersection of Three Events

The end of passbooks at Hiroshima Bank signifies “efficiency,” the suspension of Peace Cycle highlights “operational fragility,” and the unused premium vouchers reflect a “discrepancy between design and reality”—on the surface, these appear to be separate issues.

However, when we overlay the structures, a common question arises: To what extent did the designers of these systems consider the lives of those they were meant to serve?

Efficiency, digitization, and economic policies are merely means to an end. When these means become the ends themselves, the systems begin to exist not to “deliver” but to “create.” And as these created systems accumulate without reaching their intended recipients, the impact of this accumulation gradually manifests in the lives of people in rural cities.

As bus frequencies decrease, bank branches become more distant, bicycles stop operating, and information about vouchers fails to reach residents, each of these represents a small inconvenience. However, when they overlap in the lives of the same individuals, “inconvenience” approaches the threshold of “exclusion.”

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Points of Attention Moving Forward

Let’s outline key points to watch regarding the three cases moving forward.

Hiroshima Bank: What specific support systems will be established during the transition period until 2030? Will there be outreach support and assistance with digital operations specifically for elderly residents in mountainous areas? While the length of the transition period is commendable, having a period alone does not solve the issue.

Peace Cycle: Will there be a public disclosure of the causes of the malfunction and measures to prevent recurrence? Additionally, will the flow of information to users during outages be improved? Trust in a system is determined by how it responds when it stops.

Premium Vouchers: Will there be an analysis of the demographics of those who did not apply, and will this be reflected in future measures? There are concrete areas for improvement, such as diversifying application channels, expanding the list of usable stores, and revisiting awareness strategies.

In each case, the question remains: how will those who created the systems confront the reality of their failure to reach their intended audience?

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To the People Beyond the Systems

Efficiency is not inherently bad. Digitization and economic policies each have rational objectives. However, a system only becomes a system when it successfully reaches its intended audience. A system that fails to reach its audience is no different from a blueprint left on a shelf.

The simultaneous visibility of three “unreachable systems” in a single local city like Hiroshima carries some significance. It may be a coincidence, but beneath this coincidence are the same people living in the same city.

When drawing up the blueprints for systems, the final thing to confirm should be simple: Who will this system make a little easier for in their daily life once it reaches them?