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Mitsubishi UFJ (MUFG) Enters Into an Alliance With WealthNavi

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Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) has entered into a capital and business alliance with WealthNavi, a top robo-advisor in Japan. Per the agreement, MUFG will subscribe to 9,110,000 shares of WealthNavi, which is equivalent to a 15.5% stake in the company, and also nominate one person to WealthNavi’s board of directors.

The alliance will enhance MUFG’s business performance over the medium term. In its Medium-Term Business Plan, MUFG highlighted focus on digital transformation as one of the key strategies. Since then, it has boosted its contact points for digital services for customers and also promoted the digitalization of its products and services.

MUFG and WealthNavi, through their robo-advisor business alliance, “WealthNavi for MUFG Bank” aim to jointly address customers’ diversified asset-building needs. MUFG recognizes the need to offer tailored services and supportive solutions to each customer according to their life events, based on an enhanced data platform and applications integrated among the group companies. This is expected to address each customer’s queries related to asset management.

Both companies are determined to make contributions to their customers' sound asset-building through a combination of Mitsubishi UFJ’s wide-ranging customer base and product lineup and WealthNavi’s outstanding capabilities in agile planning and product development.

Per the capital and business alliance, both companies agreed to strengthen their existing collaboration in the robo-advisor business, including Robo-NISA (Nippon Individual Savings Account, a tax-exempt small investment program in Japan), as well as develop a Money Advisory Platform. The platform will advise customers on financial products based on algorithms and collected customer data, and personal financial management.

Both companies are planning to upgrade their service lineup in a phased manner. They aim to launch an enhanced collaboration in robo-advisor services and start the development of the Money Advisory Platform by the end of 2024. The company projects the platform to be released in 2025.

Over the past six months, shares of MUFG have gained 29% on the NYSE compared with the industry’s 9.1% growth.

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Currently, MUFG carries a Zacks Rank #4 (Sell).

Foreign Banks Worth a Look

A couple of better-ranked stocks from the same space are Deutsche Bank AG (DB - Free Report) and ICICI Bank (IBN - Free Report) . DB sports a Zacks Rank #1 (Strong Buy) at present, while IBN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DB’s current-year earnings was revised 1% upward over the last 30 days. Its shares have gained 4.3% in the past three months.

Earnings estimates for IBN for fiscal 2024 were revised nearly 3% upward over the last 30 days. In the past three months, IBN shares have gained 11.2%.


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