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Mitsubishi UFJ (MUFG) to Expand in APAC Region With New Investment
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Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) and its consolidated subsidiary, MUFG Bank, as a lead investor, signed an investment agreement for $195 million in Ascend Money, along with the Finnoventure Private Equity Trust I fund. This private equity fund is managed by Krungsri Finnovate, a subsidiary of the Bank of Ayudhya (Krungsri).
Thailand-based fintech company, Ascend Money, offers advanced payments and financial services to 30 million active users across seven Southeast Asian countries.
This investment supports MUFG’s strategy to expand its commercial banking business in the Asia-Pacific (APAC) region, its second home market. Within this region, there is a growing trend for digital financial service providers to utilize the latest technological advancements. These advancements then offer financial services to unbanked or underbanked consumers and SMEs.
Taking advantage of the growing market, MUFG has invested in several digital startups and tech firms in the APAC region since 2020. These include investments in Grab, Home Credit, Akulaku, Garuda Fund and DMI Finance.
Moreover, in 2023, the bank launched the MUFG Openly-connected Digital Ecosystem, intending to share knowledge among the companies that Mitsubishi UFJ has invested in.
Through this strategic investment, MUFG aims to reap the benefit of fast-growing digital finance in the APAC region. It will also enhance the bank’s business franchise value over the medium to long term. Through this investment, MUFG intends to grow its customer base while seeking further business collaboration opportunities within its network.
Furthermore, MUFG will likely bolster its capacity to meet the financial needs of various segments across Thailand’s business community and society. This strategic move will allow MUFG to utilize Thailand's growth potential and enhance financial integration, all the while supporting Ascend Money's expansion.
In its previous efforts to grow in the APAC regions, in 2023, the company, through MUFG Bank and PT Adira Dinamika Multi Finance Tbk, acquired 80.6% shares in PT Mandala Multifinance Tbk. With this, the company expanded its auto loan business in Indonesia. In 2022, Mitsubishi UFJ bought 100% and 80% stakes in Home Credit B.V.’s units, HC Consumer Finance Philippines, Inc. (HC Philippines) and PT Home Credit Indonesia (HC Indonesia), respectively. These strategic expansion efforts are expected to continue to support MUFG’s financials in the long run.
Over the past six months, shares of MUFG have gained 20.2% on the NYSE compared with the industry’s 0.7% growth.
Image Source: Zacks Investment Research
Currently, Mitsubishi UFJ carries a Zacks Rank #4 (Sell).
In June 2024, KKR & Co. Inc. (KKR - Free Report) announced that it is looking to enter into the private credit market in Japan to offer an alternative to bank loans. This will strengthen its foothold in Japan.
KKR intends to expand its offerings to institutional investors and high-net-worth individuals within the country.
The same month, Citigroup Inc. (C - Free Report) launched Citi Commercial Bank in Japan to expand its commercial banking in key growth areas across certain clusters.
With its latest launch in Japan, Citigroup’s commercial banking business now operates in several Asian markets, including mainland China, Hong Kong, India, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam.
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Mitsubishi UFJ (MUFG) to Expand in APAC Region With New Investment
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) and its consolidated subsidiary, MUFG Bank, as a lead investor, signed an investment agreement for $195 million in Ascend Money, along with the Finnoventure Private Equity Trust I fund. This private equity fund is managed by Krungsri Finnovate, a subsidiary of the Bank of Ayudhya (Krungsri).
Thailand-based fintech company, Ascend Money, offers advanced payments and financial services to 30 million active users across seven Southeast Asian countries.
This investment supports MUFG’s strategy to expand its commercial banking business in the Asia-Pacific (APAC) region, its second home market. Within this region, there is a growing trend for digital financial service providers to utilize the latest technological advancements. These advancements then offer financial services to unbanked or underbanked consumers and SMEs.
Taking advantage of the growing market, MUFG has invested in several digital startups and tech firms in the APAC region since 2020. These include investments in Grab, Home Credit, Akulaku, Garuda Fund and DMI Finance.
Moreover, in 2023, the bank launched the MUFG Openly-connected Digital Ecosystem, intending to share knowledge among the companies that Mitsubishi UFJ has invested in.
Through this strategic investment, MUFG aims to reap the benefit of fast-growing digital finance in the APAC region. It will also enhance the bank’s business franchise value over the medium to long term. Through this investment, MUFG intends to grow its customer base while seeking further business collaboration opportunities within its network.
Furthermore, MUFG will likely bolster its capacity to meet the financial needs of various segments across Thailand’s business community and society. This strategic move will allow MUFG to utilize Thailand's growth potential and enhance financial integration, all the while supporting Ascend Money's expansion.
In its previous efforts to grow in the APAC regions, in 2023, the company, through MUFG Bank and PT Adira Dinamika Multi Finance Tbk, acquired 80.6% shares in PT Mandala Multifinance Tbk. With this, the company expanded its auto loan business in Indonesia. In 2022, Mitsubishi UFJ bought 100% and 80% stakes in Home Credit B.V.’s units, HC Consumer Finance Philippines, Inc. (HC Philippines) and PT Home Credit Indonesia (HC Indonesia), respectively. These strategic expansion efforts are expected to continue to support MUFG’s financials in the long run.
Over the past six months, shares of MUFG have gained 20.2% on the NYSE compared with the industry’s 0.7% growth.
Image Source: Zacks Investment Research
Currently, Mitsubishi UFJ carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Expanding Presence in Asia
In June 2024, KKR & Co. Inc. (KKR - Free Report) announced that it is looking to enter into the private credit market in Japan to offer an alternative to bank loans. This will strengthen its foothold in Japan.
KKR intends to expand its offerings to institutional investors and high-net-worth individuals within the country.
The same month, Citigroup Inc. (C - Free Report) launched Citi Commercial Bank in Japan to expand its commercial banking in key growth areas across certain clusters.
With its latest launch in Japan, Citigroup’s commercial banking business now operates in several Asian markets, including mainland China, Hong Kong, India, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam.