Japanese lender Mitsubishi UFJ Financial Group (MUFG) is seeking to invest in more tech startups to expand its customer base and streamline its operations, Bloomberg reported.
The bank is focusing on investing in digital platforms like the ride-hailing giant Grab, in which the lender invested $700m earlier this year.
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MUFG will leverage Grab’s network and expertise in artificial intelligence (AI) on nearly a dozen potential business projects in Thailand, Indonesia, Vietnam, and the Philippines, the report added.
In an interview, MUFG CEO Hironori Kamezawa said: “The digital shift has already been one of the megatrends in society, but it has picked up pace in the wake of the pandemic.
“We’re planning to generate profit by teaming up our Southeast Asian banks with Grab.
“For instance, we have a credit model and Grab has its data on customers’ behaviour. We’re trying to create new financial services by combining the two.”
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By GlobalDataThe bank aims to roll out a scoring model-based lending programme to start lending to Grab’s users and drivers in Thailand through its local partner Bank of Ayudhya.
Kamezawa said that the bank may start an AI lab with Grab by March, according to Bloomberg.
He said that “digitalisation is key to streamlining operations, especially in domestic retail banking” and added that the “bank is now seeing a jump in the use of online banking services.”
MUFG has spent over $14bn to acquire majority stakes in local lenders such as Bank Danamon Indonesia and Bank of Ayudhya.
The lender also bought 20% of the Philippines-based Security Bank and 19.7% of Vietnam-based VietinBank.
