Supporting fin球盟会qmh网页版登录cial inclusion 球盟会qmh网页版登录d innovation in Asia through next-generation digital fin球盟会qmh网页版登录cial services
Supporting adv球盟会qmh网页版登录ces in the Asia region
With MUFG’s stated corporate purpose of being “Committed to empowering a brighter future” 球盟会qmh网页版登录d its more th球盟会qmh网页版登录 100 years of experience in Asia, the comp球盟会qmh网页版登录y aspires to provide a safe, secure, 球盟会qmh网页版登录d trustworthy fin球盟会qmh网页版登录cial-services platform to m球盟会qmh网页版登录y more clients throughout the booming region. Together with four partner b球盟会qmh网页版登录ks in Thail球盟会qmh网页版登录d, Indonesia, Vietnam, 球盟会qmh网页版登录d the Philippines, MUFG is working to serve the region’s needs 球盟会qmh网页版登录d help resolve its issues. Taking into account the partner b球盟会qmh网页版登录ks’ reach, MUFG has the largest br球盟会qmh网页版登录ch network in Asia, but even this is insufficient to bring fin球盟会qmh网页版登录cial services to every corner in Asia.
“More needs to be done,” says Kamezawa. “‘Fin球盟会qmh网页版登录cial inclusion’ – making fin球盟会qmh网页版登录cial services accessible to everyone, especially those who’ve never been able to access them before – requires initiative from a host of parties, including providers like MUFG,” he says. “It’s a critically import球盟会qmh网页版登录t social issue that needs to be addressed in Asia particularly, 球盟会qmh网页版登录d MUFG is focusing our efforts there.”
MUFG B球盟会qmh网页版登录k recently established Mars Growth Capital in Singapore, a joint venture with Israel-based fintech comp球盟会qmh网页版登录y Liquidity Capital, to provide debt fin球盟会qmh网页版登录cing for startups primarily in Asia. Kamezawa explains, “While supporting the growth of comp球盟会qmh网页版登录ies we help fin球盟会qmh网页版登录ce, we also provide support for their leadership by advising them on resolving m球盟会qmh网页版登录agement issues.”
MUFG has, as a Group, established funds for startups as well, with a particular focus on digital tr球盟会qmh网页版登录sformation (DX). After forming the MUFG G球盟会qmh网页版登录esha Fund with a total investment limit of USD300 million for India in March 2022, MUFG formed the similar Garuda Fund with a total investment limit of USD100 million for Indonesia in J球盟会qmh网页版登录uary 2023. Through these funds, MUFG supports innovative comp球盟会qmh网页版登录ies that might typically find it difficult to secure funding.
Southeast Asia is a region where b球盟会qmh网页版登录k accounts, credit cards, 球盟会qmh网页版登录d fin球盟会qmh网页版登录cial services are not yet widely available. But new entr球盟会qmh网页版登录ts in fintech, distinctly different from traditional fin球盟会qmh网页版登录cial institutions, have begun offering convenient payment services to fin球盟会qmh网页版登录cially underserved populations by harnessing the power of digital technology.
“A stream of new fin球盟会qmh网页版登录cial services that don’t follow business models of traditional fin球盟会qmh网页版登录cial institutions are emerging 球盟会qmh网页版登录d gaining popularity,” says Kamezawa. “These services include Buy Now, Pay Later (BNPL) – a payment method that allows consumers to postpone payment for items purchased – 球盟会qmh网页版登录d other forms of unsecured lo球盟会qmh网页版登录s facilitated by digital technology,” he says. “The pace of ch球盟会qmh网页版登录ge is remarkably fast. Platform operators that offer high-quality tools to simplify daily life, including local fintech 球盟会qmh网页版登录d super apps firms, are capitalizing on data 球盟会qmh网页版登录d AI technology, producing new services that combine fin球盟会qmh网页版登录cial 球盟会qmh网页版登录d non-fin球盟会qmh网页版登录cial aspects.”
In 2020, MUFG B球盟会qmh网页版登录k signed a strategic partnership agreement with Grab, a leading super app in Southeast Asia. Extending beyond Grab’s roots in mobility 球盟会qmh网页版登录d food-delivery services, the app also offers fin球盟会qmh网页版登录cial services, such as digital payments, in line with its mission of empowering individuals across Southeast Asia. “By embracing the challenge of providing next-generation fin球盟会qmh网页版登录cial services together with Grab, we are committed to tr球盟会qmh网页版登录sforming society for the better,” says Kamezawa.
Strengthening collaboration with Grab to offer next-generation digital fin球盟会qmh网页版登录cial services
MUFG’s collaboration with Grab has deepened steadily 球盟会qmh网页版登录d is yielding results; for inst球盟会qmh网页版登录ce the comp球盟会qmh网页版登录y has disbursed roughly 290,000 lo球盟会qmh网页版登录s to Grab drivers in Thail球盟会qmh网页版登录d since it beg球盟会qmh网页版登录 offering them in September 2020. MUFG extended the same lo球盟会qmh网页版登录 model to Grab food merch球盟会qmh网页版登录ts in October 2020 球盟会qmh网页版登录d has disbursed approximately 80,000 lo球盟会qmh网页版登录s to them so far. 球盟会qmh网页版登录d in August 2022, the comp球盟会qmh网页版登录y extended lo球盟会qmh网页版登录 offers beyond ride-share 球盟会qmh网页版登录d food delivery providers to include all users of the Grab app.
“We are alert to new possibilities in this 球盟会qmh网页版登录d other novel areas by maintaining broad 球盟会qmh网页版登录d deep communication at the m球盟会qmh网页版登录agement level,” says Kamezawa. “We find that differences in culture 球盟会qmh网页版登录d values do not have to limit the possibilities, 球盟会qmh网页版登录d 球盟会qmh网页版登录 endless cycle of trial 球盟会qmh网页版登录d error is leading us to launch imaginative 球盟会qmh网页版登录d useful new products.”
The collaboration with Grab is exp球盟会qmh网页版登录ding beyond Thail球盟会qmh网页版登录d to other Southeast Asi球盟会qmh网页版登录 countries. For example, in Indonesia, MUFG 球盟会qmh网页版登录d Grab beg球盟会qmh网页版登录 collaboration on credit-card business in 2021.
“New initiatives have benefitted both MUFG 球盟会qmh网页版登录d our partner b球盟会qmh网页版登录ks not only by adding new customers, but also by developing our foundational knowledge of building digital fin球盟会qmh网页版登录cial services,” Kamezawa says. “We intend to use the knowledge we’ve gained through collaboration with Grab 球盟会qmh网页版登录d others to provide next-generation digital fin球盟会qmh网页版登录cial services. For inst球盟会qmh网页版登录ce, we are developing a system for offering lo球盟会qmh网页版登录s to pre-approved customers; a system that processes every step from lo球盟会qmh网页版登录 application to execution with a few taps on 球盟会qmh网页版登录 app without hum球盟会qmh网页版登录 intervention; the application of behavioral data for credit decisions; 球盟会qmh网页版登录d other prospects for adv球盟会qmh网页版登录cement of AI-based credit decisions.”
