The collaboration between MUFG and Grab is aimed at introducing new paths in technological advancement and the development of a digital economy in Asia
Mitsubishi UFJ Financial Group (MUFG), through its core banking subsidiary MUFG Bank, has entered into an investment alliance with Singapore-based ridesharing firm Grab.
Under the new alliance, MUFG will invest a total of up to $706m in Grab, sourced from MUFG Bank, MUFG Innovation Partners and Krungsri Finnovate.
In addition, MUFG will also leverage its strategic partner bank relationships in Southeast Asia to provide advanced financial services to Southeast Asian clients.
The firm has equity stakes in Southeast Asian banks, including Vietnam Joint Stock Commercial Bank for Industry and Trade in Vietnam, Bank of Ayudhya in Thailand, Security Bank in the Philippines and PT Bank Danamon in Indonesia.
Grab leverages advanced AI technology for everyday digital services
Grab offers convenient digital services for everyday ride-hailing, food delivery and digital payments, by leveraging advanced AI technology, and is recognized for offering advanced financial services.
Currently, the Grab app provides users with an access to over 9 million drivers, merchants and agents.
Through its alliance with Grab, MUFG intends to enhance synergies in its regional network, including partner bank relationships in Southeast Asia and further expand business opportunities in the region.
In addition, the alliance would combine its strengths in financial knowledge and know-how in financial product development, creditworthiness, and risk management, with Grab’s technologies and data management expertise, to provide advanced financial services.
Grab has also secured a $150m investment from TIS, a provider of network solutions and system integration services.
As part of the agreement, Grab and TIS will collaborate on enhancing the digital payment infrastructure in the region and in Japan to enhance the adoption of cashless payment options, such as GrabPay.
Grab president Ming Maa said: “We are excited to work with our partners MUFG and TIS to co-develop financial products and solutions for the region. Ensuring greater access to affordable and accessible financial services and products is key to growing financial inclusion in Southeast Asia.
“The continued support from world-leading investors demonstrates their confidence in Grab’s super app strategy and our ability to build a sustainable long-term business.”