In addition to the investment, the banking and digital finance platform is anticipated to forge a framework agreement with MUFG for the former to collaborate with MUFG companies in Southeast Asia on technology, financing, product development, and distribution
MUFG Bank, a subsidiary of Japanese Mitsubishi UFJ Financial Group (MUFG), has announced its plans to invest $200m in the banking and digital finance platform Akulaku.
The investment is expected to help the fintech platform for its projected growth to fulfil the goal of offering banking services throughout Southeast Asia with a focus on underserved markets and clients.
With its presence in Indonesia, the Philippines, and Malaysia, Akulaku delivers digital banking, digital financing, digital investment, and insurance brokerage services to underserved customers in emerging markets.
In addition to the investment, Akulaku is anticipated to forge a framework agreement with MUFG for the former to collaborate with MUFG companies in Southeast Asia on technology, financing, product development, and distribution.
MUFG Bank’s global commercial banking business unit managing executive officer and chief executive Kenichi Yamato said: “Southeast Asia is key and a second home market to MUFG. Our investment in Akulaku will further solidify our commitment to this region to meet the growing financial needs of underserved customers.
“With Akulaku’s digital financial services backed by its strong technology, our journey with Akulaku will help us further contribute to the growth of this region.”
The partnership is anticipated to leverage Akulaku’s technological capabilities in credit, mobile banking, risk management, and customer acquisition.
Earlier this year, the fintech firm secured a strategic investment of $100m from Thailand’s full-service bank Siam Commercial Bank.
The company stated: “Akulaku’s emphasis on emerging markets has highlighted a vast, underserved audience in the banking industry.
“By partnering with MUFG, another innovative financial institution, we will have the knowledge, resources, and services to meet the long-term needs of our growing customer base. Both companies will benefit from shared skills and knowledge, which will enable us to expand both our products and geographical reach.”
Established in 2014, Akulaku is aiming to serve 50 million users across Southeast Asia by 2025.
Along with the company’s virtual credit card and e-commerce platform, it runs an online wealth management platform Asetku and a mobile digital bank supported by Bank Neo Commerce Neobank.