Mitsubishi UFJ Financial Group, a major financial company, announced that it will acquire a consumer finance company using smartphone apps in Southeast Asia for about 87 billion yen in Japanese yen.
Among megabanks, there is an active movement to capture demand in Southeast Asia, which continues to grow, through the digitalization of finance.
According to the announcement, Mitsubishi UFJ Financial Group will acquire two local subsidiaries of a Dutch company that develop consumer finance in Indonesia and the Philippines through its subsidiary Bank of Ayudhya in Thailand.
The purchase price is about 600 million euros, which is about 87 billion yen in Japanese yen, and we hope to complete the procedure by June next year.
The two companies to be acquired are developing a service for customers who purchase electrical appliances in Indonesia and the Philippines from loan screening to repayment using a smartphone app.
Mitsubishi UFJ aims to capture demand from the growing middle class in Southeast Asia.
With the domestic earnings environment becoming increasingly severe due to prolonged low interest rates,
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Mizuho Bank also invested in a company in the Philippines in February this year that provides loans and other services using smartphones without having a branch.
Sumitomo Mitsui Banking Corporation is also
moving to strengthen the digitalization of finance in Southeast Asia, where growth continues.