MUFG Bank, a subsidiary of Japan’s Mitsubishi UFJ Financial Group (MUFG), has announced an investment of $200m in Jakarta-based banking and digital finance platform Akulaku.
Founded in 2016, Akulaku is a fintech firm that provides digital financial services in Indonesia and across Southeast Asia. It offers services like Buy Now Pay Later and cash lending.
The investment aligns with MUFG’s approach to meet various financial demands in Indonesia and other Asian nations and leverage their growth in a diversified way. It will also bolster the market of financial needs in online scenarios and at offline stores.
The investment offers additional assistance for Akulaku’s anticipated expansion of offering banking services throughout Southeast Asia with a focus on underserved clients and markets.
Akulaku’s future growth objectives are in line with those of MUFG, and by 2023, both parties plan to expand in new regions and markets and launch new products.
The investment follows the $100m in funding closed from Siam Commercial Bank (SCB), Thailand’s full-service bank.
In addition, a framework agreement will be made between both firms to allow Akulaku to collaborate with MUFG businesses throughout Southeast Asia on technology, product development, financing, and distribution. The relationship is based on Akulaku’s technology skills in credit, risk management, mobile banking, and client acquisition.
MUFG Bank Global Commercial Banking Business Unit CEO 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.”
With a branch in Jakarta, MUFG Bank has also built a business foundation in commercial banking in the nation by converting Bank Danamon into a consolidated subsidiary in April 2019.
In November this year, the Japanese firm acquired consumer finance company HC Philippines and HC Indonesia to strengthen the capture of financial needs at offline stores.