MUFG to expand lending business in Thailand with Grab investment

Chief executive Hironori Kamezawa hinted on shifts in their overseas strategy.

Japan’s Mitsubishi UFJ Financial Group will start lending to Grab users and drivers in Thailand to monetise its $706m investment in the ride-hailing firm as growth in its home market slumps, its chief executive told Reuters. MUFG agreed to invest in Grab in February.

Whilst MUFG has made a large investment in Southeast Asian banks amidst gloomy local prospects cemented by ultra-low interest rates and an ageing demographic, MUFG chief executive Hironori Kamezawa implied that a change was afoot in the lender’s overseas strategy.

“Since our investment phase is over, we are not considering making a big acquisition of commercial banks immediately but will harvest profits from the investments,” said Kamezawa, who took his post in April.

“I believe finance and other businesses will be fused in the future ... I will use Grab’s data to establish new credit models and provide financial services through the super-app.”

Here’s more from Reuters.