Japan’s MUFG to invest $195m in Thai fintech firm

Japanese financial group Mitsubishi UFJ Financial Group (MUFG) will invest $195 million in Thai mobile payments operator Ascend Money to expand its presence in Southeast Asia’s consumer finance market.

MUFG’s Thai subsidiary, Bank of Ayudhya (Krungsri), is teaming up with Ascend Money, an affiliate of Thailand’s CP Group. Together, they will acquire a 10 per cent stake in Ascend Money.

The deal extends beyond just financial investment. MUFG will dispatch an executive to Ascend Money’s board, facilitate technology exchanges and knowledge sharing, and explore potential collaborations with CP Group.

MUFG will leverage Ayudhya’s expertise in areas like: credit decision support and developing robust corporate governance systems. This collaboration aims to capitalise on Ayudhya’s strong retail loan portfolio and branch network in Thailand.

The region’s burgeoning consumer finance market presents a significant growth opportunity, and MUFG is actively positioning itself to capture a share of this market.

MUFG’s commitment to Southeast Asia is further evidenced by its 2022 investments in Indonesian buy-now-pay-later platform Akulaku and the acquisition of Philippine and Indonesian subsidiaries of a Dutch smartphone financing services company.

Attribution: The Nikkei Asia