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Mitsubishi UFJ (MUFG) Invests in DMI Finance, Eyes Asia Expansion

Mitsubishi UFJ Financial Group, Inc. MUFG announced that its consolidated subsidiary MUFG Bank would invest INR 19.1 billion in DMI Finance Private Limited, a fintech company offering digital financial services in India.

DMI Finance has built a partnership model and offers fully-digitalized personal loans and point-of-sale loans, with the entire application and origination process being completed online within partners’ ecosystems.

Given the recent trend of catering to underbanked and unbanked customers through digital financial services, MUFG’s investments to tap growth in the digital financial services space are strategic fits.

Markedly, MUFG has been strengthening its commercial banking platform in Southeast Asia and is supporting growth of startups in India through the MUFG Ganesha Fund launched last year. Over the past several years, MUFG has been expanding inorganically. It continues to pursue global growth opportunities. Since 2016, the bank has completed a number of acquisitions to expand its footprint globally.

In November 2022, MUFG announced plans to acquire respective 100% and 80% stakes in Home Credit B.V.’s units — HC Consumer Finance Philippines, Inc. (HC Philippines) and PT Home Credit Indonesia (HC Indonesia). With these acquisitions, the bank seeks to further expand its retail business in Asia.

It also remains focused on its updated Medium-term Business Plan (2021-2023), which includes the upgradation and reformation of its business model, and the exploration of new business areas. In this regard, MUFG aims to develop its business model to cope with the adverse changes in the domestic or overseas business environment and achieve sustainable growth. Through such efforts, it aims to achieve a return on equity (ROE) of 7.5% by the end of fiscal 2023.

Shares of MUFG on the NYSE have gained 40.2%, outperforming the industry’s rise of 11.5% over the past year.


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Acquisitions by Other Firms

Recently, JPMorgan JPM entered an agreement to acquire Aumni. Founded in 2018, Aumni provides investment analytics software to venture capitalists. The financial terms of the deal, expected to close in the first half of 2023, were not disclosed.

The acquisition strengthens JPM’s commitment to building a leading private markets platform for companies, their employees and investors, as well as its confidence in the resilience of the venture-backed ecosystem.

New York Community Bancorp, Inc. NYCB announced that its bank subsidiary, Flagstar Bank, acquired $38 billion in assets and assumed $36 billion of liabilities of Signature Bridge Bank, N.A., from the FDIC.

The deal comes after Signature Bank was closed by the regulators following the collapse of Silicon Valley Bank. The FDIC took over the fallen bank and transferred all the deposits and substantially all the assets to Signature Bridge Bank, N.A.

NYCB received all the required regulatory approvals, including approval from the Office of the Comptroller of the Currency, and the deal has been closed.

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