Japan's MUFG looks online to boost Africa, Middle East networks

By Takashi Umekawa and Takaya Yamaguchi
TOKYO, Sept 12 (Reuters) - MUFG Bank Ltd 8306.T plans to
roll out an online platform to help clients find business
partners in countries outside of Asia where it does not have a
strong network, an official with Japan's largest lender said.
The MUFG Trade Club, to be introduced this month, will link
MUFG clients into a broader network of 13 other banks including
Spain's Santander SAN.MC and South Africa's Standard Bank
SBKJ.J , the official said, who declined to be identified, as
the information has not been made public yet.
The move represents an acknowledgment by MUFG Bank that it
hasn't met the needs of Japanese clients looking to expand into
Africa, the Middle East, and parts of Europe where it does not
have a strong presence or local partner, the official told
Reuters this week.
MUFG Bank is the lending arm of Mitsubishi UFJ Financial
Group, one of the world's largest banks by assets.
"There are clients who want to sell their products such as
cosmetics, accessories, and Japanese sake, into non-Asian
countries," the official said.
Japan's big banks have typically followed the lead of their
large clients in moving abroad. MUFG has a presence in the
United States, the United Kingdom and elsewhere, including a
wide network in Asia.
It has stakes in PT Bank Danamon Indonesia Tbk BDMN.JK ,
Thailand's Bank of Ayudhya Pcl BAY.BK , Security Bank Corp
SECB.PS of the Philippines, and Vietnam-based VietinBank. The
ties reflect Japan's status as a top exporter to those
countries, accounting for $83 billion in exports in 2018,
according to IMF trade data.
By contrast, Japanese companies and banks have lagged behind
Chinese rivals in other emerging markets, particularly in
sub-Saharan Africa. Standard Bank, Africa's largest lender by
assets, is 20% owned by Industrial and Commercial Bank of China
601398.SS
While the new service will be provided for free, MUFG is
betting it will mean new business if clients need foreign
exchange transactions or capital investment.
It aims to have at least 300 clients registered on the
platform, the official said.