Mitsubish UFJ Finanicial Group (MUFG), a Japanese bank holding and financial services company, has invested $200 million in Akulaku, an Indonesia-based banking and digital finance platform. Akulaku is the business name of Silvrr Technology Co Limited.

MUFG said the goal of the investment is to boost its customer base in the Southeast Asian region. For Akulalu, the new investment is an addition to the $100 million funding it received earlier in February from Siam Commercial Bank PLC, a leading commercial bank in Thailand.

Akulaku in a statement released on Monday explained that the funding would help give life to its mission of providing banking services to underserved markets in the region.

“The Company’s [Akulaku’s] future growth plans align with MUFG’s, and the companies’ joint expansion into new territories, markets, and products will accelerate heading into 2023,” the Indonesian fintech firm noted.

MUFG and Akulaku Plans New Partnership

As part of the investment, Akulaku disclosed that it has entered into an agreement with MUFG to work with the latter’s companies across Southeast Asia. Areas of collaboration under the framework include product development, distribution, financing, and technology.

“Akulaku’s strong technological capabilities in credit, risk management, mobile banking, and customer acquisition will bring solid value to this partnership,” the fintech firm explained, adding that both firms will enjoy shared skills and knowledge.

“Southeast Asia is key and a second home market to MUFG. Our investment in Akulaku will further solidify our commitment in this region to meet the growing financial needs of underserved customers,” Kenichi Yamato, Managing Executive Officer and Chief Executive of the Global Commercial Banking Business Unit at MUFG Bank, explained.

Meanwhile, in February, MUFG shut down the Global Open Network Japan, a blockchain-based online payments venture it developed in partnership with Akamai Technologies. The firm cited tough conditions in the payments industry for the action. MUFG first announced plans to develop a blockchain payments network in early 2019.

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