Asia: Japan’s biggest bank to expand its wealth business

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank is planning to push wealth management as one of its key revenue drivers.

Due to slim profit margins from the traditional lending business in Japan, the bank plans to target customers with an asset under management value of at least 300 million Yen.

Saburo Araki, the CEO of MUFG’s brokerage arm Mitsubishi UFJ Morgan Stanley Securities Co Ltd (MUMSS) was quoted saying MUFG was, “consulting with Morgan Stanley’s wealth management people about various aspects including product line-up”.

Since a high percentage of the affluent in Japan have cited wanting to have access to better wealth management products and services as a key driver in considering switching their main banks, it is becoming increasingly important for banks such as MUFG to retain and grow their affluent customer base.

Therefore, MUFG is targeting to tap on Morgan Stanley’s large client pool that has at least 1.2 million individuals classified as wealthy and is looking to entice these customers through higher profit yielding products such as mutual funds.

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