Mitsubishi UFJ Financial Group, Inc(MUFG) and Grab Holdings Inc.(Grab) announced an agreement under which MUFG will invest up to US$706 million into Grab to jointly develop next generation bespoke financial services in Southeast Asia to boost financial inclusion in the region.

Under the partnership with MUFG, Grab will confer "First Choice Bank" status to MUFG and its partner banks in the region. Together, both companies will co-develop innovative financial products and services based on our combined customer insights to better cater to the financial needs of Grab's users, driver-partners and merchant-partners.

"MUFG's investment into Grab is a vote of confidence in our super app strategy and our ability to build a long-term, sustainable business. Together with MUFG, we look forward to playing a key role in driving financial inclusion in Southeast Asia and offering greater and affordable access to financial products and services to millions of customers across the region." said Ming Maa, president at Grab

"MUFG has been developing business in Southeast Asia by building a platform centered on our partner banks. We are excited to be able to provide customers with next-generation financial services by combining Grab's advanced technologies and data management expertise with our financial knowledge and know-how. We believe that this alliance will also generate additional momentum for our ongoing digital transformation of MUFG." said Hironori Kamezawa, Deputy President, Group COO & Group CDTO at MUFG

MUFG's investment comes off the back of Grab's rapid growth in 2019 where the company established itself as the leading ride-hailing, food delivery and digital payments provider in Southeast Asia.

Grab will use the fresh funding to power the growth of financial services adoption in the region, by creating innovative lending, insurance and wealth management products and solutions for Southeast Asian consumers and small and medium-sized enterprises(SMEs), delivered through digital channels.

MUFG has acquired strategic equity stakes in its partner banks, further augmenting its network across the region. MUFG intends to harness the partnership to further capture business opportunities in the region, leveraging its regional network including its unique partner bank relationships in Southeast Asia.

In recent years, Grab has partnered with leaders such as Mastercard, Credit Saison, Chubb, and ZhongAn Online P&C Insurance Co. Ltd., which have fueled the growth of the Grab Financial Group ecosystem in Southeast Asia, allowing it to scale at speed and bring even more financial services to users.