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MUFG to Launch Wealth Management Digital Platform in 2Q21

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Augmenting its wealth management capabilities, Mitsubishi UFJ Financial Group, Inc. MUFG, also known as MUFG, has announced the development of the MUFG Wealth Management Digital Platform. The platform will be deployed in the second half of fiscal 2021 to provide optimal solutions to high net-worth clients.

It is a cross-firm common platform that will be rolled out at MUFG's consolidated subsidiaries — MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation (or the Trust Bank) and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”).

The bank and its subsidiaries have collaborated for “MUFG Wealth Management” to provide premium wealth-management services across its footprint to cater to customers in achieving real wealth at different stages of their lives.

To achieve this, the newly-developed digital platform will rely on the company’s comprehensive strengths and use its total assets to comprehend life goals and suggest favorable solutions such as asset succession, business succession and asset management in line with these needs.

This will be done through the platform’s three functions, holistic view, next best action (NBA), and goal planning system (GPS). The holistic view will display overview information of customers and advisors of MUFG Bank, the Trust Bank and MUMSS, thereby, improving MUFG's integrated operations.

NBA will deploy analytical models to recommend portfolio management actions to be undertaken in accordance with the customer's situation. This will support the sales activities of advisors. GPS will facilitate a more comprehensive suggestion related to portfolio management, asset succession scenarios like inheritance tax estimation, and business succession concerns like the valuation of company stock.

GPS will also be used as a tool for visualizing customers’ balance sheets and simulating solutions to matters related to customers’ total assets, in line with goals and cash flow per life plans.

The new platform will enhance the company’s wealth management business scale and is in line with its medium-term business plan to strengthen profitability in its wealth management business.

Recently, MUFG and U.S. Bancorp USB entered a definitive agreement, per which the latter will acquire MUFG Union Bank’s core retail banking operations for a cash-and-stock transaction valued at $8 billion. This includes $5.5 billion in cash and 44 million shares of U.S. Bancorp. This will lead to MUFG getting a 2.9% stake in U.S. Bancorp. Apart from the deal value, the Japan-based parent will get dividends or share repurchases worth $9.6 billion at MUFG Union Bank, bringing the total value of the transaction to $17.6 billion.

The transaction, nonetheless, does not include the purchase of MUFG Union Bank’s Global Corporate & Investment Bank, certain middle and back-office functions, and other assets.The deal’s closure is expected in the first half of 2022.

Over the past six months, shares of the company have gained 7.7% on the NYSE, outperforming 2.7% growth recorded by the industry.

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Zacks Investment Research

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Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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