Mitsubishi UFJ Financial Group, Inc. (MUFG) has announced a “functional realignment” of its group subsidiaries. The realignment includes a name change from The Bank of Tokyo-Mitsubishi UFJ, Ltd to MUFG Bank, Ltd. (subject to regulatory approval). The company said they had two aims: adapting to domestic and global structural changes and of providing value to customers’ diversifying and increasingly sophisticated needs. The company specifically mentioned a need to adapt to low domestic interest rate situations, rising global protectionism, greater geopolitical risks and emerging Fintech.
MUFG says it will further strengthen functional operations on a group basis so that each business subsidiary can focus on its respective areas of expertise and seamlessly provide truly “integrated financial services,” the strength of MUFG. For the large-sized corporate segment, MUFG will develop a structure to accumulate industry knowledge and provide optimal solutions across entities and regional boundaries on a group basis. For the wealth management segment, MUFG will develop a solution model tailored to each customer’s needs and create a uniform “wealth management brand” for MUFG.
MUFG states that each of its subsidiaries will benefit from lower cost operations and will strengthen their management base not only through enhanced efficiency on a standalone basis, but also through efficient use of management resources across the group and a reduction in duplication and streamlining of the group-wide platform, including corporate center functions, operational processes, and information and technology systems.