MUFG to boost hiring in Japan’s wealth management sector- report
Japanese financial group Mitsubishi UFJ Financial Group (MUFG) is planning to increase its recruitment efforts in the country’s wealth management sector by hiring around 40 new graduates annually from April next year.
Bloombergreported the plan, quoting MUFG’s commercial banking and wealth management division leader Yutaka Miyashita.
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This initiative aligns with the bank’s strategic focus on the wealth management sector, which the company considers crucial for generating stable fee income.
The bank is targeting clients with assets of at least Y300m ($2m), said the publication. It estimates that 300,000 of its account holders meet the criteria for wealth management services.
Currently, MUFG’s wealth operations employ around 4,000 individuals.
In an interview, Yutaka told Bloomberg: “Simply put, we are rather short of hands. The market value of our clients’ assets has been expanding in line with global macroeconomic trends. This is a growing market.”
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By GlobalDataHe further added that MUFG is receiving wealth management expertise from Morgan Stanley by sending trainees to New York for hands-on experience.
The decision to bolster recruitment comes as Japan’s stock market and real estate prices have increased, resulting in a rise in wealthy clients, said the report.
MUFG aims to shift towards a fee-based model, reducing reliance on transaction frequency and instead focusing on increasing clients’ assets under management.
In addition, MUFG is also focusing on estate planning for ageing business owners and identifying startup founders as potential clients.
Recently, MUFG also announced that it is establishing an equity fund to invest in middle and later-stage startups in Japan.
The fund aims to address the lack of large-scale patient capital available to Japanese growth companies.
The nearly Y50bn fund is expected to be launched in this financial year.
Earlier this year, MUFG and Mizuho were reported to be planning to expand their global footprint through acquisitions and partnerships with overseas money managers.
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