MUFG Bank will form a capital and business alliance with Singapore-based ride-hailing service Grab, with the view to collaborating on retail financial services, sources have said.

The major Japanese bank, together with its group companies, will invest up to ¥80 billion (about $720 million) in Grab, according to the sources.

The partnership comes as MUFG Bank is working to strengthen its Southeast Asian operations.

Grab’s app, offered in Southeast Asia, allows users to order delivery meals and make hotel reservations and payments, in addition to sharing rides and hailing taxis.

MUFG Bank aims to leverage the partnership with Grab to extend its reach to customers to include those who are strangers to traditional banks.

The Japanese bank also hopes to build on Grab’s competitive edge in the field of data analysis at a time when competition is intensifying in the data business.

The bank will provide Grab with know-how in the financial sector, including on assessing customers’ loan repayment capacities, collecting loans and negotiating with financial authorities, the sources said.

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