BTMU (Bank of Toyko-Mitsubishi), a subsidiary of the Mitsubishi UFJ Financial Group, Inc. (MUFG), announced it will rename its U.S. financial holding company subsidiary, UnionBanCal Corporation, and its U.S. national Bank, Union Bank, N.A.
The name change is not going to harm your finances, but what exactly does it mean? What is the point of the changes in general? If you are worried about what is going to happen to your money then you need to take some time to figure out how this merger is going to work.
What changes will take place with Union Bank?
As of July 1, 2014, BTMU’s Americas banking operation will be integrated and operated under a single management structure. This means Union Bank, N.A. will be integrated into MUFG Union Bank, N.A. Additionally, the U.S. financial holding company, UnionBanCal Corporation, will be renamed “MUFG Americas Holdings Corporation,” and it will supervise BTMU’s Americas banking operation, which consists of Union Bank, N.A., BTMU branches in the U.S. and BTMU branches and subsidiaries in Latin America and Canada.
The corporate headquarters for MUFG Americas Holdings Corporation and MUFG Union Bank, N.A. will be located in New York City. Their current sales organization covering both the West and East Coasts in the U.S. are expected to remain in their locations for further development. You can expect the Los Angeles, New York, and Chicago branches of BTMU to also remain fully operational in order to provide full customer service.
To clarify, there are two name changes to take note of. The first will be the name change of MUFG Americas Holdings Corporation to MUFG Union Bank, N.A.
The second name change that will take place will be UnionBanCal Corporation to Union Bank, N.A.
The President and CEO, Masashi Oka, will remain in his current position through the transition.
According to Business Wire, there are no direct capital ties between MUFG Americas Holdings Corporation or any BTM U.S. branches, Canada and Latin America branches or subsidiaries. Instead, MUFG Americas Holdings Corporation will manage the branches and subsidiaries via management service agreements.
Why the change?
The first reason was to use the MUFG brand, which is a globally recognized brand, to help identify membership with the organization. Secondly, by combining both the MUFG global brand with Union Bank, a name recognized in the U.S., the organization can appeal to two types of customers.
The MUFG brand is aimed at attracting corporate banking customers, while the Union Bank brand will be used more for attracting both commercial and retail banking customers.