Rakuten Group announces consolidation of fintech operations

Monday 1 April 2024 11:42 CET | News

Rakuten Group has unveiled its plans to consolidate its fintech operations into a unified group in a bid to expand its customer base across various sectors.


These sectors include online banking, credit cards, securities, and insurance. The integration initiative, which is scheduled to commence in October 2024, follows a memorandum of understanding signed between Rakuten Group and Rakuten Bank. Both entities confirmed that Rakuten Bank will maintain its listing on the Tokyo Stock Exchange post-integration. The decision to streamline its fintech businesses comes amidst financial challenges faced by Rakuten Group, primarily caused by its venture into the mobile carrier sector in 2020, which resulted in 14 consecutive quarters of operating losses according to Reuters. 

In a bid to improve its financial standing, Rakuten has pursued various strategies such as equity and debt issuances and asset divestitures. It's also worth noting that Rakuten Bank was listed in April 2023, while plans to list its securities arm were delayed in November of the same year. Instead, Rakuten opted to sell a 30% stake in the securities division to Mizuho Financial Group. Reuters further reports that, as part of the reorganisation, Rakuten is contemplating abandoning the listing plans for Rakuten Securities.


Rakuten Group has unveiled its plans to consolidate its fintech operations into a unified group in a bid to expand its customer base across various sectors.


More background information about the reorganisation 

Rakuten Bank is looking to expand its customer base and revenue streams while leveraging the Rakuten Ecosystem to efficiently acquire new customers and collaborate with other group companies. The bank's strategic goals include becoming a leading fintech company, offering banking services designed for individual and corporate customers' needs, and providing convenient, technology-driven solutions. 

As part of its growth strategy, Rakuten Bank is considering a reorganisation to support closer collaboration with other fintech companies within the group. For individual customers, the reorganisation aims to provide comprehensive financial services aligned with customers' lifecycle stages, while for corporate customers, it aims to enhance the penetration of Rakuten Bank's services within the fintech field's corporate customer base. 

Both Rakuten Group and Rakuten Bank will evaluate the proposed reorganisation to ensure it aligns with their objectives of sustainable growth and enhanced enterprise value. Discussions will continue to refine the strategy and assess its potential impact on the overall business ecosystem.

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Keywords: fintech, merger, expansion, banking
Categories: Banking & Fintech
Companies: Rakuten
Countries: Japan
This article is part of category

Banking & Fintech


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