Rakuten to Consolidate Fintech Units, Enhancing Customer Acquisition

The
Japanese Financial conglomerate Rakuten announced on Monday its strategic plan
to consolidate its fintech operations into a single, cohesive unit. The move enhances
synergy and streamlines customer acquisition efforts across various financial
services.

According
to today’s press release, Rakuten Group, Inc. and Rakuten Bank, Ltd. have
signed a Memorandum of Understanding (MOU ) to initiate discussions on the
potential reorganization of Rakuten’s Fintech Business, which includes Rakuten
Bank, Rakuten Card Co., Ltd., Rakuten Securities Holdings Co., Ltd., and
Rakuten Insurance Holdings Co., Ltd.

The
reorganization aims to enhance collaboration across the Fintech Business and
provide innovative financial services to customers.

The
decision to explore this reorganization comes as Rakuten Group continues to
consider its future strategies, optimal resource allocation, and optimization
of the group structure.

“Given the changes in the business
environment, it has been deemed appropriate to initiate discussion on the
Reorganization,” stated Rakuten Group in the MOU.

Rakuten Group announces plan to integrate bank, fintech units https://t.co/civviQMAUY pic.twitter.com/nFJqQpN57P

— Reuters (@Reuters) April 1, 2024

Rakuten
Bank, which has been working towards becoming a leading fintech company in the
age of zero cash, sees the reorganization as an opportunity to achieve deeper
collaboration with other companies in the Fintech Business.

The
reorganization is expected to expand the Fintech Business ecosystem further and
improve its competitive advantage. It will contribute to the growth of the
entire Rakuten Ecosystem and enhance Rakuten Group’s enterprise value.

However, the reorganization structure is still
under consideration and may be subject to change based on future discussions
and regulatory approval.

Rakuten
Bank has established an independent Special Committee consisting of outside
directors and audit and supervisory board members to ensure fairness in the
reorganization process. The Board of Directors intends to respect the Special
Committee’s opinion in any decision-making related to the reorganization.

The
reorganization is expected to take effect in October 2024, pending regulatory
authorities’ necessary approvals and licenses. Rakuten Group and Rakuten Bank
will continue to discuss and evaluate the reorganization, considering whether
it will contribute to further sustainable growth and enhance the enterprise
value of both companies.

Rakuten Securities recently announced a partnership with TipRanks to offer retail clients advanced analytical tools for stock market investment. This alliance provides Japanese investors with access to sophisticated, data-driven insights for effectively navigating global stock markets.

The
Japanese Financial conglomerate Rakuten announced on Monday its strategic plan
to consolidate its fintech operations into a single, cohesive unit. The move enhances
synergy and streamlines customer acquisition efforts across various financial
services.

According
to today’s press release, Rakuten Group, Inc. and Rakuten Bank, Ltd. have
signed a Memorandum of Understanding (MOU ) to initiate discussions on the
potential reorganization of Rakuten’s Fintech Business, which includes Rakuten
Bank, Rakuten Card Co., Ltd., Rakuten Securities Holdings Co., Ltd., and
Rakuten Insurance Holdings Co., Ltd.

The
reorganization aims to enhance collaboration across the Fintech Business and
provide innovative financial services to customers.

The
decision to explore this reorganization comes as Rakuten Group continues to
consider its future strategies, optimal resource allocation, and optimization
of the group structure.

“Given the changes in the business
environment, it has been deemed appropriate to initiate discussion on the
Reorganization,” stated Rakuten Group in the MOU.

Rakuten Group announces plan to integrate bank, fintech units https://t.co/civviQMAUY pic.twitter.com/nFJqQpN57P

— Reuters (@Reuters) April 1, 2024

Rakuten
Bank, which has been working towards becoming a leading fintech company in the
age of zero cash, sees the reorganization as an opportunity to achieve deeper
collaboration with other companies in the Fintech Business.

The
reorganization is expected to expand the Fintech Business ecosystem further and
improve its competitive advantage. It will contribute to the growth of the
entire Rakuten Ecosystem and enhance Rakuten Group’s enterprise value.

However, the reorganization structure is still
under consideration and may be subject to change based on future discussions
and regulatory approval.

Rakuten
Bank has established an independent Special Committee consisting of outside
directors and audit and supervisory board members to ensure fairness in the
reorganization process. The Board of Directors intends to respect the Special
Committee’s opinion in any decision-making related to the reorganization.

The
reorganization is expected to take effect in October 2024, pending regulatory
authorities’ necessary approvals and licenses. Rakuten Group and Rakuten Bank
will continue to discuss and evaluate the reorganization, considering whether
it will contribute to further sustainable growth and enhance the enterprise
value of both companies.

Rakuten Securities recently announced a partnership with TipRanks to offer retail clients advanced analytical tools for stock market investment. This alliance provides Japanese investors with access to sophisticated, data-driven insights for effectively navigating global stock markets.