Rakuten Group intends to merge banks and fintech businesses

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Rakuten Group intends to merge banks and fintech businesses
Rakuten Group intends to merge banks and fintech businesses

Rakuten Group has announced its intentions to integrate its fintech businesses into a single body, with the purpose of boosting collaboration and client acquisition in industries ranging from online banking and credit cards to stocks and insurance.

Rakuten Group (4755.T) announced plans on Monday to merge its fintech businesses into a single entity, with the goal of improving collaboration and client acquisition across fields ranging from online banking and credit cards to stocks and insurance.

Rakuten Group and Rakuten Bank (5838.T) have signed a memorandum of understanding on the reorganization, which is slated to take effect in October, according to the firms’ announcements.

Rakuten Bank would remain listed on the Tokyo bourse following the transaction, they noted.

The parent’s finances, which are based on e-commerce platform Rakuten Ichiba, have struggled since the 2020 launch of a mobile carrier, which resulted in 14 consecutive quarters of operating losses.

To produce funds, Rakuten has issued shares and debt, as well as sold assets, such as Rakuten Bank, which will be listed in April 2023.

It also applied to float its securities business in July 2023, but that was delayed until November, when Rakuten sold a 30% share in the company to Mizuho Financial Group (8411.T).

Following the reorganization, Rakuten will consider scrapping plans to float Rakuten Securities.

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