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.

Rakuten Announces Reorganization of its Fintech Business

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 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.