Rakuten Group aims to integrate bank, fintech units (updated)

Rakuten Bank

01/04/2024 05:38

(Adds details; paragraphs 1, 3-7)
       TOKYO, April 1 (Reuters) - Rakuten Group  4755.T  plans
to integrate its fintech businesses into one group, it said on
Monday, aiming to strengthen collaboration and customer
acquisition across areas from online banking and credit cards to
securities and insurance.
    Rakuten Group and Rakuten Bank  5838.T  entered into a
memorandum of understanding on the re-organisation, which is set
to take effect in October, the companies said in statements.
    Rakuten Bank would continue to be listed on the Tokyo
exchange after the integration, they added.
    The finances of the parent, centred on e-commerce platform
Rakuten Ichiba, have suffered since its 2020 launch of a mobile
carrier that led to 14 straight quarters of operating losses.
    To generate cash Rakuten has issued equity and debt and sold
off assets, for example by listing Rakuten Bank in April 2023.
    It also applied to list its securities arm in July 2023 but
that was delayed the following November, with Rakuten instead
selling a 30% stake in the company to Mizuho Financial Group
 8411.T .
    Rakuten will consider dropping plans to list Rakuten
Securities following the re-organisation, the group said.

 (Reporting by Rocky Swift and Anton Bridge; Editing by
Jacqueline Wong)
 ((rocky.swift@thomsonreuters.com;))