Rakuten Group and Rakuten Group Sign MOU to Consolidate Financial Units
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Rakuten, one of the largest financial conglomerates in Japan, has announced plans to consolidate its fintech operations into a single and consolidated platform.
The plan announced by Rakuten seeks to boost synergy while also streamlining the efforts of acquiring new customers offering different financial services.
Rakuten is Consolidating Financial Units
Rakuten Group and Rakuten Bank have signed a Memorandum of Understanding, with plans to commence discussions about the potential reorganization of the company. The consolidated units include Rakuten Bank, Rakuten Card, Rakuten Securities Holdings, and Rakuten Insurance Holdings.
The reorganization of the company seeks to foster collaboration in the fintech industry. It will also give customers access to innovative financial services that they can use for a seamless experience.
Rakuten is working on this reorganization plan as part of a future strategy. The company is working on areas such as optimal resource allocation while optimizing the structure of the group.
In the MOU, Rakuten Group further noted that the changes in the business environment had demanded more discussions into the reorganization of the company.
Rakuten Bank’s Reorganization Efforts
Rakuten Bank has been working towards being a leading fintech firm. The company seeks to streamline its services and accommodate the changing needs of customers in an era that no longer requires cash transactions. The firm views the reorganization as a way of working with other firms offering fintech services.
The reorganization will also grow the Fintech Business ecosystem to give it a competitive edge. It also plans to foster the growth of the Rakuten ecosystem to bring more value to the Rakuten Group.
Rakuten Group is yet to implement this reorganization plan as it is still under consideration. The plan might also be subject to change depending on any future discussions that might be held. Approval from regulators is also needed for the reorganization plan to be implemented.
Rakuten Bank has also created an independent Special Committee. This committee will comprise outside directors and a board of supervisors. The committee and the board will work together to bring fairness to the reorganization plan.
The Board of Directors at Rakuten will be bound to abide by the opinions of the Special Committee in making decisions related to the reorganization. The company is expected to finalize the consolidation of the respective units by October 2024.
Regulatory approval is also needed for the reorganization plan to be deemed effective. Rakuten Group will work alongside Rakuten Bank to discuss and evaluate the reorganization plan and assess whether it will support sustainable growth at the company while bringing more value to the two companies.
Besides the reorganization, Rakuten has also been pursuing growth for its different units. Rakuten Securities teamed up with TipRanks to allow retail clients to access analytical tools that will help them manage their investments in the stock market.
