Rakuten completes registration of banking JV in Taiwan
Rakuten International Commercial Bank will have its head office in Taipei and will provide electronic banking services.
Rakuten Inc (TYO:4755) has published a notice regarding the progress of setting up its Taiwanese banking business.
On May 18, 2020, Rakuten Bank, Ltd. and Rakuten Card Co., Ltd., wholly owned subsidiaries of Rakuten Inc, with IBF Financial Holdings Co., Ltd., completed the registration to establish a joint venture in Taiwan.
The new venture is named Rakuten International Commercial Bank Co., Ltd. Rakuten Bank will hold a 50% stake in the business, Rakuten Card will hold 1%, whereas IBF will have a 49% stake. The capital is TWD 10 billion. The company will provide electronic banking services.
As FinanceFeeds has reported, Rakuten received the necessary approvals to start its Taiwanese banking operations in July 2019.
Since the launch of an E-Commerce service in 2008, Taiwan Rakuten has expanded its business into areas such as credit cards, travel, flea market app, and e-books. Taiwan Rakuten has formed a strong ecosystem centered around the E-Commerce and credit card businesses, making it one of the most important regions within our overseas business.
In order to further strengthen the ecosystem within Taiwan, Rakuten Bank and Rakuten Card applied for and received the necessary approvals to operate an online banking business with IBF, which had already been considering to enter the banking business.
At present, the potential impact on Rakuten Group consolidated financial performance is expected to be limited.
