Rakuten withdraws application for deposit insurance in the United States

Maria Nikolova

The company plans to refile an updated application in the coming months.

Rakuten Inc (TYO:4755) today announces that Rakuten Bank America, a subsidiary of Rakuten Card Co., Ltd. has withdrawn its application for deposit insurance. The application was submitted to the Federal Deposit Insurance Corporation (FDIC) so that the company could offer financial services products in the United States.

Rakuten notes that it intends to submit an updated application in the coming months. Withdrawing the application at this time gives the company an chance to incorporate feedback received from the FDIC, which will enhance and strengthen certain areas of the application. Rakuten says it will continue to work constructively with the FDIC and the State of Utah to move forward with its applications.

Rakuten Bank America filed an application with the Utah Department of Financial Institutions (UDFI) for an Industrial Bank Charter, and an application with the FDIC for deposit insurance last year. The application for a Utah State Industrial Bank Charter, filed with the State of Utah Department of Financial Institutions will remain active.

Rakuten Card and its subsidiary Rakuten Bank America are committed to transparency with Rakuten’s constituents, and partnership in the regulatory review process.

As FinanceFeeds reported in July 2019, Rakuten Card Co., Ltd., a subsidiary of Rakuten Inc, announced its plans to establish a company to conduct banking operations in the United States.

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