Rakuten’s Taiwanese banking JV receives all approvals to start operations

Maria Nikolova

Rakuten Bank and Rakuten Card applied for and received the necessary approvals to operate an online banking business with IBF.

Rakuten Inc (TYO:4755) has earlier today published a notice regarding securing all necessary approvals to start banking operations in Taiwan. Rakuten Bank, Ltd. and Rakuten Card Co., Ltd., subsidiaries of Rakuten Inc, in collaboration with IBF Financial Holdings Co., Ltd. (hereinafter “IBF”), have received the necessary permissions so that the business may start operations.

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.

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. The target is to start providing banking services within fiscal year 2020.

At present, the potential impact on Rakuten Group consolidated financial performance is expected to be limited.

Let’s note that Rakuten is also planning to set up banking operations in the United States via Rakuten Card. The new entity will be named Rakuten Bank America and its business activities will include credit card issuing and acquiring, personal loans, business loans and deposits. The initial capital will be US$ 400 million.

Read this next

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

Digital Assets

Zodia Custody and SBI Digital Asset Holdings launch JV for crypto asset custodian in Japan

“Zodia Custody is both proud and excited to be working with SBI DAH to help set up SBI Zodia Custody; the first tier 1 crypto asset custodian for institutions in Japan.”

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

<