Japanese financial group Rakuten has announced a strategic plan to consolidate its financial technology businesses into a cohesive single unit. This move enhances synergies and streamlines customer acquisition efforts across various financial services.

Reports indicate that Rakuten Group Corporation and Rakuten Bank, Ltd. have signed a Memorandum of Understanding (MOU) to discuss the potential restructuring of Rakuten's financial technology business, including Rakuten Bank, Rakuten Card Co., Ltd., Rakuten Securities Holdings Co., Ltd., and Rakuten Insurance Holdings, Inc. The restructuring aims to strengthen collaboration within the financial technology business and deliver innovative financial services to customers.

Rakuten Bank has been committed to becoming a leading financial technology company in the "cashless era" and views the restructuring as an opportunity to deepen collaboration with other companies in the financial technology sector.

The restructuring is expected to further expand the financial technology business ecosystem and enhance its competitive advantage. This will contribute to the overall development of the Rakuten ecosystem and increase the corporate value of the Rakuten Group. However, the restructuring framework is still under consideration and may be subject to changes based on future discussions and regulatory approvals.

Rakuten Bank has established an independent special committee composed of external directors and audit committee members to ensure fairness throughout the restructuring process. The board of directors intends to respect the views of the special committee in any decisions related to the restructuring.

The restructuring is expected to take effect in October 2024, subject to necessary approvals and permits from regulatory authorities. Rakuten Group and Rakuten Bank will continue discussions and evaluations regarding the restructuring, considering its potential contribution to further sustainable growth and enhancing the corporate value of both companies.

Rakuten Securities recently announced a partnership with TipRanks to provide advanced stock market investment analysis tools to retail customers. This alliance offers Japanese investors a pathway to access advanced data-driven insights, effectively navigating global stock markets.