Japanese financial services conglomerate Rakuten Group has announced plans to consolidate its various fintech divisions into a single unit.
Rakuten Group and Rakuten Bank have signed a memorandum of understanding to initiate discussions regarding the integration of several groups, including Rakuten Bank, Rakuten Card Company, Rakuten Securities, and Rakuten Insurance Holdings.
According to a company statement, this reorganization aims to enhance collaboration within the group and with other fintech companies while streamlining the customer acquisition process.
This announcement follows losses recorded by the Rakuten Group, though these losses have decreased by more than a third (35.8%) year-on-year, attributed to an addition of 1.5 million subscribers. Nonetheless, the parent group still reported a net loss of JPY 339.4 billion in 2023, marking its second-largest annual loss.
The decision to consolidate comes in response to shifting market conditions. “Given the changes in the business environment, it has been deemed appropriate to initiate discussion on the Reorganization,” said the Rakuten Group.
The consolidation is expected to take effect in October.