Japanese financial services conglomerate has announced plans to consolidate its various fintech divisions into a single unit.
The Rakuten Group and Rakuten Bank have signed an MoU to start talks about consolidating the various different groups which include the listed Rakuten Bank as well as Rakuten Card Company, Rakuten Securities and Rakuten Insurance Holdings.
According to a company statement, the reorganisation is designed to enhance collaboration across the group and with other fintechs as well as streamlining the customer acquisition process.
The announcement comes on the back of losses for the Rakuten Group, however these losses have reduced by more than a third (35.8%) year-on-year thanks to the addition of 1.5 million subscribers.
However, the parent group suffered JPY 339.4 billion, which amounts to its second-largest loss ever recorded.
Its parent booked a net loss of JPY339.4 billion in 2023, its second-largest annual loss.
The move has also been sparked by current market conditions. "Given the changes in the business environment, it has been deemed appropriate to initiate discussion on the Reorganization," stated the Rakuten Group.
The consolidation is expected to take place in October.