Rakuten Group, Inc. (Headquarters: Setagaya-ku, Tokyo, Representative Director, Chairman and President: Hiroshi Mikitani, hereinafter the “Company”) announces that Rakuten Card Co., Ltd. (Headquarters: Minato-ku, Tokyo, CEO: Masayuki Hosaka, hereinafter "Rakuten Card") a consolidated subsidiary of the Company, resolved today to dissolve two second-tier subsidiaries established for the purpose of starting banking operations in the United States of America (hereinafter the "United States").
In addition, prior to this dissolution, we had already withdrawn our application, etc., for a banking business license in the United States.
As announced on July 26, 2019, Rakuten Bank America (hereinafter “RBA”) and Rakuten Card USA, Inc. (hereinafter “Rakuten Card USA”), which are two consolidated second-tier subsidiaries of the Company, aimed to provide banking services throughout the United States by establishing an Industrial Bank in the State of Utah, pending approval from authorities, to further strengthen our ecosystem in the United States.
On the other hand, we have been furthering efforts to select and concentrate businesses in order to improve profitability throughout the Rakuten Group as a whole. As part of this process, we decided that obtaining approvals, etc., from the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) would take longer than anticipated in our business plan. As a result, we withdrew our application for approval, etc., and made the decision to dissolve and liquidate the two companies we established as operating entities to conduct banking operations in the United States. While this requires a thorough review of our banking and credit card business strategies in the United States, the Rakuten Group as a whole is committed to continuing to grow our businesses strategically in the country, centered on our consumer rewards platform Rakuten Rewards. We will continue to concentrate on our credit card businesses in Japan and Taiwan to support the further expansion of the Rakuten Ecosystem in these markets.