March 23, 2020

Notice Regarding Withdrawal of Application for Deposit Insurance in the United States and Intention to Refile the Application


Rakuten, Inc. (Chairman and CEO: Hiroshi Mikitani, hereinafter “the Company”) announced today that Rakuten Bank America, a subsidiary of Rakuten Card Co., Ltd. (CEO: Masayuki Hosaka, hereinafter “Rakuten Card”), a consolidated subsidiary of the Company, has withdrawn its application for deposit insurance, which was submitted to the Federal Deposit Insurance Corporation (FDIC) with the aim of offering financial services products in the United States, and intends to refile an updated application in the coming months.

Withdrawing the application at this time gives Rakuten an opportunity to incorporate feedback received from the FDIC, which will enhance and strengthen certain areas of the application. Rakuten will continue to work constructively with the FDIC and the State of Utah to move forward with our applications. 

Rakuten Bank America filed an application with the Utah Department of Financial Institutions (UDFI) for an Industrial Bank Charter, and an application with the FDIC for deposit insurance last year. The application for a Utah State Industrial Bank Charter, filed with the State of Utah Department of Financial Institutions will remain active. 

Rakuten Card and its subsidiary Rakuten Bank America are committed to transparency with our constituents, and partnership in the regulatory review process.

The following is an outline of the newly established company, Rakuten Bank America, in “Announcement for Resolution to Establish a Company for Banking Operations in the United States” which was announced on July 26, 2019.

Overview of Rakuten Bank America

(1) Company name

Rakuten Bank America

(2) Chief Executive Officer

Lee A Carter

(3) Description of Business

Credit card issuing and acquiring, Personal loans, Merchant loans and deposits

(4) Capital

USD50 million (as of December 31, 2019)

(5) Date of establishment

July 31, 2019

(6) Fiscal year

End of December

(7) Net assets

USD47.6 million (as of December 31, 2019)

(8) Total assets

USD48.4 million (as of December 31, 2019)

(9) Ownership

Rakuten Card 100%

At present, the potential impact on the Company’s consolidated financial performance is expected to be small, however we will promptly announce any matters that require disclosure in the future.

*Please note that the information contained in press releases is current as of the date of release.

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