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 (CEO: Masayuki Hosaka, hereinafter “Rakuten Card”), a consolidated subsidiary of the Company, has withdrawn its application for deposit insurance, which was submitted to the Federal Deposit Insurance Corporation (FDIC) with the aim of offering financial services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.