Rakuten Bank

Basic Information

Stock Code
5838
Industry
Banking
Category Detail
Banks
Prefecture
Tokyo
Establishment Year
January 2000
Listing Year
April 2023
Official Website
https://www.rakuten-bank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Rakuten Group, GMO Internet, SBI Sumishin Net Bank, Seven Bank

Overview

Rakuten Bank is a subsidiary of Rakuten Group founded in 2000, operating as one of Japan's largest online banks providing internet-only banking services.

Current Situation

Rakuten Bank recorded consolidated revenue of approximately 138 billion yen, ordinary income of approximately 48.4 billion yen, and net income of approximately 34.4 billion yen for the fiscal year ending March 2024, establishing itself as a leading company in the online banking industry. It has 15.23 million accounts and deposit balances exceeding 10.5402 trillion yen, boasting top-class scale. While focused on individual customers, it also offers personal business and corporate accounts. It achieves high convenience through partnerships with various ATMs and smartphone app services. Leveraging synergies within the Rakuten Group, it provides linked services with Rakuten Ichiba and Rakuten Securities. Aiming for sustainable growth, it focuses on introducing the latest fintech and diversifying financial products. It listed on the Tokyo Stock Exchange Prime Market in April 2023, strengthening its fundraising capabilities. In the future, it plans to expand services and grow its customer base.

Trivia

Interesting Facts

  • Rakuten Bank branch names are named after music genres.
  • First online bank to obtain Visa Principal Membership.
  • Formerly eBank Bank, a pioneer online bank opened in 2001.
  • Has maintained free interbank transfer fees since inception.
  • Serves as the financial core of the Rakuten economy with diverse services.
  • No proprietary ATMs; usable via wide partner ATM network.
  • Achieved rapid growth after becoming a wholly-owned Rakuten Group subsidiary.
  • Highly rated smartphone app with strong support from younger demographics.
  • Enhances customer support through online services.
  • Rakuten Card points linkage is popular among customers.
  • Provides comprehensive financial services as part of Rakuten Group.
  • Actively expanding business debit cards and corporate deals.
  • Rare online bank already listed on TSE Prime Market.
  • New cash card issuance fees have been eliminated.
  • Only prepaid card issued under Rakuten brand.

Hidden Connections

  • Indispensable presence for Rakuten Group's diversified businesses in finance.
  • Jointly operates bank agency model with Dai-ichi Life and JR East.
  • Strengthened collaboration with Mizuho FG after capital alliance considerations.
  • Accelerated growth under new regime after management dispute with Livedoor.
  • Core of integrated financial services with Rakuten Securities.
  • Established bank with track record from early days of online banking in Japan.
  • Contributes to powerful utilization of Rakuten Card's customer data.
  • Collaborates with numerous affiliates like Rakuten Bank System and Rakuten Trust.

Future Outlook

Growth Drivers

  • Increasing national penetration of online banking usage
  • Strengthened customer retention through Rakuten economic circle linkage
  • Improved service quality via introduction of advanced IT like AI and cloud
  • Diversification of financial function provision business through BaaS expansion
  • Global expansion and diversified business development

Strategic Goals

  • Achieve 20 million service users
  • Establish position as Japan's top FinTech leader
  • Secure top ESG rankings and realize sustainable management
  • Establish next-generation standards in digital banking technology
  • Create new financial services through enhanced Rakuten Group collaboration

Business Segments

Corporate Accounts and Cash Management

Overview
Services to improve corporate cash management and payment convenience.
Competitiveness
Total financial solutions through Rakuten Group collaboration
Customers
  • Small and Medium Enterprises
  • Startups
  • Large Corporations
Products
  • Corporate Ordinary Deposits
  • Payment Settlement Systems
  • Internet Banking Services

Corporate Card Services

Overview
Provides payment cards for corporations to streamline expense management.
Competitiveness
High usage promotion effect through Rakuten Points linkage
Customers
  • Small and Medium Enterprises
  • Mid-Sized Companies
  • Corporate Members
Products
  • Corporate Credit Cards
  • Corporate Debit Cards

Corporate Lending

Overview
Flexible lending products tailored to corporate funding needs.
Competitiveness
Utilizing credit guarantees and Rakuten's screening expertise
Customers
  • Growing Companies
  • New Businesses
Products
  • Equipment Fund Support Loans
  • Working Capital Loans

BaaS Platform

Overview
Promotes revenue diversification by providing banking functions to other companies' services.
Competitiveness
Leveraging Rakuten Group's technology and market power
Customers
  • Fintech Companies
  • Financial Institutions
Products
  • API Banking Services
  • White-Label Accounts

Payment Solution Provision

Overview
Supports merchant sales growth by providing diverse payment methods.
Competitiveness
High customer loyalty through linkage with Rakuten Points
Customers
  • E-commerce Operators
  • Retailers
Products
  • Online Payment Gateway
  • Electronic Money Recharge Services

Public Competitions and Lottery-Related Services

Overview
Comprehensive support for online sales of public competitions and lotteries.
Competitiveness
Fusion of major bank reliability and internet technology
Customers
  • Public Competition Organizers
  • Lottery Sellers
Products
  • Online Sales Systems
  • Payment Linkage Services

Competitive Advantage

Strengths

  • Utilization of Rakuten Group's vast customer base
  • Strong brand power as Japan's largest online bank
  • Extensive network of partnered ATMs
  • Provision of highly functional smartphone apps
  • Robust financial base and stable revenue structure
  • Cross-selling effects through Rakuten economic circle linkage
  • Adoption of advanced digital banking technology
  • Business diversification through expansion of corporate services
  • Powerful integration with Rakuten Points program
  • Nationwide free ATM usage network
  • Diversity in multi-brand card products
  • Accumulated operational know-how from years of experience
  • Strong responsiveness to smartphone-focused customer needs
  • Solid capital strength and stable finances
  • Swift new customer acquisition and service expansion

Competitive Advantages

  • Unique customer environment built through Rakuten Group ecosystem linkage
  • Specialization in internet-centric service design
  • Platform strength to provide diverse payment functions integrally
  • Market influence based on industry-leading customer numbers and deposits
  • Adoption of innovative credit screening and risk management systems
  • Comprehensive financial products covering wide customer segments from corporates to individuals
  • High evaluation of customer loyalty enhancement using Rakuten Points
  • Leads competitors in convenience through diverse ATM partnerships
  • Stabilized fundraising via TSE Prime Market listing
  • Aggressively introducing FinTech for digital transformation
  • Enhanced customer services through strong ties with Rakuten Card and Rakuten Securities
  • BaaS business via API provision meets new financial demands
  • Builds trust with long-term customers through stable lending products
  • Providing multifaceted financial IT solutions to corporate customers
  • Brand power, recognition, and trust backed by Rakuten

Threats

  • Intensifying competition from rivals like SBI Sumishin Net Bank
  • Pressure from other financial institutions such as city banks strengthening online operations
  • Risk of increased operating costs due to stricter financial regulations
  • Escalating cyberattack and data breach risks requiring enhanced measures
  • Pressure on interest margins from prolonged low-interest environment
  • Risk of shrinking customer base due to Japan's declining and aging population
  • Increased loan loss risks from deteriorating economic conditions
  • Concerns over market share loss to tech innovations by new entrants
  • Risk of customer outflow from competitors' point service expansions
  • Revenue instability from international finance and forex fluctuations
  • Risk of lagging behind diversifying customer financial needs

Innovations

2023: Complete Smartphone App Overhaul

Overview
Improved UI/UX for better user experience and added new features.
Impact
Achieved higher customer satisfaction and usage rates.

2024: Introduction of AI-Linked Credit Screening System

Overview
Significantly improved accuracy and speed of loan screening.
Impact
Improved approval rates and reduced loan loss risks.

2022: Launch of Sustainable Finance Products

Overview
Introduced environmentally considerate investment trusts and green loans.
Impact
Enhanced social evaluation and acquired new customer segments.

2023: Participation in Digital Currency Verification

Overview
Joined verification of central bank digital currency (CBDC) technology.
Impact
Strengthened future payment service capabilities.

2021: Launch of BaaS Services via API Openness

Overview
Began providing financial functions via API to other companies.
Impact
Promoted revenue diversification and partner expansion.

Sustainability

  • Promotion of environmentally considerate financial products
  • Support for regional economic revitalization
  • Strengthened customer data protection and privacy management
  • Support for financial inclusion of women and youth
  • Cooperation with Rakuten Group on ESG investment promotion