Rakuten Inc has recently published a notice. This notice is in regard to the progress the firm has made in the setup process of its banking business in Taiwan.

Pushing Into Electronic Banking

On the 18th of May, 2020, Rakuten Card Co Ltd, as well as Rakuten Bank Ltd, completed a registration to establish a joint venture in Taiwan alongside IBF Financial Holdings Co Ltd. It should be noted that Both Rakuten Card and Rakuten Bank are wholly-owned subsidiaries of Rakuten Inc.

This new venture will operate under the name of Rakuten International Commercial Bank Co Ltd. Rakuten Bank will hold 50% of the business’ shares, with IBF holding 49% of the company’s stake. The remaining 1% will be given to Rakuten Card. The capital for the business will be 10 billion New Taiwanese Dollars or NT$. The company will provide its various customers with electronic banking services.

Joining Forces With IBF

It was back in July of 2019 when Rakuten had received the necessary approvals to start its banking operations within the country. The company itself had been handling E-commerce since 2008. Ever since, Taiwan Rakuten has continued to expand the areas it does business in, from credit cards to a flea market app, to e-books and travel. Taiwan Rakuten has established itself as a robust ecosystem, focusing on credit card businesses and E-Commerce. Thus, Taiwan Rakuten stands as one of the most important regions of the company’s overseas business ventures.

Rakuten bank and Rakuten Card sought to strengthen their Taiwan-based ecosystems further, however. Thus, they applied for, and subsequently received the necessary approvals to operate as an online banking business within the country, doing so alongside IBF. IBF, in turn, has already considered entering the banking business with Taiwan, so the mutual partnership fitted both their needs.

A World In Recovery

At the present time, however, the potential impact this venture has on Rakuten Group’s financial performance is limited.

It seems like the Group is eager to push into Taiwan, and will undoubtedly reap the benefits later on. As it stands now, the COVID-19 pandemic is wreaking havoc in the financial industry, however. With any luck, this pandemic will start to die down, with some countries already starting to recover from the ramifications thereof. As the world is forced to keep turning in these trying times, one can only hope that a vaccine will be developed sooner rather than later.