JAPAN TODAY



 

Mizuho Financial Group Inc, one of Japan's three megabanks, and Rakuten Group Inc, one of the country's largest e-commerce firms, said Wednesday that Mizuho Bank will invest in Rakuten Bank on Oct 1.

Mizuho Bank currently holds a 14.99 percent stake in Rakuten Card on an issued stock basis, but will withdraw the investment and shift an equivalent amount into Rakuten Bank for a 5.81 percent stake.

The capital alliance comes as Mizuho aims to strengthen its ties with internet banks and gain new, especially younger, customers, as competition for deposits intensifies after the Bank of Japan ended its decade-long unorthodox monetary easing in 2024.

The partnership is expected to expand, with the two firms considering having Rakuten participate in corporate loans by Mizuho as well as outsourcing counter services in times of disaster for Rakuten customers to Mizuho. Rakuten has no physical branches.

The two groups have promoted partnerships, with the Mizuho Rakuten Card service launched in 2024 to allow card payments to be deducted from Mizuho Bank accounts. Mizuho Securities Co also holds a stake in Rakuten Securities Inc., and the investment will remain unchanged.

Rakuten will reorganize its financial business on Oct 1, with Rakuten Card and Rakuten Securities Holdings Inc placed under the umbrella of Rakuten Bank, as it plans to improve its fundraising efficiency and bring in customers by enhancing convenience through its integrated financial app.

The newly structured Rakuten Bank, including Rakuten Card, aims to post a group recurring profit of more than 400 billion yen ($2.5 billion) by the year ending March 2030.