Japanese conglomerate Rakuten is considering consolidating its finance operations into one department.
The plan, announced on Monday (April 1), will see the company combine its banking, insurance, securities, card companies and other fintech businesses into one group.
“This decision will strengthen collaboration across FinTech businesses, including quick and flexible decision-making, and deepen collaboration in areas such as data integration and AI utilization, which will provide innovative financial services and improve financial services. This is based on the belief that this is important to increase added value for our customers,” the company said in a statement. announcement.
“Meanwhile, Rakuten Bank has worked to further expand its customer base, strengthen its revenue base, and capture growth in the FinTech field, with the aim of becoming a leading FinTech company in the cashless era.”
The company said the reorganization is expected to take place in October.
According to research from PYMNTS Intelligence, consumers like the idea of consolidating banking and other financial services in one place, and more specifically, in one app.
Consumers overwhelmingly value convenience, with nearly 7 in 10 US and Australian consumers saying they would integrate digital retail, grocery shopping and bill tracking into a one-stop app. They say they prefer to manage banking, investments, and various shopping activities. Via the apps you use every day.
“Consumers expect the apps they use every day to provide the convenience they want. 59% of US consumers and 37% of Australian consumers say the biggest benefit of using an all-in-one app is “seamless payments integration,” PYMNTS wrote last year. “Furthermore, a significant proportion of consumers in both markets see the apps they use on a daily basis as a potential solution to minimizing app-related security concerns.”
Meanwhile, PYMNTS recently examined trends in collaboration between traditional banks and emerging digital players in a conversation with . Dave ScolaCEO, USA form 3.
He said that while the continued shift to online channels for banking is “definitely here to stay,” there are still interactions that customers would prefer to have face-to-face with their banks, so it’s unlikely that banking will be fully operational. However, this does not mean that the company has moved into the digital realm. — Mainly for high-value transactions.
And these visits provide banks with an opportunity to cross-sell other products and services, Scola added.
“Banks don’t like to give this up, which is understandable,” Scola said. “They’re going to want to preserve this as much as possible going forward.”
