Japan-based e-commerce company Rakuten, through its wholly-owned subsidiaries Rakuten Bank and Rakuten Card, has set up a joint venture (JV) in Taiwan in partnership with IBF Financial Holdings.
The new JV has been named Rakuten International Commercial Bank (RICB).
The RICB will be headquartered in the country’s capital Taipei.
It will provide electronic banking services to customers with a capital of TWD10bn ($333.6m).
Rakuten group, which received the regulatory nod to establish the JV last year, will be the majority stakeholder of the new venture.
Under the terms of the JV agreement, the Tokyo-based Rakuten Bank will own a 50% stake in RICB while Rakuten Card will own a 1% stake.
The remaining 49% stake will be held by Taiwan-based IBF Financial Holdings.
To further strengthen its banking business in Taiwan, Rakuten Bank and Rakuten Card also received the regulatory nod to establish an online banking business with IBF Holdings.
The Rakuten group also plans to expand its banking business in the US through its Rakuten Card subsidiary.
Launched in 2008 as an e-commerce company, the Rakuten Group has expanded its business into areas like credit cards, travel, flea market app, and e-books.