Japanese fintech company Rakuten Card has announced plans to commence banking operations in the US.

The plan involves establishing an industrial bank in the US state of Utah, subject to necessary approvals.

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The Japanese fintech has already started preparations and has filed its application with the respective authorities in Utah.

In a press statement, Rakuten Card said that it will follow all necessary procedures to provide banking services in the US.

The new entity, set to be founded on 31 July 2019, will be named Rakuten Bank America. The company has allocated an initial capital of $400m for the new venture.

It will be wholly-owned by Rakuten Card, which is itself a subsidiary of electronic commerce and Internet company Rakuten.

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Services offered by Rakuten Bank America will include personal and business loans, credit cards issuance and deposits services.

Currently, the establishment of the new bank is expected to have limited impact on the group’s financial performance.

Rakuten Card, with a capital of JPY19.32bn, offers credit cards, loans and credit guarantee services.

In the US, Rakuten launched an affiliate service in 2005 and established as an e-commerce service five years later.

The company has expanded its business into various businesses including membership-based online cash-back site and e-books among others.

In January this year, Rakuten announced signing an agreement to offer online banking services in Taiwan.

RakutenCard and Rakuten Bank, two of its subsidiaries, signed the agreement with Waterland Financial Holdings (WFH) to form a joint venture (JV) for the initiative.