Retailer Rakuten beats Japanese lenders at digital banking game

Rakuten Group is gaining ground on traditional banks, while banks are pushing back by launching their own digital services. — AFP

Rakuten Group Inc. is emerging as the first real digital contender to Japan’s traditional lenders, using its Amazon.com like e-commerce dominance to steer users to its online bank.

New digital bank accounts at the internet conglomerate that’s better known for its online shopping services expanded by 20% last year and recently topped 10 million, the most among the country’s online lenders. Deposits grew by about 50% over the same period to more than 5 trillion yen (RM190.45bil), putting it on par with Japan’s mid-sized regional banks.