Rakuten Bank
Digitalization in Japanese banking took a big leap during the pandemic. As customers had no choice but to go virtual for their banking needs, digital solutions were crucial. With its strategic goal of helping to solve social issues digitally, Rakuten Bank stands out from the pack.
In January 2022, the first online bank in Japan had more than 12 million accounts. Because of its digital set-up, Rakuten can cap costs and offer preferential deposit interest of up to 0.1%, 100 times higher than the megabanks. In a country with ultra-low or zero interest rates, this helped Rakuten to attract customers and deposits.
Its deposits exceeded ¥6 trillion ($44 billion) in June 2021, then added another ¥1.5 trillion in just six months to surpass ¥7.5 trillion in December 2021.
In the year to the end of March 2022, the Japanese firm continued its unique legacy of providing reverse mortgages. Despite a fast-ageing society, only a limited number of banks offer reverse mortgages, a product that gives much more by way of desired liquidity to retired people.