What happened: The Japanese internet and fintech company Rakuten has acquired parts of the German banking-as-a-service provider Dock Financial (LinkedIn). Dock Financial went insolvent last year, as I covered in this newsletter edition. The origin of the company dates back to 2006, when PPRO founded Crosscard, the company's previous name. The company was renamed to Dock Financial when Marko Wenthin, Solaris’ founder and first CEO, became CEO and part-owner of the company.
My comment: There is not much information about Rakuten’s acquisition of Dock Financial, but it seems the Japanese company is acquiring Dock Financial’s technology and has also hired a few of Dock’s former employees. We can only speculate what Rakuten’s intention is with this acquisition. Rakuten owns Rakuten Europe Bank, which holds a licence in Luxembourg. Back in 2017, when the bank's launch was announced on Rakuten’s website, Rakuten aimed to focus on SME banking products. However, as of today, it appears that it only offers a reward solution for both consumers and businesses. Back in its home market, Japan, Rakuten partners with non-financial brands (e.g., East Japan Railway Company) and describes its effort as banking-as-a-service. Perhaps the company wants to launch a similar offering in Europe, which is why it acquired Dock Financial. At this point, this is just a guess, as Dock’s technology could likely be helpful for consumers or businesses facing bank products as well.
