Latest news with #TomotakaTorin
5 days ago
- Business
INTERVIEW: Rakuten Bank to Test AI for Loan Screening
News from Japan Economy Aug 14, 2025 13:12 (JST) Tokyo, Aug. 14 (Jiji Press)--Rakuten Bank President Tomotaka Torin has said that the internet-only bank will introduce artificial intelligence on a trial basis for screening housing and real estate-backed loan applications. "I have high hopes (for AI's potential)," Torin said in an interview. "The key is how quickly we can grow and utilize AI," he said. Torin also mentioned a plan to develop a system in which AI responds to customer inquiries by voice. Rakuten Bank, a member of the corporate group led by e-commerce giant Rakuten Group Inc., is already testing AI for screening some credit card loan applications. The AI-based voice consultation system is now being developed. While regulations on banks' AI use have yet to be determined, the new technology would enable "proactive dialogue" with customers in proposing financial products and asset management options if it is put into practical use, Torin said. Practical AI use can also help overcome the weakness of internet-only banks, which do not have physical branches, he also said. [Copyright The Jiji Press, Ltd.] Jiji Press
Mint
6 days ago
- Business
- Mint
Rakuten Bank to Refrain From JGB Buying as More Rate Hikes Seen
(Bloomberg) -- Rakuten Bank Ltd. will likely hold back from actively buying Japanese government bonds until the central bank raises interest rates again, in the latest sign that an uncertain policy outlook is weighing on investor sentiment. The lender, a unit of Japan's e-commerce giant Rakuten Group Inc., has seen its total deposits almost triple from five years ago to ¥11.7 trillion ($79 billion) at the end of June, as its online banking services attract more customers. While the deposits are dwarfed by those of Japan's biggest lenders, Rakuten Bank's fast-growing cash pool is pushing it to look for investments. Japan's sovereign debt looks out of the picture for now due to volatility in the market. The bank shied away from making any fresh JGB purchases for investment during the first six months of the year. It held about ¥617 billion of JGBs at the end of June that it bought to hold until maturity, according to the bank's data. 'We're not going for any aggressive buying of JGBs until we've seen at least another rate hike or two,' the bank's Chief Executive Officer Tomotaka Torin said in an interview. 'Our focus is on maintaining an operation that won't suffer setbacks against rising yields.' Japan has been at the center of routs in global markets this year, with yields surging, particularly for longer-maturity bonds. Investors in JGBs are still adjusting to the Bank of Japan shifting to gradual monetary tightening from negative interest rates, and many financial firms are staying away from bonds for now. BOJ watchers are becoming more convinced the next increase in borrowing costs is coming closer due to an uptick in inflation expectations, according to a recent Bloomberg survey of analysts. Overnight indexed swaps have fully priced in the possibility the BOJ will raise interest rates by 25 basis points by April. Torin said the bank will apply the same methods in managing mortgage loan products. The bank can't afford to provide ultra-low interest rate mortgages at a time when yields are set to climb, Torin said. Once profit margins have normalized following an increase in interest rates, 'that'd be the time for us to accelerate' lending, he said. The bank's total loan balance including credit card financing stood at ¥4.76 trillion at the end of June, up about 12% from a year ago. Finance businesses including Rakuten Bank are a growing part of Rakuten Group's operations with the segment accounting for more than half of the group's earnings before interest, taxes, depreciation and amortization, or Ebitda. More stories like this are available on
