Rakuten Inc. has withdrawn its application for deposit insurance days after the Federal Deposit Insurance Corp. approved two other industrial bank applications.

But this is not the end of the road for Rakuten Bank America. The company plans to refile its application in the coming months to incorporate feedback received from the FDIC to "enhance and strengthen" its application, according to the company's press release.

When Rakuten originally filed in July of 2019, it was aware that withdrawing and eventually refiling the application could occur, a spokesperson for Rakuten Bank America wrote in an email. The spokesperson called this "a procedural step that frequently occurs in the regulatory review process." This is a common practice for industrial banks — both Square Inc. and Nelnet Inc. withdrew and refiled their applications before being approved by the FDIC last week.

The company's application withdrawal also comes after the FDIC introduced a notice of proposed rulemaking last week to formalize the industrial bank application process. Companies whose applications were pending prior to the rule-making will not be subject to the rule. Rakuten previously fell under that category, but it is unclear if withdrawing and reapplying will subject the company to the proposed rule if it passes.

Rakuten Bank America's industrial bank application with the State of Utah Department of Financial Institutions will remain active, the spokesperson said.