Orange Bank gets go ahead, targets two million customers

Orange, Groupama, mobile, banking

Orange and Groupama have finalised a deal that will see a mobile banking service launch in France, Spain and Belgium.

As trailed in January the operator will take a 65 percent stake in Groupama Banque, on whose infrastructure platform Orange Bank is based.

The transaction is expected to close in Q3 following regulatory approval.

The two companies also revealed that they are aiming to attract over two million customers in France, where the service will debut early next year.

Specifically, they plan to offer current accounts, savings, loans and insurance services, as well as payment.

Although the company will be called Orange Bank, it will be marketed under the Groupama brand within its distribution networks.

Groupama CEO Thierry Martel said: “We are aiming to put the high street bank into our customers’ pockets.”

At Mobile World Congress in February, Orange executive Laurent Paillassot claimed the bank had a window of five to seven years before rivals could offer a similar service.

[Read more: Orange bullish on bank plans, gives itself five years head start on incumbents]

Stéphane Richard, Chairman and Chief Executive Officer of Orange, said: “This agreement is a major step forward in our ambition to diversify into mobile financial services as we outlined in our Essentials2020 strategy.

“Groupama Banque will bring an existing banking structure as well as considerable experience in managing customer relations remotely within a banking context.

“This will enable us to move forward rapidly in order to provide our customers with an innovative, 100% mobile banking service, first in France and then in Spain and Belgium.

“By leveraging the power of its brand, its distribution network and its extensive experience in digital services, Orange aims to bring mobile banking into a new dimension.”

More News

Nokia CEO “cautiously optimistic” as business improves in first quarter Nokia CEO “cautiously optimistic” as business improves in first quarter Nokia CEO Rajeev Suri said he was cautiously optimistic about the year ahead as he unveiled improving Q1 financials. More detail
Orange CEO says strategy is bearing fruit as he unveils Q1 figures Orange CEO says strategy is bearing fruit as he unveils Q1 figures Orange continued to improve its financial performance in the first quarter as sales and earnings rose. More detail
Vodafone and Proximus extend Belgium, Luxembourg agreement to 2022 Vodafone and Proximus extend Belgium, Luxembourg agreement to 2022 Vodafone and Proximus have renewed a strategic partnership that will see the two operators continue to offer joint products and services in Belgium and Luxembourg. More detail
Telia lowers Uzbek fine expectations, finally sells Tcell, as it reports Q1 numbers Telia lowers Uzbek fine expectations, finally sells Tcell, as it reports Q1 numbers Telia has said it hopes to pay less than anticipated for alleged corruption in Uzbekistan, as it finally sold off its opco in Tajikistan. More detail
KPN sees wholesale problems add to its business woes in Q1 KPN sees wholesale problems add to its business woes in Q1 KPN’s wholesale arm registered a double-digit decline in sales in the first three months of the year, although the operator made headway on improving its profits. More detail
    

@eurocomms