Orange is to launch a domestic mobile banking service at the start of next year, having acquired a two-thirds interest in France’s Groupama Banque for an undisclosed amount.
The operator announced it was in talks with the bank’s parent, insurance firm Group Groupama, back in January. Now, discussions have come to fruition, with Orange acquiring a 65 per cent stake in the banking unit. Group Groupama retains a 35 per cent stake.
Next year’s launch will cover current accounts, savings, loans and insurance, as well as payment (presumably including NFC-based at the point of sale) via a user’s smartphone. Orange Bank is the name of the legal entity and Orange will sell mobile banking under its name within its own distribution network. Groupama will use its own brand to sell the service to its customers.
The aim is to attract “over two million customers” to Orange Bank, although no target date is specified for achieving this goal. After France, the aim is to launch in Spain and Belgium.
Mobile banking is already part of Orange’s Essentials2020 strategy. However, the recent failure of talks to acquire Bouygues Telecom has presumably given a new edge to diversification efforts.
Entering the banking market offers Orange the opportunity to be disruptive in its own right, adding its mobile expertise to Groupama Banque’s banking licence, more than 530,000 customers, deposits exceeding €2.1 billion and loans of about €2 billion.
“Orange aims to bring mobile banking into a new dimension,” said Stephane Richard, the group’s chief executive.
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