Orange has entered into exclusive negotiations with French banking and insurance group Groupama with a view to Orange acquiring 65 percent of Groupama Bank ahead of the launch of Orange Bank in France at the start of 2017. Orange Bank is described as a 100 percent mobile bank that will offer all standard banking services, including savings loans and insurance services.
The partnership will allow Orange to diversify further into banking services, which already include Orange Money in Africa and the Middle East and Orange Finanse in Poland. It will also contribute to meeting an objective of the group’s Essentials2020 strategic plan, which aims for EUR 400 million of revenue from financial services in 2018.
After its launch in France, Orange plans to extend its banking service to other European markets such as Spain or Belgium.
Groupama CEO Thierry Martel said of the tie-up, “Orange’s technological leadership and the ubiquity of mobile phones will enable us to move forwards, faster and further, to create a bank that factors in all the possibilities and the fluidity that is inherent in today’s technology. In a word, and without revealing the innovations at this stage, Orange’s know-how and expertise in robust digital systems will enable us to go beyond online banking applications that are currently available on smartphones in order to transform users’ mobiles into a virtual bank and insurance branch that is always at hand.”
Commenting on the announcement, Orange chairman and CEO Stephane Richard said, “Orange benefits from a unique combination of essential assets that will enable it to successfully launch a highly innovative, 100 percent mobile bank. These include a strong brand embodying key values such as security and reliability, a solid distribution network and above all the confidence of 28 million customers in France.”
